Banks hike deposit rates again

Mumbai: A number of banks have again raised deposit rates. Bank of India and Vijaya Bank have raised deposit rates for the second time in two weeks by 25-100 basis points. Bank of India has raised the long-term deposit rate and reduced the short-term rate by 25-50 basis points.

The new rates, to be effective from December 1, are as follows: On deposits below Rs15 lakh, the 7-14 days deposit will then fetch 3.00 per cent, 15-45 days deposit, 4.00 per cent, 46-90 days 4.50 per cent, 91 to 179 days 4.75 per cent. The 180 to 364 days deposit rate will remain unchanged at 5.00 per cent and so will the 1 year to less than 2 years rate at 5.25 per cent.

The rate for deposits between two years to less than three years is being raised to 5.50 per cent (5.25) per cent earlier and the 3 years to less than 5 years will be 5.75 per cent (5.50 per cent) and the 5 years and above will be at 6.00 per cent (5.75 per cent).

Bank of India has also introduced higher rates for bulk deposits (above Rs 15 lakh and up to Rs 10 crore. High value deposits will get 25-50 basis points more than the below Rs 15 lakh category.

Vijaya Bank has also raised deposit rates with the 15-45 days deposit rate at 5.00 per cent (4.00 per cent earlier) and the 5 years and above at 6.50 per cent (6.00 per cent). Vijaya Bank has also raised home loan rates by 25-50 basis points with the over ten year fixed rate at 9.00 per cent (8.50 per cent).

State Bank of India (SBI), also hiked deposit rates on Saturday. SBI's 7 to 14 days deposit fetches 3 per cent returns, the 3 years to less than 5 years 5.75 per cent (5.25 per cent). SBI's 5 years & above deposit is more attractive than BoI's at 6.25 per cent (5.25 per cent).