Banks raise FD rates in year-end push

MUMBAI: Year-end demand for funds is forcing banks to increase fixed deposit rates even as bankers talk about cost of funds heading down.

Bank of Baroda (BoB) and ING Vysya Bank have increased FD rates while other private banks are offering over 10% on certificate of deposit schemes.

BoB has increased returns on most maturities of up to one year by 25 basis points. It has left long-term rates unchanged.

ING Vysya Bank, too, has increased short-term deposit rates by 25 basis points. The bank is running a special 366-day ‘Active’ deposit scheme where it is offering a return of 10% as against 9.75% earlier.