Special deposit schemes offering higher rates of return than normal have returned in the personal finance area. These special schemes have been relaunched by around 14 banks. Slow growth rate of deposits at just 14.4% have made these banks take this measure as a way of rebalancing the asset liability disparity.
These special products are available for 390 days, 790 days and 1000 days and the interest rates they offer is more than that offered on regular deposits.
The move for these deposit schemes was started by State Bank of India and then by Canara Bank, Corporation Bank and United Bank of India. In private banks ICICI and HDFC Bank offer these products.
SK Bhattacharyya, MD SBI said, “The reason behind re-introduction of such schemes was consumer preference for a product that was immensely popular when it was earlier available”.
Corporation Bank executive director Asit Pal said, the deposit situation of the bank has improved in the previous few months due to the special 7.5% plan with maturity of 33 months.
He said, “Special schemes are to attract a large chunk of funds within a short span and to bridge asset-liability gaps”.
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