Fixed deposits comprise the biggest attraction of a bank to mobilise deposits since they offer the highest interest rates to the public through these instruments which is far higher than that offered by savings accounts.
Over the past several months, Indian banks are offering their highest rate of interest in FDs that bear fixed tenures. Both Bank of Maharashtra and Federal Bank are no exceptions to this trend. FDs constitute a significant tool for banks to acquire liquidity for onward lending to the retail and business sectors.
Bank of Maharashtra is a public sector bank. Its origins can be traced back to 1840 when it became the first commercial bank of what later became the financial capital of India. This PSU bank has 4 fixed tenure. Private sector Federal Bank was set up in April 1931 in Travancore (now in Kerala) and was earlier known as the Travancore Federal Bank. This lender, too, offers 4 fixed tenure FDs to the public.
Federal Bank, Bank of Maharashtra FD rates
The shortest fixed tenure FD is offered by Federal Bank which matures in 181 days. It offers 7% for the senior citizens and 6.5% for the general customers. The shortest tenure from the stable of Bank of Maharashtra has a duration of 200 days. It fetches 6.9% for those under 60 years and 7.4% for those above 60.
400-day FD
Both banks have 400-day FDs. Bank of Maharashtra offers 7.1% to general customers and 7.6% to senior citizens, while Federal Bank offers 7.85% for senior citizens and 7.35% for non-senior citizens.
777-day FD
Both banks offer FDs that mature in 777 days, which is a little more than 2 years and 1 month. The rates of interest are 7.25% (general customers) and 7.75% (senior citizens) for Bank of Maharashtra. Federal Bank offers rates of 7.4% for those under 60 and 7.9% for those above it.
666-day and 50-month FD
Bank of Maharashtra has a 666-day FD on which it offers 7.15% interest for general customers and 7.65% for senior citizens. The longest fixed tenure FD is offered by Federal Bank that matures in 50 months. It pays 7.4% for general customers and 7.9% for senior citizens.
Both Bank of Maharashtra and Federal Bank have 4 fixed deposits of fixed tenures. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
