Money & Banking
IDBI Bank has decided to increase the interest rate on retail term deposits (TDs) of less than Rs. 2 crore by 10-25 basis points with effect from June 15, 2022.
The private sector bank will offer 4 per cent (3.75 per cent earlier) and 5.60 per cent (5.50 per cent) interest on term deposits in the “91 days – 6 months” and “3 years to less than 5 years” maturity buckets, respectively.
Term deposits in the “five years”(including tax savings TD) and “more than 5 years and up to 7 years” maturity buckets will fetch 5.75 per cent interest (5.60 per cent) each.
Term deposits of “more than 7 Years and up to 10 years” maturity will earn 5.75 interest (5.50 per cent).
The bank, in a statement, said interest rates on “Naman Senior Citizen Deposit”(of three years to 10 years maturity) carry a mark-up 0.75 per cent over the card rate.
The revised rates would be applicable across various tenors for domestic term deposits, Non-Resident Ordinary (NRO) and Non Resident External (NRE) term deposits, per the statement.
Suresh Khatanhar, Deputy Managing Director, IDBI Bank, observed that in the present scenario of volatility in the financial markets as well as uncertainty globally and rising inflation, fixed deposit remains the most preferred and safe investment.