The hike will be with effect from September 1, the bank said in a press release issued here. The bank has also increased its term deposit rates across all tenors by upto 1.75 per cent, effective from today.
While the 61-91-days tenor deposits will now earn an interest of 6 per cent as against the earlier 4.25 per cent, customers can earn up to 8 per cent on deposits with a tenor of 5-10-years as against the earlier 7 per cent, the release said.
The five-year tax advantage deposits, which allows customers to claim income tax exemption under Section 80-C has been increased to eight per cent, making it an attractive long-term investment option, the release said.
Besides, the bank has launched ING Active Deposits aimed at customers who have surplus funds, on which they would like to earn higher returns but need the security of instant liquidity.
It allows customers to decide the tenor, thus allowing them to earn better returns and enjoy the power of liquidity with the instant withdrawal feature, the release said. The instant withdrawal feature allows a customer to withdraw the deposit either at an ATM or through a cheque. If the customer needs only a portion of the funds, ING Active Deopsit is broken only for the amount withdrawn, while the balance of the term deposit continues at the original rate.
