Green Deposit Showdown: SBI Vs Bank Of Baroda Interest Rates

The State Bank of India (SBI) and the Bank of Baroda (BoB) have launched special fixed deposit (FD) schemes aimed at supporting environment-friendly initiatives and projects. These green deposit schemes, introduced in response to the Reserve Bank of India's notification, aim to mobilise funds towards green finance.

What are Green Deposits?

Green deposits are interest-bearing deposits received by regulated entities, with the funds designated for allocation towards green finance projects as per the RBI's guidelines.

Tenors of SBI, BoB Green Term Deposit

SBI's Green Rupee Term Deposit (SGRTD) offers investors the flexibility to choose from three distinct tenors: 1111 days, 1777 days, and 2222 days. On the other hand, BoB's Earth Green Term Deposit Scheme introduces innovative tenures including 1 year, 1.5 years, 777 days, 1111 days, 1717 days, and 2201 days.

Interest Rates: Day-wise Comparison

Let's delve into the day-wise interest rates offered by both SBI and BoB:

Day 1:

SBI SGRTD:
1111 Days: 6.65%
1777 Days: 6.65%
2222 Days: 6.40%
BoB Earth Green Term Deposit:
1 year (12 months): 6.75%
1.5 years (18 months): 6.75%

Day 2:

BoB Earth Green Term Deposit:
777 days: 7.15%

Day 3:

SBI SGRTD:
2222 Days: 6.40%
BoB Earth Green Term Deposit:
1111 days: 6.40%
1717 days: 6.40%
2201 days: 6.40%

Review

Both SBI and BoB offer competitive interest rates for their green fixed deposit schemes. SBI provides a range of tenures with slightly lower interest rates compared to BoB, while BoB offers additional flexibility with innovative tenures and higher interest rates on certain durations. Investors seeking to support environmental causes while earning attractive returns can consider either of these green deposit schemes based on their preference for deposit terms and interest rates. However, it's essential for investors to thoroughly evaluate their financial goals and risk tolerance before making any investment decisions.