Prime regional rural bank of the country, Karnataka Vikas Grameena Bank has raised interest rates on domestic fixed deposits. The new rates have come into effect from December 7.
While announcing the rate hike, KVGB chairman K P Muralidharan said that the move has been intended so as harbor the habit of savings in customers.
The rates will be 1% more on all maturities for senior citizens. The maximum ceiling in the rates has been set at 9% for them.
Deposits maturing between 15 to 45 days will fetch 4% interest against 2.75% earlier while those having tenor of 46 to 90 days will earn the customer 5.6% interest as compared to 5%.
Maturities of 91 to 179 days, 180 to 364 days and 365 to less than 2 years will fetch 6.55%, 7% and 8.25% respectively.
Tenors of 2years but less than 3 years and 3 years to less than 5 years will earn interest of 8.3% and 8% respectively.
Interest on deposits of 5 years and more tenor will remain unchanged at 7.5% only.