BoB, SBI launch special FD schemes

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New Delhi: In a competitive bid to attract funds from the general public, banks across India have intensified their efforts by offering lucrative interest rates on Fixed Deposits (FDs). This move comes amid rising interest in safe investment avenues amidst fluctuating market conditions.

Leading the charge is the State Bank of India (SBI). It is country’s largest public sector bank. It has launched a new 444-day deposit scheme offering a substantial annual interest rate of 7.25% for the general public. Compared to their existing Amrit Kalash scheme, which currently yields 7.10% over 400 days, this new offering presents a 0.15% higher return. Also, senior citizens who typically enjoy preferential rates, can benefit from an additional interest margin of up to 0.50%.

Not to be outdone, Bank of Baroda (BoB), India’s second-largest public sector bank, has introduced the BoB Monsoon Dhamaka Deposit Scheme. This initiative provides customers with a choice between two tenure options. Under this scheme, a 399-day FD offers an annual interest rate of 7.25% for the general public. While a slightly shorter tenure of 333 days fetches an interest rate of 7.15%. Commencing from July 15, 2024, this scheme also includes a non-callable FD variant. This ensures that deposited funds cannot be withdrawn prematurely.

Additionally, Bank of Baroda has revised its broader FD interest rate structure to cater to varying customer needs. This revision spans interest rates ranging from 4.25% to 7.25% across FDs with durations ranging from 7 days to 10 years.

Other banks in the league…

Meanwhile, Bank of Maharashtra has rolled out its own special scheme, featuring four distinct options tailored to customer preferences. Noteworthy rates include 6.90% for a 200-day FD, 7.10% for a 400-day FD, 7.15% for a 666-day FD, and 7.25% for a 777-day FD. These competitive rates apply to FDs below the 3 crore rupee mark.

Investors seeking stable returns with minimal risk are increasingly turning to Fixed Deposits amidst the current economic uncertainties. Some smaller savings banks are even offering interest rates nearing 9% on FDs. This showcases FDs as a viable alternative to traditional small savings schemes and debt mutual funds. On one hand, debt mutual funds project estimated returns ranging between 7% to 7.5%. On the other hand, FDs continue to hold sway with their consistent performance and reliability in uncertain times.