The Indian Overseas Bank (IOB), a public sector lender, raised interest rates on fixed deposits of less than 2 crore rupees. The updated rates are effective as of 10.08.2022, according to the bank’s official website.
The bank will continue to offer a 3 per cent interest rate on fixed deposits maturing in 7 to 45 days and a 3.75 per cent interest rate on term deposits maturing in 46 to 90 days. Furthermore, the bank will continue to provide a 4.50 per cent interest rate on fixed deposits maturing in 180 days to less than a year. IOB will continue to offer a 4.00 per cent interest rate on deposits due in 91 to 179 days.
Interest rates on IOB tax saver deposits will stay at 5.70 per cent, with an extra 0.50 per cent for senior citizens and 0.75 per cent for super senior citizens (those 80 years of age and above).
The hike in IOB fixed deposit interest rates followed the monetary policy committee of the Reserve Bank of India raising the repo rate by 50 basis points to 5.40 per cent. As a result of the repo rate rise, lenders are hiking interest rates on their loans and fixed deposit products. Canara Bank and Bandhan Bank are two such instances. Canara Bank increased interest rates on fixed deposits of less than 2 crore, with the new rates taking effect on August 8, 2022.
Bandhan Bank, on the other hand, raised interest rates on savings accounts, with the higher rates taking effect on August 8, 2022. 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, have raised their external benchmark lending rates.
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