Banks revise interest rates on fixed deposits

After the problem of liquidity crunch started being felt in the market, the banks and financial institutions have revised the interest rates offered on fixed deposit of various tenures. According to the available data, all the banks have increased the interest rates on fixed deposit. And the highest increase is as much as 225 basis points. Everest Bank has revised the interest rates on fixed deposits twice within a fortnight, increasing the interest rates on fixed deposit by 200 to 225 basis points.

Standard Chartered Bank’s rates are found to be the lowest on all deposits. Everest Bank has increased the rate the highest. For the fixed deposits of one month to six months, it raised the rate by 200 to 225 basis points making it 5%. Nepal Investment Bank, Sunrise Bank, Siddhartha Bank and Prime Bank have maintained the same rate as earlier on the one month fixed deposits. For the period of three months, Laxmi and Nabil both have increased the rate by 125 basis points. For the tenure of six months, Nabil Bank has increased the rate by 150 basis points.

On one year fixed deposit, Everest Bank, Nepal Investment Bank, Laxmi Bank and Prime Bank offer the highest interest rates. Machhapuchhre Bank and Bank of Kathmandu have both raised the rate on this tenure by 150 basis points while Everest Bank marked the highest increase by 200 basis points.

For the tenure of two years, Everest Bank, Nepal Investment Bank, Prime Bank and Laxmi Bank offer the highest interest rates. Bank of Kathmandu, Himalayan Bank, Laxmi Bank and Nabil Bank have raised the interest rates by 150 basis points for the tenure of 2 years. Kumari Bank, Laxmi Bank, Everest Bank, Nepal Investment Bank and Prime Bank offer the highest interest rates on fixed deposits of three years and above.