MUMBAI: The competition for deposits among banks shows no signs of slowing as liquidity shortages persist in the banking system. Leading banks are introducing special tenures, benefits for senior citizens, and bulk deposit schemes to attract depositors. The latest developments include IDBI Bank’s launch of higher rates for super senior citizens and Bank of Baroda’s liquid fixed deposit scheme.
IDBI Bank has introduced the ‘IDBI Chiranjeevi–Super Senior Citizen FD’, a fixed deposit product tailored for individuals aged 80 and above. This scheme offers an additional 65 basis points (bps) over the standard fixed deposit rates and 15 bps more than the senior citizen rates. The scheme provides the following interest rates:
- 8.05% for a 555-day tenure
- 7.9% for 375 days
- 8% for 444 days
- 7.85% for 700 days
The scheme takes effect on January 13, 2025.
Meanwhile, Bank of Baroda has launched a liquid fixed deposit scheme allowing customers to withdraw in units of ₹1,000 after an initial deposit of ₹5,000, with subsequent deposits also required to be in multiples of ₹1,000. Deposits below ₹3 crore are classified as retail deposits, while those exceeding this amount are treated as bulk deposits.
The tenure for these deposits ranges from 12 to 60 months, with interest rates linked to prevailing rates. Additional benefits are available for senior and super senior citizens. For example:
- Senior citizens receive an extra 0.5% on deposits up to three years and 0.6% for deposits over three years and up to five years.
- Super senior citizens (80 and above) receive an additional 0.1% on deposits with a tenure exceeding one year.
These tailored schemes reflect banks’ efforts to address liquidity challenges and attract diverse customer segments.
