In a significant move aimed at providing more flexibility and benefiting depositors, the Reserve Bank of India (RBI) has announced an increase in the limit for bulk fixed deposits from Rs 2 crore to Rs 3 crore. This change, effective immediately, means that fixed deposits (FDs) worth up to Rs 3 crore will now be classified under retail FDs. Deposits exceeding this limit will be categorized as bulk deposits. This development marks a shift from the earlier threshold, where FDs of Rs 2 crore and above were treated as bulk deposits.
In a statement regarding the revision, the RBI detailed its rationale and future provisions for various banks. “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 articulated in its review of the bulk deposit limits for scheduled commercial banks (excluding RRBs), small finance banks, and local area banks.
As banks adapt to these new regulations, they have accordingly updated their fixed deposit interest rates to attract more depositors. Here’s a look at the latest offerings from some of India’s top banks, with data sourced from Paisabazaar.
YES Bank
YES Bank has revised its fixed deposit rates as of June 8. For general customers, the FD interest rates range from 3.25% to 8% per annum, while senior citizens can benefit from rates between 3.75% and 8.5% per annum. These rates are applicable across tenures spanning from 7 days to 10 years.
Bank of India
Bank of India provides annual interest rates varying between 3% and 7.3% for its general customer base. Senior citizens enjoy slightly higher rates, ranging from 3% to 7.8%. For super senior citizens, the rates range from 3% to 7.95%. These rates cover durations from 7 days to 10 years.
Axis Bank
Axis Bank revised its FD interest rates effective from June 8, in conjunction with increasing the retail deposit threshold from Rs 2 crore to Rs 3 crore. The bank offers FD interest rates between 3% and 7.20% annually for general customers, while senior citizens receive rates ranging from 3.5% to 7.85% per annum over tenures of 7 days to 10 years.
HDFC Bank
HDFC Bank also updated its fixed deposit interest rates and the retail deposit limit. General customers are offered rates of 3% to 7.25% per annum, whereas senior citizens can benefit from rates between 3.5% and 7.75% per annum.
. These rates apply for tenures ranging from 7 days to 10 years.
ICICI Bank
ICICI Bank has not made any recent changes to its FD rates but continues to offer competitive interest rates. For general customers, the rates range from 3% to 7.2% per annum. Senior citizens receive slightly higher interest rates from 3.5% to 7.75% per annum on deposits with tenures spanning from 7 days to 10 years.
Punjab National Bank (PNB)
Punjab National Bank has revised its fixed deposit rates effective June 10, 2024, and updated the retail deposit limit. The bank offers interest rates ranging from 3.5% to 7.25% per annum for general customers. Senior citizens can avail the rates from 4% to 7.75% per annum on FD tenures extending from 7 days to 10 years.
Canara Bank
Canara Bank’s FD interest rates for general customers vary between 4% and 7.25% per annum. For senior citizens, the interest rates are slightly higher, ranging from 4% to 7.75% per annum. These rates are applicable to fixed deposits with durations ranging from 7 days to 10 years.
State Bank of India (SBI)
State Bank of India provides differing interest rates based on customer categories. For general customers, the FD interest rates range from 3.50% up to 7.10% annually. Senior citizens can benefit from even higher rates, starting at 4% and reaching as high as 7.6% per annum over tenures of 7 days to 10 years.
Punjab & Sind Bank
Punjab & Sind Bank offers fixed deposit interest rates that vary from 2.8% to 7.25% annually for general customers. For senior citizens, the rates range from 2.8% to 7.75% per annum. These rates are applicable on FD tenures from 7 days to 10 years.
With these new guidelines in place, customers have a wider array of options and more lucrative opportunities to grow their savings through fixed deposits. The decision by the RBI to raise the bulk deposit limit is anticipated to enhance flexibility for depositors and offer better returns on their investments.
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