On Friday, Canara Bank a state run bank, took the cue from various loan specialists, increased their fixed deposit premium rates by 0.50 percent.
When filing to the BSE, Canara Bank stated that for fixed deposits whose tenure is between 46 - 60 days and 31 - 90 days, the interest rates has gone up from 7 percent to 7.50 percent.
With revised deposits rate, the max interest rate is now 9.05 percent. For term deposits, whose tenure is between 1-10 year, the interest rate that the customer would earn is 9.05 percent.
This revision of the interest of fixed deposit came after the Reserve Bank of India had decided on October 29 monetary policies to hike the rates of interest by 0.25 percent. Following the move, HDFC and State Bank of India (SBI) decided to increase the minimum rate of lending or base rate by 0.20 percent to 10 percent.