Business

Banks Revise Deposit Schemes Amid Ongoing Liquidity Shortage

The battle for deposits continues as the banking sector faces ongoing liquidity challenges. In response, major banks are adjusting their rates through special tenures, senior citizen benefits, and bulk deposit schemes. Recently, IDBI Bank and Bank of Baroda have introduced new offerings to attract more deposits.

IDBI Bank has launched the ‘IDBI Chiranjeevi-Super Senior Citizen FD,’ a fixed deposit scheme tailored for individuals aged 80 and above. This new product offers a 65 basis point (bps) increase over the bank’s standard fixed deposit rates and 15 bps over the rates for senior citizens. The scheme, effective from January 13, 2025, provides attractive interest rates: 8.05% for a 555-day tenure, 7.9% for 375 days, 8% for 444 days, and 7.85% for 700 days.

Bank Of Baroda Unveils Liquid Fixed Deposit Scheme

In a bid to enhance deposit offerings, Bank of Baroda has launched a liquid fixed deposit scheme. Customers can now withdraw in units of Rs 1,000 after an initial deposit of Rs 5,000, with subsequent deposits in multiples of Rs 1,000. Retail deposits, defined as those under Rs 3 crore, come with different conditions from bulk deposits, which are for amounts above this threshold.

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The scheme allows customers to choose tenures ranging from 12 to 60 months, with interest rates that fluctuate based on current market conditions. Senior and super senior citizens benefit from additional interest, including an extra 0.5% for deposits up to three years and 0.6% for deposits over three years and up to five years. Super senior citizens enjoy an additional 0.1% for deposits longer than one year.

Growing Focus On Senior Citizens And Flexible Deposit Options

Both IDBI Bank and Bank of Baroda are placing a strong emphasis on senior and super senior citizens, offering them additional benefits as part of their efforts to attract deposits. These new schemes reflect the ongoing adjustments banks are making to combat liquidity shortages and cater to diverse customer needs.

Richa Kaushik

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