Bandhan Bank has increased interest rates on select fixed deposit (FD) tenors by up to 20 basis points (bps), offering improved returns to depositors amid growing competition among banks to attract funds. The revised rates are applicable to deposits with tenures ranging from two to five years and are aimed at strengthening the bank’s deposit base.
Under the revised structure, senior citizens will earn an interest rate of 7.95 per cent on fixed deposits with a tenure of two to three years, while other customers will receive 7.45 per cent. For deposits in the three- to five-year category, the bank is offering 7.75 per cent to senior citizens and 7.25 per cent to general customers.
The move comes at a time when the Reserve Bank of India’s Monetary Policy Committee has maintained the repo rate at 5.25 per cent for the third consecutive policy review. Despite the stable interest rate environment, banks are increasingly raising deposit rates as they seek to mobilise funds and address the widening gap between credit growth and deposit growth.
The banking sector has witnessed heightened competition for deposits in recent months. Several lenders are introducing attractive savings and fixed deposit products to encourage customers to lock in funds for longer periods.
Earlier, Bank of Baroda launched its ‘bob Golden Goal Deposit Scheme’ for retail deposits below ₹3 crore, offering interest rates of up to 7.40 per cent annually, depending on the deposit category and tenure.
Industry experts believe that higher FD rates could benefit savers, particularly senior citizens, while helping banks strengthen liquidity and support future lending growth.
