Rise in FD rates by Allahabad Bank
Allahabad Bank has increased its Fixed Deposit (FD) rates by up to 50 basis points. The hike will be in effect from 1 September 2018. The rates are revised from 4.00% to 4.50% for deposits with a maturity period of 7 days to 29 days, 4.50% to 4.75% for 30-45 days, and 6.60% to 6.65% for 1 year to less than 2 years. The hike in rates is a strategy to boost the deposits secured within the bank.
The bank witnessed a decline in its total deposit from Rs.2.14 lakh crore to Rs.2.08 lakh crore towards March. Following the unstable financial status of the bank, the Reserve Bank of India (RBI) advised it against intake of bulk deposit and risk-prone loans. After the RBI’s intervention, its pending loans have fallen from Rs.1.66 lakh crore to Rs.1.57 crore.
7 September 2018
Allahabad Bank Fixed Deposit Rates
Allahabad Bank has been quite conservative in imposing cuts on the interest rates for fixed deposits. While most other banks have slashed rates owing to the repo rate changes in 2015, Allahabad Bank still holds the fort with stable rates. There has been only one tenure which faced a rate change.
The second month of the year of 2016 sees the lowest interest rate offered by Allahabad Bank at 4.50% per annum and that is for the deposit tenure of 7 days to 14 days. The rate jumps up by 0.50% twice for the next two deposit tenures, bringing that rates to 5% and 5.50% per annum for tenures of 15 days to 29 days and 30 days to 45 days. For 46 days to 60 days, there’s an increase of 0.75%, bringing the rate to 6.25% per annum. A further increase of 0.25% brings that rate to an effective 6.50% per annum for tenures ranging from 61 days to 90 days. For 91 days to 179 days, the effective rate of interest is now fixed at 6.75% per annum and for a period of 180 days to 269 days, the interest rate becomes 7.25% per annum. The effective rate of interest, which is incidentally the highest from Allahabad Bank, follows for periods ranging from 270 days to less than 5 years and is at 7.50% per annum. For deposits that go from 3 years to 10 years, that reduces by a marginal 0.25% to 7.25% per annum.
3 February 2016
Changes in Fixed Deposit Rates for Allahabad Bank
Since changes in the repo rate were done by the Reserve Bank earlier in the last quarter of 2015, there have been subsequent changes in the rates considering different offerings from Allahabad Bank. While instruments of credit like loans have gotten rate cuts, a similar reduction has been observed in interest rates of deposits. Fixed deposits have had to bear the brunt of the most aggressive rate reductions than savings and current accounts. Allahabad Bank has consecutively reduced its interest rates on time slabs of fixed deposits.
As of November 2015, the lowest interest rate from Allahabad Bank is at 4.50% per annum for a period of deposit ranging from 7 to 14 days. The rates keep on increasing for deposit slots of larger timeframes until maxing out at 7.75% per annum for periods of 1 year to less than 2 years and 2 years to less than 3 years. Periods equal to or more than 3 years have an interest rate of 7.50% per annum.
3 November, 2015
Changes in Fixed Deposit Rates for Allahabad Bank
Headquartered in Kolkata, the 150 year old nationalised bank of India, Allahabad Bank has announced changes in the rates offered on its fixed deposit schemes. There have been similar moves by other banks across the nation, post the directive by the Reserve Bank of India.
For deposits of less than a crore, the tenures within 61 days-179 days have seen a reduction of 0.25% than the existing rates and the same reduction is also applied for the tenure of 270 days to 1 year deposits. For deposits of tenures from 1 year to less than 5 years, the rates have dropped by 0.10% and are now at 8%. Similarly, Non-resident deposits of less than 1 crore from 1 year to 10 years are at 8%.
17 August 2015
Allahabad Bank Cuts Term Deposit Rates for Specific Maturities
On the heels of similar moves from other Indian banks, state owned Allahabad Bank has also revised its prevalent term deposit interest rates. With effect from January 7, deposits amounting to less than one crore and ranging in tenure from one year to less than five years will command an interest rate of 8.75%, a slash of 15 basis points. As with other banks in the segment, Allahabad Bank is responding to the excess liquidity and limited demand for loans and other deployment instruments to lower its cost of funds. Sources with the bank are optimistic that further cuts will not be necessary, however, the continued state of liquidity and the response from other banks will likely drive Allahabad Bank’s future reactions in this regard.
8 January 2015
Allahabad Bank Reduced Fixed Deposit Interest Rates
Allahabad Bank, a preferred public sector bank has reduced its fixed deposit interest rates from the prevalent 9.05% to the new margin of 8.90%, a reduction of 0.15%. This move comes into effect as of today- November 10, 2014 and follows in the footsteps of other banks, including SBI, PNB, Andhra Bank etc., who also have slashed their existing fixed deposit interest rates by varying margins recently. Allahabad Bank adds that these updated rates are applicable for maturities that range in tenure from 1-5 years and are worth Rs. 1 crore and below. However, the senior citizens will continue to receive their customary addition of 0.50% over the applicable interest rate.
10 November 2014