Interest rates on short term deposits

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Interest rates on short term deposits
Short-term deposits of banks are meant for risk-averse individuals who intend to liquidate their investment in a maximum investment horizon of 6 months- 1 years time. In a move to battle, liquidity concerns in the system, several banks have revised interest rates upwards on short term deposits to mobilize funds. And as the cost of funds for short-term borrowing for banks has risen, banks prefer to deploy funds from general public at a lower rate.

So, in the expectation that high rates on short term deposits would continue to be offered for a couple of months, retail investors can lock in their money in these deposits.

The lists include the interest rate being offered by different banks on short-term deposits for deposit amount less than Rs 1 crore and above:


Bank Tenure Interest rate for deposits less than Rs. 1 crore Interest for senior citizens Interest rates for deposits over Rs 1 crore
Corporation Bank 30-180 days 9.00% - 9.50%
State Bank of India 180 days 6.50%
- -
Punjab National Bank 91.179 days
6.75%
- 8.00%
Indian Overseas Bank 121-179 days 7.50% 8.00% 9.25%
ICICI Bank 61-180 days
7.75% 8.25%
-
HDFC Bank 91 Days to less than 6 months 8.50%
9.00% -
Yes Bank 3 months to less than 6 months 8.50% 9,25% -
IDBI Bank

46 days -200days

91 days to less than six months

8.50%

7.25%

- -
Deutsche Bank
100 days

181- 270 days

8.75%

8.75%

- -
Canara Bank 91-179 days


7.30%
7.80% -

Story first published: Thursday, September 19, 2013, 13:00 [IST]
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