With deposit growth continuing to lag credit growth, Bank of Maharashtra (BoM) and Bank of Baroda (BoB) have upped retail fixed deposit (FD) rates by up to 125 basis points (bps) across select tenors and up to 50 bps across various tenors up to 3 years, respectively.
BoM has effected the maximum increase of 125 bps on FDs of 46-90 days tenor, with the new interest rate being 4.75 per cent against 3.50 per cent earlier. The new rates come into effect from October 12th.
Among all tenors, the Pune-headquartered public sector bank is offering the highest interest of 6.50 per cent (6.35 per cent earlier) on one-year deposit. Special deposit scheme of 200 days and 400 days tenor continue to earn 7 per cent and 6.25 per cent, respectively.
BoB has increased FD rates by 50 bps on five maturity buckets up to one year. The Mumbai-headquartered public sector bank is offering the highest interest of 7.25 per cent (7.05 per cent earlier) on above two years but less than three year deposit.
The Bank, whose new FD rates became effective from October 9, has cut interest rate on “Tiranga Plus - 399 Days” deposit to 7.15 per cent (7.25 per cent).