SBI Vs Bank Of Baroda: Green Term FDs, Check Interest Rates, Eligibility, Tenure, Other Key Features

Go Green With Your Money! Traditional old fixed deposit schemes with time have advanced and offer lucrative returns. One of such is green rupee term deposits, an environment-friendly scheme that finances projects and sectors. In recent times, major PSU banks like the State Bank of India (SBI) and Bank of Baroda have launched their own special green fixed deposit schemes.

As per RBI's framework issued in April 2023, green deposits enable banks to mobilise funds for financing green activities and projects and developing a green finance ecosystem in the country. As such, the amount mobilised under Green Deposit can be used to finance eligible green activities/projects only.

Accordingly, SBI has introduced the "SBI Green Rupee Term Deposit", while Bank of Baroda launched its own bob Earth Green Term Deposit Scheme earlier this week.

Here are the key details of both Bank of Baroda and SBI's Green Deposit schemes.

bob Earth Green Term Deposit Scheme:

In its statement, the Bank of Baroda said that the Bob Earth Green Term Deposits offer depositors the opportunity to earn attractive interest rates on a range of tenors and participate in India's transition to a green and sustainable economy.

Eligibility: The General Public/Resident Indians, NRIs and High Net worth Individuals (HNI) investors are all eligible to invest in the bob Earth Green Term Deposit scheme.

Tenures: The bank has introduced some innovative tenures that act as a reminder of the planet's Climate & Sustainability goals, such as Tenure 1.5 years- signifying the aim to limit global temperature rise to 1.5 degrees Celsius above pre-industrial levels and Tenure 1717 days - doubly emphasising the United Nations' 17 Sustainable Development Goals.

Interest Rates: The highest interest rate offered by BoB is 7.15% on 777 days tenure. The bank is offering a 6.40% rate on three specified tenures namely 1,111 days, 1,717 days, and 2,201 days. Lastly, an interest rate of 6.75% can be earned in 12 months and on 1.5 years (18 months) tenure.

Deposit Limit: This green deposit scheme can be opened with a minimum amount of Rs 5,000 to below Rs 2 crore.

Green Projects: The bank has said that it will allocate the funds used from bob Earth on eligible green projects/sectors such as Renewable Energy, Clean Transportation, Sustainable Water and Waste Management, Energy Efficiency, Climate Change Adaptation, Pollution Prevention and Control, Green Buildings, Biodiversity Conservation etc.

Both existing and new customers of the bank can open a Green Deposit through any of the Bank's branches across India.

SBI Green Rupee Term Deposit:

Senior citizens are the biggest beneficiaries here as SBI is offering a high 7.40% rate on retail green deposits on the highest tenure of 2,222 days. There are three tenures in SBI's green deposit scheme.

Eligibility: Resident Individuals, Non- Non-Individual and NRI Customers (In the case of NRI Customer the product shall be available in NRO and NRE deposit).

Tenures: SBI's green deposits have three tenures share as 1,111 days, 1,777 days, and 2,222 days.

Interest Rates: In retail green term deposits, SBI is offering a 6.65% rate each on 1,111 days and 1,777 days tenure, while the rate is at 6.40% on 2,222 days tenure to the general category. In the case of bulk deposits, the rates are 6.15% each on 1,111 days and 1,777 days for general individuals, while the rate is 5.90% on 2,222 days.

On the other hand, senior citizens earn up to 7.15% on 1,111 days and 1,777 days tenure under retail deposits, while the interest rate jumps to 7.40% on 2,222 days tenures. For bulk deposits, the rate is 6.65% on 1,111 days and 1,777 days for elderlies, and 6.40% on 2,222 days.

Deposit Limit: The minimum deposit amount could be Rs 1,000 for opening the account, and there is no maximum limit.

Pre-mature withdrawal: As per guidelines applicable for premature withdrawal of normal Time Deposit.

Loan facility: Overdraft/ Demand Loan/ facility available Green Deposit is allowed.

Product availability: Initially the product is available through branch channel. Product shall be made available through INB and YONO app shortly.

Disclaimer: The write-up is for information purposes, and is not a recommendation to invest. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.