SBI had revised the Fixed Deposit rates for 5-10 years by 0.5 percentage point to 9%, while 3-5 years tenure was hiked by 0.35 percentage points. Senior citizens will get 0.5 percent more.

Bank of India has also increased deposit rates by atleast 0.5 percentage point for various maturities. For maturities between one year and two years, against the earlier rate of 8.50%, the revised rates would be 9.15%. For two to three years, the new rate is 9.25% as against earlier rate of 8.75%. On fixed deposits of Bank of India of the maturity of three to five years, the customers will now earn 9.50% interest, against the earlier 8.75%.

Recently, Reserve Bank of India had hiked the overnight lending rates for banks by 0.25 percentage points. A senior banker said this has led to rise in both the deposits as well as lending rates. If the inflation continue to rise and crosses 10% mark, there will be another bout of increase in the interest rates in the country.