Recently, several banks have launched new deposit schemes to attract existing and new depositors. Some of these schemes were implemented after making minor adjustments to the usual deposit schemes.
For example, Bank of Baroda (BOB) has launched a recurring deposit plan which is similar to a recurring deposit where depositors can make small deposits at regular intervals over 6 to 20 months.
This fixed deposit scheme allows depositors to open an account with ₹50 and above in multiples of ₹50 (rural and semi-urban). Fixed deposit (FD) offers the facility of loan or overdraft up to 95 percent of the deposit amount.
Jana Small Finance Bank has also launched a new fixed deposit scheme known as “Liquid Fixed Deposit Plus”.
The new fixed deposit scheme offers an interest rate of 6.75 per cent per annum with tenures ranging from 7 to 180 days. Thus, one can open a fixed deposit for any period of time, between one week and six months, to earn an interest of 6.75 per cent.
These are some of its main features:
I. Term deposits offer higher returns by offering better yields than traditional short-term investments.
II. Enables same-day (T+0) reimbursement allowing instant access to funds.
III. There is the flexibility to withdraw a portion of the fixed deposit whenever needed.
IV. The term deposit has no exit fee, making it flexible and risk-free in case of early withdrawal.
V. You can also get an overdraft against your fixed deposit to meet urgent cash needs without breaking your deposit.
In case of partial withdrawal from Liquid Plus FD, the value of the fixed deposit after partial withdrawal must be equal to or greater than the minimum fixed deposit value.
The minimum value of a retail business fixed deposit is ₹ 10 lakh and the maximum value is below ₹3 crores.
For fixed-term and liquid deposits, interest payments are made on a fiscal year basis. Monthly interest payments will be made on the first day of each month, quarterly interest payments will be made on the first day of each quarter, and semi-annual payments will be made on October 1 and April 1.
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