Banks can offer higher interest rates on deposits of over Rs 15 lakh wherein the customers do not withdraw prematurely, according to the Reserve Bank of India (RBI).
According to the HDFC Bank website, “The Fixed Deposits does not have any premature withdrawal facility i.e. the Fixed Deposits cannot be closed by the depositor before expiry of the term of such deposit.”
Here is a comparison of non callable FD interest rates for amounts between Rs 1 crore to Rs 2 Crore offered by Canara Bank and Bank of Baroda.
The State Bank of India (SBI), last year, launched its non-callable term deposits called SBI ‘Sarvottam’ for deposits above Rs 1 crore.
Under the “Sarvottam” term deposits, the bank is providing depositors with a rate of interest of 7.40% for a two-year period. The deposit rate is 7.10% for a one-year term.
Senior people will receive an extra 50 basis points (bps) of interest on top of what is offered to ordinary depositors. For a two-year deposit and a one-year deposit, they will earn interest rates of 7.90% and 7.60%, respectively.The bank is providing depositors with a rate of interest of 7.05% for one year to two year and 7.40% on 444 days. The deposit rate is 7% on 2 years & above to less than 3 years for regular citizens.
For senior citizens, the bank offers 7.55% for a one year to two year and 7.90% on 444 days. The deposit rate is 7.50% on 2 years & above to less than 3 years. The minimum single deposit should be between Rs 1 crore & below Rs 2 crores.Bank of Baroda is offering an interest rate 7% interest on tenure from 1year to 2 years and 7.40% for tenure above 2 Years and up to 3 Years for regular citizens. For senior citizens, the bank offers interest rate of 7.50% interest on tenure from 1year to 2 years and 7.90% for tenure above 2 years and up to 3 years.
The minimum single deposit should be between Rs 1core to below Rs 2 crores.
