Senior citizens will receive an additional 50 basis points over these rates.
Bridging asset-liability mismatch
Banks have deposits maturing at regular intervals. But sometimes the amount maturing at the same time is high. "When a bank anticipates higher liquidity requirements, it offers higher rates on FDs maturing around that time to attract more deposits," says Adhil Shetty, chief executive officer (CEO), Bankbazaar.
Besides the repo rate, banks consider the gap between the growth in deposit mobilisation and credit demand when setting FD rates.
"Banks falling short of their deposit mobilisation targets increase their FD rates to attract incremental deposits for funding their credit growth," says Gaurav Aggarwal, chief business officer (unsecured lending), Paisabazaar.
Special tenure rates also tend to catch customers' attention in a way that standard tenures like six months and one year do not.
Peak rates
This story is from the August 07, 2024 edition of Business Standard.
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This story is from the August 07, 2024 edition of Business Standard.
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