NHB raises fixed deposit rates by up to 50 bps

Apex housing lender National Housing Bank (NHB) today increased interest rate by up to 50 basis points on its fixed deposit schemes to attract depositors amid rising inflation.

It has revised rates of interest on its Sunidhi Deposit Scheme ranging from 0.25 per cent to 0.50 per cent effective October 21, NHB said in a statement.

Term deposit with 12-month maturity would attract 7.75 per cent interest rate while interest rate on 24 months fixed deposit will be 8 per cent.

NHB launched two deposits schemes namely Sunidhi and Suvriddhi in January, 2009. Deposits under Suvriddhi Term Deposit Scheme are for fixed maturity of five years and carries interest rate of 8.25 per cent. It also qualifies for tax rebate under Section 8OC of the Income Tax Act, 1961.

 

These scheme were launched by the NHB last year to mobilise deposits from retail investors.

The revision in deposit rates follows the RBI's move to raise short-term lending (repo) and borrowing (reverse repo) rates in its September monetary review in order to tame inflation by curbing consumer spending.