Public sector lenders, Punjab National Bank and Union Bank have hiked deposit rates by upto1 percentage point on various maturities.

The banks have raised interest rates on deposits having maturities in the range of 91 days to less than six months to 5.50% which is a 1% rise over the earlier rates. Deposits with maturity of one year and less than two years has been raised by 0.25%.

PNB has raised rates on two maturities by 25 basis points. Rates for 180-270 day deposits would be 6% while those for 1-2 year deposits would be 7%.

Interest rates for deposits having tenor in the range of 15-45 days will now be 3.5%. Deposits for between nine months and one year are up 0.25 per cent from 5.75 per cent to 6 per cent.

A new scheme has also been introduced by UBI, named Union Million Deposit which will fetch the depositor with an interest of 7.80%.