Punjab National Bank And Union Bank Of India Raise FD Interest Rates Ahead Of Diwali
After the Reserve Bank of India (RBI) began raising its repo rate, most Indian banks altered their fixed deposit rates several times. Since May, the Reserve Bank of India has lifted its short-term lending rate for the third time in a row, raising the primary interest rate by 190 basis points. To keep increasing inflation, the RBI’s Monetary Policy Committee (MPC) hiked the key lending rate, or repo rate, to 5.90% on September 30, the highest since April 2019.
The Punjab National Bank and Union Bank of India are among the latest banks to increase their term deposit rates before the holiday season.
Here’s a brief overview of the new rates.
The public sector bank has raised the interest rate on all fixed deposits under Rs 2 crore. The rates go into effect on October 19, 2022. According to the bank’s main website, the bank increased fixed deposit rates by up to 50 basis points across a range of tenors. The maximum rates for ordinary investors, senior people, and super senior citizens are 6.50%, 7%, and 7.30%, respectively.
The bank has raised the interest rate by 50 basis points, from 3% to 3.50%, for plans maturing in 7 to 45 days. The updated interest rate for 46 to 90-day plans is 3.75 percent. Deposits maturing in 91 to 179 days will earn 4.50 percent, up from 4 percent. The new rate for 180-day to one-year plans is 5%, up from 4.5%.
The public sector bank increased the interest rate on deposits maturing in one year to 404 days by 20 basis points, from 5.50 percent to 5.70 percent. The bank would give 6.10 percent on deposits maturing in 405 days.
The new interest rate for deposits of 406 to 599 days is 5.70%. On deposits maturing in 600 days, the bank will now offer a maximum interest rate of 6.50%.
The interest rate for the next tranche, between 601 days and two years, will be 5.70 percent. For the past two to three years, the interest rate has been raised from 5.6 percent to 5.80 percent.
Systematic Transfer Plan Compared With Systematic Investment Plan (SIP)
The bank has raised the interest rate on deposits maturing in 3 to 5 years to 5.80 percent. The interest rate on 5- to 10-year deposits has been raised to 5.85 percent.
Senior citizens will receive an additional 50 basis points (bps) over ordinary rates for terms up to 5 years and an additional 80 bps for terms longer than 5 years. Super senior citizens above the age of 80, on the other hand, will receive an additional rate of interest that is 80 basis points higher than normal investors.
A public sector bank has raised FD rates for schemes under Rs 2 crore. The rates go into effect on October 17, 2022. The bank has boosted interest rates from 91 days to ten years. For plans maturing in 599 days, it will pay a maximum interest rate of 7%.
The bank will pay a 3% interest rate for 7 to 45 days short plans. The new interest rate for 46-90-day deposits is 4.05 percent, while the rate for 91-120-day plans is 4.30 percent. The revised interest rate for 121-180 day plans is 4.40 percent.
The new interest rate for plans of 181 days to one year is 5.25 percent, while the revised rate for one-year projects is 6.30 percent. The public sector bank gives a 6.60 percent interest rate on plans ranging from 1 year to 443 days. The interest rate for 444-day plans is 6.70 percent.
The new interest rate for schemes of 445 to 598 days is 6.60 percent, while the rate for plans exceeding 599 days is 7.00 percent. Deposits maturing in the next 600 to two years will earn 6.60 percent, while deposits maturing in the following two to ten years will earn 6.70 percent.
Senior citizens will receive an extra 0.5 percent interest rate on all projects.