For the month of September 2024, a few banks have raised interest rates offered to the retail customers ie, FDs where less than Rs 3 crore is deposited. Four banks that took recourse to this tactic to attract deposits are public sector Bank of Baroda (BoB) and Bank of India (BoI) and two private sector banks such as City Union Bank and Karnataka Bank.
Both City Union Bank and Karnataka Bank are old private sector banks of the country. While City Union Bank was set up in 1904, Karnataka Bank is observing its centenary this year.
BoB and BoI
Bank of Baroda (BoB) revised FD interest rates all amounts below Rs 3 crore, which are known as retail deposits. The lowest rate of interest offered for an FD is 4.25% for tenure of 7 to 14 days to a general customer. A senior citizen would get 4.75%. The highest rate is 7.80% for an FD of fixed tenure of 399 days. This FD is branded as BoB Monsoon Dhamaka Plus Deposit Scheme. The rates were made effective from September 6, 2024.
BoI is offering the highest rate of 7.75% for senior citizens on FDs of fixed tenure of 333 days labelled as Star Dhan Vriddhi. This bank has got special rate for super senior citizens (more than 80 years) which is 7.90% for the 333-day-FD. The rate for those who are yet to reach 60 is 7.25%. At the lowest of the tenure slabs – 7 to 14 days – the rate of interest offered by this bank is 3% for both senior and non-senior citizens. The rates have been effective since the first day of September 2024. Please note that BoI has discontinued the 666-day-FD.
City Union Bank, Karnataka Bank
From September 3, Karnataka Bank revised FD interest rates for retail deposits. It now offers rates starting from 3.50% and ending at 7.50% for those under 60. For senior citizens, it is offering rates between 3.75% and 8%. This bank too offers the peak rate of 7.50% (non-senior citizens) and 8% (senior citizens) on a fixed term FD of 375 days.
This 120-year-old City Union Bank has revised interest rates from September 1. The rates now range between 5% and 7.50% for those depositors below 60 years and 5% and 8% is offered to those above 60 years. The highest rate of 7.5% is reserved for non-senior depositors for a 333-day-FD while senior citizens get 8% for the same tenure.
Though the interest rate cycle has certainly peaked in India, some banks are still raising interest rates to attract deposits from common people, more and more of whom are turning to mutual funds and the equity markets. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
