Indian Overseas Bank raises interest rates on DFs

The Indian Overseas Bank (IOB), a public sector lender, raised interest rates on fixed deposits by less than Rs 2 crore. The updated rates are effective from 10.08.2022, according to the bank’s official website.

The bank will continue to offer an interest rate of 3% on term deposits maturing between 7 and 45 days and an interest rate of 3.75% on term deposits maturing between 46 and 90 days. In addition, the bank will continue to offer an interest rate of 4.50% on term deposits with maturities between 180 days and less than one year. IOB will continue to offer an interest rate of 4.00% on deposits due between 91 and 179 days.

Interest rates on IOB Tax Saver Deposits will remain at 5.70%, with an additional 0.50% for seniors and 0.75% for super seniors (those 80 and over).

The rise in IOB fixed deposit interest rates followed the decision of the Reserve Bank of India’s monetary policy committee to raise the repo rate by 50 basis points to 5.40%. Due to rising repo rates, lenders are increasing interest rates on their loans and term deposit products. Canara Bank and Bandhan Bank are two such examples. Canara Bank has raised interest rates on fixed deposits by less than 2 crore, with the new rates taking effect on August 8, 2022.

Bandhan Bank, on the other hand, has raised interest rates on savings accounts, with the higher rates taking effect on August 8, 2022. The Federal Bank has also raised the interest rate on its savings accounts . ICICI Bank, Canara Bank, HDFC Bank, PNB and Bank of Baroda, on the other hand, raised their external benchmark lending rates.

Read also | Center Appoints Vivek Aggarwal as Director of RBI Candidates at Indian Overseas Bank

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