Earn more on deposits - Pay higher EMIs
Earn more on deposits - Pay higher EMIs
Banks have been raising rates in past few months so the consumer loans, including home, personal and education loans have become costly. So now have to shell out more to own your dream home or any other loan you may opt for. Good news for depositors, as now they stand to earn higher returns on deposit with banks. And the rates are bound to increase further.
The latest bank to hike rates is HDFC Ltd. The base rate - the minimum rate at which bank can lend now stands at 8.70% per annum (50 basis points (bps) increase). The benchmark prime lending rate (BPLR), (which still exists for some old customers) stands at 17.25% per annum (75 bps increase). HDFC has increased the rates for the second time this year, effective 14th March. This rate will affect all consumer loans other than home loan.
As mentioned above the deposit rates are also on the rise, HDFC Bank has also increased deposit rates by 25-100 bps over various maturities. The highest interest rate on the deposits is 9.25% over a tenor of two years and 16 days.
Now, about Home loans. Effective 1st March HDFC's retail prime lending rate (PLR) will be 15.5% (25 bps increase). All floating rate loans are linked to retail prime lending rate and the increased rates are applicable to both existing and new customers. The total increase in the retail prime lending rates is of 175 bps in the current fiscal year.
ICICI Bank Ltd, has also hiked its base rate, BPLR and floating rate by 50 bps each with effect from 24th February. Thus the base rate now stands at 8.75% per annum, the floating reference rate at 14.50% and BPLR at 17.50%. The increase in deposit rates across various maturity periods are between 25-50 bps. The highest deposit rate being offered by the bank is 10% per annum for a tenor of 990 days.
Other banks that have increased their rates in the past month include:
Bank of India with increased deposit rates by 25-175 bps. The highest rate offered by the bank is 9.25% per annum for deposits with a tenor of 555 days.
Allahabad Bank with increased deposit rates by 25-75 bps. The peak rate offered by the bank is 9.25% per annum on deposits maturing in 450 days.
All rates effective from 10th of March.
S.C. Sinha, executive director, Oriental Bank of Commerce said, "Liquidity is still not comfortable in the banking system and coupled with high inflationary trend, ratesdeposit as well as lendingare likely to go up by 25-50 basis points". What makes Aveo Chevrolet a smart buy? Don't Buy FastSize Until You Read This Special Report Buy Vimax Volume to Increase You Semen Volume Get Online Shopping Deals Online Shopping - Some of the Benefits and Disadvantages Be Different From Your Neighbors – Buy Unique Candle Holders Online Shopping: Save and Secured What to Think About When Shopping Online - Adult Stores Safe Shopping online Tips Buy a Ferret: Things to Know Beforehand EasyWork, GreatPay is Happening Now The Three Rules of Shop Insurance Buy Brand BURBERRY Items