The RBI revisiting the bulk deposit rules has much significance in a sense that interest rates on retail deposits and bulk deposits are not same. Post RBI announcement on bulk deposit rules, many banks have revised the FD rates on various tenors.
Bank fixed deposit rates: The Reserve Bank of India (RBI) recently announced raising the threshold for bulk fixed deposits to Rs 3 crore from the earlier Rs 2 crore. So, now your FDs worth up to Rs 3 crore will be considered as retail FD and above that mark will be categorised as bulk FD. Earlier, FDs of Rs 2 crore were considered as bulk deposits.
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“The bulk deposits limit was enhanced in the year 2019 for Scheduled Commercial Banks (SCBs) (excluding Regional Rural Banks) and Small Finance Banks (SFBs) as ‘Single Rupee term deposits of Rs 2 crore and above’. In a review, it is proposed to revise the definition of bulk deposits as ‘Single Rupee term deposits of Rs 3 crore and above’ for SCBs (excluding RRBs) and SFBs. Further, it is also proposed to define the bulk deposit limit for Local Area Banks as ‘Single Rupee term deposits of Rs 1 crore and above’ as applicable in case of RRBs. Necessary guidelines will be issued shortly,” the RBI said on review of limit of bulk deposits for scheduled commercial banks (excluding RRBs), small finance banks and local area banks.
The RBI revisiting the bulk deposit rules has significance in a sense that interest rates on retail deposits and bulk deposits are not same.
Take a look at the interest rates on FDs of these top banks that have updated their retail deposits from Rs 2 crore to Rs 3 crore. Data is sourced from paisabazaar.
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YES Bank
YES Bank, which revised its fixed deposit rates from June 8, offers FD interest rates of 3.25%-8% per annum for general customers and 3.75-8.5% per annum for senior citizens on tenures spanning 7 days to 10 years.
Bank of India
Bank of India is offering general customers interest rates of 3%-7.3% per annum to regular citizens, 3%-7.8% per annum to senior citizens and 3%-7.95% per annum to super senior citizens on tenures ranging from 7 days to 10 years.
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Axis Bank
Axis Bank revised FD interest rates, effective June 8. The bank also updated the retail deposit amount from Rs 2 crore to Rs 3 crore. The bank offers FD interest rates of 3-7.20% annually to the general customers and 3.5%-7.85% per annum to senior citizens on tenures ranging from 7 days to 10 years.
HDFC Bank
HDFC Bank has revised fixed deposit interest rates and also updated the retail deposit limit from Rs 2 crore to Rs 3 crore. The bank offers rates of 3-7.25% per annum on fixed deposits for general customers and 3.5%-7.75% per annum to senior citizens. The FD tenures are ranging from 7 days to 10 years.
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ICICI Bank
The private sector lender has not revised its FD rates and is offering general customers FD interest rates of 3% to 7.2% per annum and 3.5%-7.75% per annum to senior citizens, on tenures of 7 days to 10 years.
Bank of Baroda
Bank of Baroda too has revised FD rates from June 12 and updated the retail deposit limit from Rs 2 crore to Rs 3 crore, after the RBI announcement. The PSU lender offers FD interest rates of 4.25%-7.25% per annum to the general public and 4.75%-7.75% per annum to senior citizens on tenures spanning from 7 days to 10 years.
Punjab National Bank (PNB)
Punjab National Bank has also revised FD rates and updated the retail deposit amount. Its FD rate changes are effective from June 10, 2024. The lender offers interest rates of 3.5%-7.25% per annum on fixed deposits for general customers and 4%-7.75% per annum for senior citizens on tenures ranging from 7 days to 10 years.
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Canara Bank
The PSU bank is providing FD interest rates of 4%-7.25% per annum to the general public and 4-7.75% per annum to senior citizens. These FD rates are applicable on on tenures ranging from 7 days to 10 years.
State Bank of India (SBI)
SBI is offering fixed deposit interest rates of 3.50%-7.10% per annum to general customers and 4%-7.6% per annum to senior citizens for tenures ranging from 7 days to 10 years.
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Punjab & Sind Bank
Punjab & Sind Bank is offering fixed deposit interest rates of 2.8%-7.25% per annum to regular citizens and 2.8%-7.75% per annum to senior citizens on tenures ranging from 7 days to 10 years.
Disclaimer: The above content is for informational purposes only. Readers are advised to consult qualified financial advisors before making any investment decision.
