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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% | - |