Until a few years ago, FD rates were quoted in either number of months or years, but ICICI Bank took the initiative to launch specific days FD with launch of 390/ 590/ 890 days FD.
With the turmoil in US financial market and its impending effect on India, Indian customers are now more inclined to invest in public sector banks rather than private sector or foreign bank, as such the new scheme may prove to be a hit in today’s times.
State Bank of India on Saturday announced a 1,000-day term deposit scheme with an interest rate of 10.5 per cent a year. The new scheme, which will begin from October 1, will be the term deposit of SBI carrying the highest interest rates. For senior citizens, the rate of interest will be 11 per cent. Earlier, it was offering 9.5 per cent on deposits of two years to less than three years.