Deposit Interest Rates

Term Deposits (Domestic)

SUB: Revision in Rates of Interest on Domestic & NRO Term Deposits less than Rs 1 Crore w.e.f 16.10.2019.

Synopsis

  • Revision in Interest Rate on Domestic and NRO Domestic Term Deposits for less than Rs 1 Crore w.e.f 16.10.2019.
  • Interest rate for Bulk Deposits of Rs 1 Crore and above is to be obtained from SP&D Wing, HO.
  • All other terms and conditions detailed in our Circular No. 02/2019-20 dated 01.04.2019 shall continue.

We had, vide our Circular No. 255/2019-20 dated 01.04.2019 advised the Rates of Interest on domestic and NRO term deposits w.e.f 31.08.2019.

To keep in pace with the market trends and to give our Branches a competitive edge, the Interest rates on domestic and NRO Term Deposits less than Rs 1 Crore are revised w.e.f 16.10.2019.

The revised Rates of Interest for various maturities are furnished below:

Period of Deposit Existing RoI Revised w.e.f 16.10.2019 Revised RoI for Senior Citizen*
07 days to 14 days 4.00 3.50 4.00
15 days to 45 days 5.25 5.00 5.50
46 days to 60 days 6.00 5.50 6.00
61 days to 90 days 6.00 5.50 6.00
91 days to 120 days 6.50 6.35 6.85
121 days to 179 days 6.50 6.35 6.85
180 days to 269 days 6.50 6.40 6.90
270 days to less than 1 year 6.75 6.60 7.10
1 Year 7.00 6.80 7.30
Above 1 year upto & inclusive 2 years 7.05 6.85 7.35
Above 2 years upto & inclusive 3 years 7.10 6.90 7.40
Above 3 years upto & inclusive 5 years 7.00 6.80 7.30
Above 5 years upto & inclusive 8 years 6.80 6.60 7.10
Above 8 years upto & inclusive 10 years 6.50 6.30 6.80
Tax Saver (5 years period) 7.00 6.80 7.30
Kanaka Samruddhi (555 days)** 7.15 7.10 7.60

* Applicable only on Domestic Term Deposits.
** The minimum Amount under the scheme is Rs 50000/- and Maximum is less than Rs 1.00 Crore. For detailed guidelines on Kanaka Samruddhi refer Circular No. 91/2019-20 dated 08.04.2019.

A penalty of 1% will be levied for premature closure/part withdrawal of Domestic/ NRO Term Deposits.

Note:
1) For Staff/Ex-Staff 1.00% above offered to general public under all maturities
2) For Ex-Staff Senior Citizen1.50% above offered to general public under all maturities
3) For Staff/Ex-Staff/Retired-Staff Senior Citizens including Associations person trusts, organization etc., which consists of Staff/Ex-Staff/Retire Staff Senior Citizens, preferential rate of interest of 1 percent above offered to general public

Senior Citizen / Ex -employees / Ex-employee Senior Citizens are not eligible for additional interest for their NRO Deposits.


Other Important Points:

  • The revised rates are applicable to all fresh term Deposits (RD/FD/KDR) opened on or after 16.10.2019 and also renewal of term deposit accounts maturing on or after 16.10.2019.
  • The discretionary powers to offer rate of interest on bulk deposits of Rs. One Crore and above is vested with Head Office. Branches are advised to obtain prior permission from SP&D Wing, HO for extending rate on such Bulk Deposits (for fresh and renewal) through their RO. Branches are advised not to simply recommend higher than Card Rates. As our Card Rates across all slabs are very competitive, Branches should judiciously recommend the rates for Bulk Deposits taking into Market Trends and other Peer Bank Rates. Wherever telephonic permission is obtained, branches concerned are advised to obtain written confirmation immediately by sending letters or e mail and follow the guidelines as per Circular No. 02/2019-20 dated 01.04.2019. Rates of Interest on such Deposits shall be advised on daily basis. In case of premature closure of Bulk Deposits, the RoI payable shall be the RoI applicable for the period run minus 1%. However, the penalty clause is not applicable for cases where penalty clause is specifically waived while accepting the Bulk Deposits.
  • For Staff/Ex-Staff (as per Circular No. 02/2019-20 dated 01.04.2019) categories of Depositors who are eligible for PRI, additional 1% over and above the rate applicable for general public is extended (except for Term Deposits under NRO), irrespective of the size of the Deposit.
  • For Ex-Staff Senior Citizens (60 years and above) additional 1.50% over and above the rate offered for general public is extended for all Deposit periods (except for Term Deposits under NRO) irrespective of the size of the Deposit.
  • NRO Term Deposits: Senior Citizens are not eligible for additional interest rate for their NRO Term Deposits. Staff/ Ex-Staff / Ex-Staff Senior Citizens are also not eligible for additional interest rate for their NRO Term Deposits.
  • Recurring Deposits: The revised interest rates are applicable to Recurring Deposits also. Senior Citizens are eligible for preferential rate of Interest of 0.50% over the card rate. Staff/Ex-Staff are eligible for Preferential Rate of 1% over and above the rate offered for general public on their Recurring Deposits. Ex-Staff Senior Citizens are eligible for additional rate of 1.50% over and above the rate offered for general public on their Recurring Deposits.
  • A penalty of 1% shall be levied for pre-mature closure / part withdrawal. The relevant clause out of the following should invariably be mentioned in the Deposit Receipt either manually or by affixing a rubber stamp: “For premature closure/part withdrawal of Domestic / NRO Term Deposits, the Bank imposes a penalty of 1%. Such pre-maturely closed/part withdrawn deposits will earn interest at 1% below the rate as applicable as ruling on the date of deposit and as applicable for the period run or 1% below the rate at which the deposit has been accepted whichever is lower”. However, no interest will be payable on Term Deposits prematurely closed/prematurely extended before completion of 7th day including those of Staff/Ex-Staff/Ex-Staff Senior Citizen.
  • A penalty of 1% is waived in case of extension of Deposit / premature closure when the entire proceeds of the closed A/c are reinvested on the date of closure itself with the Branch. In this case, the interest shall be paid at the base rate applicable for the actual period run provided the maturity date of the extended / reinvested Deposit shall not be earlier than original maturity date. However, in case of reinvestment of partial amount of the proceeds of the closed A/cs, penal cut at 1% shall be applied to the uninvested portion of the proceeds.
  • No penalty is applicable for premature closure / part withdrawal of Domestic and NRO Term Deposits of Staff/Ex-Staff and Ex-Staff Senior Citizens.

Except changes made in this circular all other extant guidelines on rate of interest on deposits furnished in our Circular No.02/2019-20 dated 01.04.2019 remain unchanged.

We hope, Branches would take advantage of our very competitive interest rates and strive their best to mobilise more and more Deposits. Branches are also called upon to give wide publicity for our interest rates on Deposit.

Branches are advised to take out a print out of Annexure to this Circular and display the same in their Notice Boards.


Premature closure & reinvestment/Extension of TDs- Waiver of penal rate:

In case of extension of Deposit or premature closure & reinvestment of entire proceeds, the penalty of 1% is waived and the interest shall be paid at the base rate applicable for the actual period run. However, this is subject to condition that the maturity date of the extended / reinvested Deposit shall be greater than original maturity date. However, in case of reinvestment of partial amount of the proceeds of the closed A/cs, penal cut at 1% shall be applied to the un-invested portion of the proceeds.

No interest shall be payable on Term Deposits prematurely closed before completion of 7th day.

Overdue Deposits (i.e., matured deposits) will be paid interest at Savings Bank rate from the date of maturity till the date of payment/reinvestment.

Auto Renewal facility is not available for Tax Saver Deposits and Kanaka Samruddhi Deposits.

No VSL shall be granted against Tax Saver Deposit and no premature closure is allowed under the Tax Saver scheme.

Term Deposits (Non-Resident)

SUB: Revision in Interest Rates on NRE Deposits w.e.f 16.10.2019.

The Rates of Interest on NRE Term Deposits stand revised w.e.f 16.10.2019 as under :

Period of Deposit Rate of Interest
1 Year 6.80%
Above 1 Year upto & inclusive 5 years 6.80%
Above 5 Years upto & inclusive 8 Years 6.60%
Above 8 Years upto & inclusive 10 Years 6.30%
  • The revised Interest rates are applicable to fresh NRE Term Deposit accounts accepted / renewed on or after 16.10.2019.
  • The maximum period for accepting NRE Term Deposits is 10 years. However, the minimum period for accepting NRE Term Deposits is One Year.
  • Senior Citizens are not eligible for additional Interest rate for their NRE Term Deposits
  • .Employees / Ex-employee / Ex-employee Senior Citizens are not eligible for preferential rate of Interest for NRE Term Deposits.
  • For single NRE Term Deposit of Rs 1 crore and above, Branches are instructed to take up the matter with Strategic Planning & Development Wing, Head Office for permission to accept the Deposits.
  • .For premature closure of NRE Term Deposits on or after completion of 1 year from the date of Deposit, 1% penal cut is applicable. Such prematurely closed Deposit will earn interest at 1% below the rate as ruling on the date of Deposit for the period run.
  • However, where NRE Term Deposit is closed before maturity before completion of one year from the date of Deposit, no Interest shall be payable for the period run.

All branches / offices are requested to note the contents of this Circular and display the revised Interest rates on their Notice Boards.