Fixed deposits look up as banks hike rates again
05 Jan 2011
Conservative investors are seeing good times ahead, as less than two months after the last round of hikes in fixed deposit rates, banks are once again offering savers even higher returns. Better still, observers believe the FD rates have not yet peaked and are expected to go up further.
After State Bank of India (SBI) upped deposit rates last Friday along with its lending rates, HDFC Bank said on Monday depositors could earn as much as 125 basis points more, depending on the maturity period.
On Tuesday, IDBI Bank and Oriental Bank of Commerce (OBC) upped their deposit rates by 25-50 basis points.
IDBI Bank hiked interest rates on retail deposits by up to 0.75 per cent varying according to maturities on Tuesday.
However, in an additional offering to woo customers in the current rising interest rates scenario, the bank has decided to do away with penalties on premature withdrawals of fixed deposits.
Bank of India increased interest rates on a few fixed deposit schemes by up to 0.75 per cent, effective from Monday.
