Karnataka Vikas Grameen Bank (KVGB), a regional rural bank (RRB) headquartered in Dharwad, increased the rate of interest on deposits with effect from October 20.

A statement said on Monday that senior citizens will get a maximum interest rate of 7.55 per cent, and the general public a maximum of 7.05 per cent.

Revised rates

Deposits of 7-14 days will get an interest rate of 3.25 per cent (3.05 per cent); and 15-29 days will get 3.25 per cent (3.05 per cent).

Deposits of 30-45 days tenure will get an interest rate of 3.30 per cent (3.05 per cent); 46-60 days will get 4.50 per cent (4.10 per cent); and 61-90 days 4.50 per cent (4.25 per cent).

The bank will offer an interest rate of 6 per cent (4.90 per cent) for deposits of 181-364 days, and 6 per cent (4.90 per cent) for one year only.

Deposits of above one year and below two years will get an interest rate of 6.50 per cent (5.65 per cent); 2 years to below 3 years will get an interest rate of 6.50 per cent (5.80 per cent), and above 3 years will get an interest rate of 6.50 per cent (5.90 per cent).

Senior citizens are eligible for additional interest of 0.50 per cent over the card rate on term deposits up to ₹2 crores with maturity tenor of one year and above only.

New scheme

The bank has also introduced a new deposit scheme called ‘Vikas Siri Samruddhi’ for 1,111 days. Senior citizens will get an interest rate of 7.55 per cent, and the general public 7.05 per cent under this scheme.

Quoting P Gopi Krishna, Chairman of KVGB, the statement said the upward revision in the deposit interest rate is in line with the market trend and is expected to encourage the public to invest more in various term deposit schemes of the bank.

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