Central Bank hikes interest rates

FOLLOWING ANNOUNCEMENTS made in the Union Budget last month, Central Bank of India has been the first among the public sector banks in the country to increase its rates of interest on domestic term deposits.

The upward revision of interest rates made on domestic term deposits for various maturity periods by 25 to 50 basis points will come into effect from April 1.

According to the Central Bank, no change in rates of interest has been made on deposits for the maturity period up to 45 days.

Whereas, for the maturity period of 46-90 days, the revised interest rate on deposits would be at 5 per cent per annum against the existing 4.75 per cent.

Similarly, rates of interest have been increased for the maturity periods 91-179 days; 180 days to less than 1 year; 1 year to less than 3 years; 3 years to less than 5 years and for 5 years and above. The highest rate applicable would be 6.75 per cent per annum.

The bank has extended an additional interest rate of 0.50 per cent per annum over and above the normal rate of interest for any of the time deposit schemes, as incentive to senior citizens.

However, senior citizens above 70 years of age are eligible for an additional rate of interest of one per cent per annum. The revised domestic term deposit rates will apply only to fresh deposits and renewal of maturing deposits.