Nearly a week after the Reserve Bank of India (RBI) highlighted a gap in deposit and credit growth during a meeting with the top bosses of public and private sector, Bank of Maharashtra and Bank of Baroda have rolled out special tenure deposit schemes in order to fund growing demand for credit.
Bank of Baroda, now, offers two special deposit schemes for investors. One with a tenure of 333 days i.e., Monsoon Dhamaka Deposit Scheme, which offers 7.15 percent interest per annum.
The other scheme is 399-day Monsoon Dhamaka Deposit Scheme, which offers 7.25 percent interest to depositors. The latest FD interest rates came into force on July 15, 2024.
Additionally, the state lender offers 7.10 percent interest on a 360-day deposit.
The short-term deposits offer a lower rate of interest i.e., between 4.25 percent and 6.85 percent (barring 333 days and 360 days).
Similarly, Bank of Maharashtra offers four special schemes for different tenures: 200 days, 400 days, 666 days and 777 days.
The rate of interest rises with tenure with 6.9 percent for 200-day deposit, 7.10 percent for 400-day deposit, 7.15 percent for 666-day deposit and 7.25 percent for 777-day deposit.
The latest interest rates are effective from July 8, 2024. It is noteworthy that Bank of Maharashtra offers highest interest rates on special tenure deposit only. While most special tenure schemes have an interest rate in the upward of 7 percent, the other deposits offer less than 7 percent per annum.
For instance, an FD for one year offers 6.75 percent. A two-year term deposit gives an interest of 6.5 percent per annum. And the long tenure FDs i.e., for 3, 4 and 5 years also offer 6.5 percent per annum.
Two private banks raised interest rates early this month
ICICI Bank revised its fixed deposit (FD) interest rates with effect from July 2, 2024. The latest rates now range between 3 and 7.20 percent for regular citizens and 3.5 and 7.75 percent for senior citizens.
Meanwhile, Axis Bank, too, revised its rates of interest on fixed deposits starting July 1.
The interest rates of Axis Bank now range between 3 and 7.2 percent for regular citizens, and 3.5 percent and 7.75 percent for senior citizens.