Deregulation of interest rates

Deregulation of interest rates

In the wake of deregulation of interest rateson savings bank deposits by Reserve Bank of india

Many banks have announced upward revision in interest rates on savings deposits, some banks

Are however taken a novel way of rewarding there depositors. They have come out with a new term unfixed deposits scheme. Not just that they will get full liquidity on their deposits. Unlike the conventional fixed deposits ‘ un fixed deposits ’ allow depositors to withdraw money any time prior notice and without losing out  on interests.

Karur Vysya bank has come out with a product- flexi term deposit- a high return short term flexible deposit. The interest rate offered by the bank is 9 % , but the minimum amount deposit is 15 Lakh and tenor is 300 days. If one with draws the deposit amount any time  after 15 days of opening the term deposit there will be no penal interest or penalty.

The State Bank of India on its part has come out with unfixed deposits offering interest rate 8.5%, it has fixed a higher minimum amount of 1 crore and above. The period ranges from 7 days to 180 days.

Yes Bank is offering 9.6percent on deposits of 15 months 22 days to 15 months 26 days  (which in clued 480 days ).

Saraswat co-op bank has launched a term deposit scheme ( Bonanza 11 ) for 2 years only for which it offers 10.25% for all categories  of depositors. It offers 9% for deposits of 180 days only.