Central Bank of India slashes fixed deposit rates by up to 1%
State-owned Central Bank of India has reduced the fixed deposit rates by up to 100 basis points or 1 % on select maturities, signaling reversal of the trend of rising rate.
Term deposit with maturity between 91-179 days, would witness a decrease of 100 basis points (or 1 %) from 8 per cent to 7 % effective April 1.
Other lender, which has reduce the interest rates on fixed deposits is Oriental Bank of Commerce . The bank slashed interest rates on fixed deposit of over Rs 1 crore by up to 1 per cent for select maturities from April 2.
For fixed deposits between 180-364 days, Central Bank of India would now pay lesser interest of 8.5 % compared to 9.20 % earlier.
Besides, for deposits with a maturity of 1 year to less than 2 years, the new rate will be 25 basis points lower at 9 per cent from 9.25 per cent, according to the Central Bank of India’s website.
For 555 days (Cent Super plus) fixed deposit scheme the new rate is 9.25 % from 9.6 %, down 35 basis points.
The Mumbai-based bank had last raised fixed deposit rates in the first week of March.
Interestingly, last month RBI also hiked its key short-term lending and borrowing rates by 25 basis points (0.25 %) each with immediate effect to tackle inflation.
The short-term lending (repo) rate now stands at 6.75 % and the borrowing (reverse repo) rate at 5.75 %.
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