Recent repo rate hike of 25 basis points by the RBI in the monetary policy review on October 29th has fared well for the short-term fixed deposits. Investors with shorter investment horizon and in lower income tax bracket can bet on this safe instrument and earn higher returns by some margin of 25-125 basis points ( 1 basis point is 1/100th of a percentage point).
Interest rate revised to 7% for short term deposits of 180-210 days
For term deposits of less than Rs. 1 crore and maturity term of 180-210 days, bank has revised interest rates from 6.80 percent to 7.00 percent. With this investors, can now garner a marginal benefit of 0.2%.
For maturity term anyway between 271days- less than a year; interest rate is 8%
For different maturity terms, PNB raised interest rates. For a deposit mobilized for 271 days and above, bank is offering a return of 8% in contrast of the previous 7.5%. On term deposits for 180- 270, PNB offers 7.5%. For deposits with the bank for 91-179 days, bank has raised returns by a marginal 25 basis points to 7%.
Offering an enticing return of 7.5% on term of 46days-120 days
On deposits for a maturity term between 46 days-120 days,bank increased the rates to 7.5%.
Interest rate of upto 8.25% for maturity term less than a year
For deposit amount less than Rs 1 crore, the bank increased interest rate to 7.5% for deposit maturity anytime between 46 days-179 days. For a maturity term of 270 days to less than a year bank is offering 8.25%.