In a strategic move, Bank of India has launched the Super Special Fixed Deposit, featuring a remarkably attractive interest rate of 7.50% per annum.
This lucrative opportunity is open to both existing customers and the general public, focusing on deposits ranging from ₹2 Crores to less than ₹50 Crores.
The fixed deposit comes with a specific maturity period of 175 days, commencing from January 1st, 2024.
A Golden Opportunity for High Net Worth Individuals (HNIs) and Corporates
The Super Special Fixed Deposit presents an exceptional chance for High Net Worth Individuals (HNIs) and Corporates to park their surplus funds for a short-term duration.
With an impressive yield of 7.50% per annum over a 175-day period, this fixed deposit emerges as one of the most enticing options for short-term investments, surpassing other alternatives with similar tenures.
It’s essential to note that this special fixed deposit exclusively caters to domestic rupee term deposits. Additionally, the offer is time-limited, further enhancing its exclusivity.
Additional Benefits for Senior Citizens
For senior citizens aged 60 years and above but below 80 years, there’s an extra benefit.
They are entitled to receive an additional interest rate of 0.50% on their retail term deposits (below ₹2 Crores) for tenors ranging from 6 months to 3 years.
Super senior citizens aged 80 years and above are in for an even higher bonus. They qualify for an additional interest rate of 0.65% on retail term deposits falling within the same tenor range.
Industry Trends and Competition
This move follows recent interest rate hikes on fixed deposits by State Bank of India (SBI), setting a trend in the banking sector.
Other players like Federal Bank, Kotak Mahindra Bank, and DCB Bank also raised interest rates on term deposits in December 2023.
Axis Bank joined the fray, making revisions to its fixed deposit interest rates for amounts below ₹2 Crore, as detailed on their official website.
Remarkably, despite the Reserve Bank of India (RBI) maintaining the key repo rate at 6.5% for the fifth consecutive time during the December 8th MPC meeting, the industry has witnessed a positive trend with these strategic interest rate adjustments.
The competitive landscape is evolving, and banks are making customer-centric moves to attract deposits amidst the prevailing economic scenario.
