Central Bank raises term deposit rates

Mumbai: Central Bank of India has hiked interest rates on term deposits by 25-150 basis points with effect from Monday.

In the case of deposits above 15 lakh but below 1 crore, the bank has increased interest rates by up to 50 basis points on select maturities. Fresh term deposits in the one year-less than two years maturity bucket will earn 6.50 percent interest (6.25 percent earlier) and deposits in the two years to less than three years tenor will carry 6.75 percent interest (6.50 percent). Deposits placed for three years to less than five years will fetch seven percent (6.50 percent).

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In the case of bulk deposits above 1 crore, Central Bank of India has upped interest rates sharply by 100-150 basis points on select maturities. Fresh term deposits in the 46-90 days maturity bucket will earn four percent interest (three percent earlier) and deposits in the 91-179 days tenor will carry five percent interest (3.5 percent). Deposits placed for 180-269 days and 270-364 days will fetch 4.5 percent (5.5 percent) and six percent (5.5 percent) interest respectively.

Central Bank of India has also slashed interest rates on loans to doctors by 150 basis points to 10.5 percent for purchase of equipment and 200 basis points to 11 percent for construction of nursing home cum residence. The bank has waived processing fee on housing, vehicle and personal loans till March 31.