Public sector lender, Syndicate Bank has raised interest rates on fixed deposits. The rise in deposit rates seems to come as a follow up of RBI's idea to raise deposit rates and cut lending rates as a measure to reduce net interest margins of banks.
Interest rates have been raised for deposits having tenor of 1 year to less than 2 years to 8.20%. Deposits of maturity between 2 years to less than 3 years will now fetch the customer 8.25% interest.
Maturities of 3 years to 5 years will now bear interest of 8.50%, said SR Chandakkar, chief manager of the bank.
Deposit rates have also been raised by SBI and ICICI Bank.