India’s largest bank, SBI, has launched one of its highest interest rates, bearing FD: Amrit Vishti. According to the bank, the FD will offer an interest rate of 7.25% on deposits for 444 days and is open for domestic and non-resident Indian customers. They added that the interest rate for senior citizens will increase by 0.50% for the same tenure.
Dinesh Khara, chairman of SBI, stated that “SBI’s special deposit scheme is available for investment until March 31, 2025. “…(Amrit Vrishti) is a new variant of a term deposit scheme, designed to meet the requirements of a diverse range of customers. The scheme reflects SBI’s commitment to providing our valued customers with avenues to grow their wealth.”
Not only SBI but Bank of Baroda and Bank of Maharashtra have also announced their latest term deposit schemes.
Bank of Baroda’s special Monsoon Dhamaka Deposit Scheme offers two durations: 333 days with an annual interest rate of 7.15%, and 399 days with a slightly higher rate of 7.25%. This limited-time offer is ideal for parking your funds for a specific period and maximizing your gains. Additionally, Bank of Baroda offers a 360-day deposit with an interest rate of 7.10%.
Also read: SBI Life Insurance Company: Empowering Dreams
Similarly, the Bank of Maharashtra has introduced a special scheme with various tenures: 200 days, 400 days, 666 days, and 777 days. The interest rates increase with the duration of the deposit, starting at 6.9% for a 200-day deposit, 7.10% for a 400-day deposit, 7.15% for a 666-day deposit, and 7.25% for a 777-day deposit.
These schemes reflect the growing concerns over banks’ slow deposit mobilization, which results in a higher credit-deposit growth gap that the RBI repeatedly warned banks about. As per the RBI, if credit growth continues to outpace deposit growth, it could lead to systemic risk, and it is a critical need for banks to focus on boosting deposit mobilization.
