Bank of Maharashtra Boosts Fixed Deposit Interest Rates
FD interest rate: In a significant move to attract and retain its customer base, the Bank of Maharashtra, a notable public sector bank, has increased its Fixed Deposit (FD) interest rates. Now, customers can benefit from an interest rate hike of up to 1.25%, offering an enhanced opportunity for those looking to park their money in a fixed deposit scheme. The newly revised rates came into effect from October 12.
This decision of the Bank of Maharashtra to elevate the interest rates specifically targets fixed deposits and their special schemes. Notably, deposits with a tenure ranging from 46 to 90 days will see an increment of 1.25% in their interest rate.
However, the banking sector has observed mixed actions regarding FD rates. On one side, Bank of Baroda, another public sector entity, introduced an increase in its FD interest rates by 50 basis points (0.50%) for various tenures up to three years, effective from October 9. On the contrary, the private-sector YES Bank implemented reductions in its FD rates. For deposits less than ₹2 crores, selected tenures witnessed a cut of up to 25 basis points.
The augmented rates by the Bank of Maharashtra are anticipated to invigorate both individuals and businesses to invest more in savings. According to the updated structure, the bank will offer an interest of 6.50% on deposits for a tenure of one year. For deposits spanning more than a year, the rates have been raised by 0.25%, bringing it to 6.25%. Adding to its slew of customer-centric decisions, the bank stated that senior citizens will receive an additional 0.50% interest on their FDs. They will be eligible for a special deposit scheme offering an attractive 7.5% interest rate for a duration between 200 to 400 days.
In the broader banking context, HDFC Bank, a prominent player in the private sector, also made adjustments to its FD rates. Starting from October 1, for deposits maturing anywhere between 7 days to 10 years, HDFC is providing interest rates ranging from 3% to 7.20%. Furthermore, senior citizens have been given special attention with offers ranging between 3.5% to 7.75%.
These revisions in FD rates reflect the bank’s strategies in managing their funds while also aiming to lure customers amidst a competitive banking environment. As always, potential depositors should carefully consider the available options and align them with their financial objectives.
