Diwali offer: This bank is offering 8.25% interest on fixed deposits in Nov

Ahead of Diwali, a number of banks have opened their treasure trove, offering higher returns, special discounts, and a variety of other deals. Mumbai-based SBM Bank India, a subsidiary of the State Bank of Mauritius, has introduced an exclusive Diwali Special Fixed Deposit (FD) rate of 8.25 per cent per annum.

The limited-period FD scheme is available for resident Indians and NRIs. The Diwali Special FD rates of 8.25 per cent p.a. will be available for a specific tenure from November 3 to November 17, 2023. 

This offer is applicable for amounts less than Rs 2 crore, for both Callable and Non-Callable FDs. Callable FDs allow the issuing bank to redeem the deposit before maturity, while non-callable FDs ensure the deposit remains locked until maturity, providing stability for investors.

 

“This special offer is exclusively for a limited time and caters to the financial needs and aspirations of those individuals who seek secure and best-in-class returns on their investments,” said the bank in a statement. 

What does the Diwali Special Fixed Deposit offer?

In this festive scheme, individuals can enjoy the following rates:

1. Tenure of more than 3 years 2 days to less than 5 years: 8.25 per cent p.a.
2. Duration of 391 days to 15 months: 8.10 per cent p.a.

Furthermore, as a gesture of respect and appreciation for senior citizens, SBM Bank India is extending an additional 0.5 per cent benefit on the Diwali Special FD rates, only for resident Indian senior citizens.

Apart from the special offer, SBM Bank India also offers FDs with up to 7.75 per cent interest rate for a tenure spanning up to 10 years. The bank also provides an additional 0.5 per cent for senior citizen FDs. 

Source: SBM Bank India

Fixed deposits (FDs), deemed low-risk investments, involve depositing a sum with a bank for a specified tenure, with the bank offering a guaranteed interest rate. Senior citizens, aged 60 and above, often enjoy higher returns and additional benefits with FDs tailored for them. 

Several small finance banks (SFBs) are capitalising on this, enticing investors with interest rates of up to 9 per cent. Unity Small Finance Bank leads the way, providing a 9.5 per cent interest rate to senior citizens for a 1001-day fixed deposit as of October 25, 2023. Other SFBs, including Equitas, Esaf, Survoday, Jana, Fincare, and Utkarsh, offer interest rates ranging from 9 per cent to 9.11 per cent on senior citizen fixed deposits. The trend is spurred by successive interest rate hikes by the Reserve Bank of India (RBI), bolstering FDs as a robust investment avenue.

Leading private banks like ICICI Bank and HDFC Bank offer over 7.5 per cent interest on senior citizen FDs. However, the highest interest is offered by DCB Bank at 8.50 per cent for a period of 25 months to 26 months and 37 months to 38 months.