Allahabad Bank raises fixed deposit rates by up to 2%

Tags: Banking
State-owned Allahabad Bank today raised its fixed deposit rates by up to 200 basis points, or 2 per cent, on various maturities.

The bank, however, slashed deposit rate on a particular slab by 25 basis points.

The bank has decided to revise the interest rate ranging from 0.25 per cent to 2 per cent per annum on various domestic term deposits schemes with effect from February 18, 2011, Allahabad Bank said.

For 270-364 days term deposits less than Rs 1 crore, the bank will pay 7.75 per cent interest, up 25 basis points from the existing rate.

Meanwhile, 5-10 year term deposit holder would get 25 basis point lower return at 8 per cent compared to exiting 8.25 per cent.

Fixed deposits with maturity period between 1-2 year has been raised by 75 basis points to 8.75 per cent, while deposits for 2-5 years would attract an interest rate of 8.5 per cent, 25 basis point higher than existing rate.

In case high value fixed deposit in between Rs 1-5 crore, there has been 200 basis point hike in 2-3 year deposit from existing 6 per cent to 8 per cent.

Besides, interest rate on term deposits of between 3-5 years has been increased by 175 basis points, going up to 7.75, it said.

The new rate on 5-10 year on fixed deposit above Rs 1 crore has been revised to 7.5 per cent from existing 6 per cent.

Last week, SBI, the largest lender in the country, also raised fixed deposit rates on select maturities by 25 basis points.

Banks have been raising interest rates following a 0.25 percentage point hike in short-term lending (repo) and borrowing (reverse repo) rates announced by the Reserve Bank in its third quarterly review of monetary policy last month.

More than 15 banks including Punjab National Bank, Bank of Baroda, Union Bank of India and Indian Overseas Bank has already revised interest rates since the third quarterly review of the monetary policy on January 25.

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