Karnataka Vikas Grameen Bank raises interest rates

Karnataka Vikas Grameen Bank (KVGB), a Regional Rural Bank (RRB) headquartered in Dharwad, has raised the interest rate on deposits effective October 20.

A statement said on Monday that seniors will benefit from a maximum interest rate of 7.55% and the general public from a maximum of 7.05%.

Revised rates

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

Deposits with a term of 30 to 45 days will earn an interest rate of 3.30% (3.05%); 46-60 days will get 4.50% (4.10%); and 61-90 days 4.50% (4.25%).

The bank will offer an interest rate of 6% (4.90%) for deposits of 181 to 364 days and 6% (4.90%) for one year only.

Deposits over one year and under two years will earn an interest rate of 6.50% (5.65%); From 2 years to less than 3 years you will get an interest rate of 6.50% (5.80%), and above 3 years you will get an interest rate of 6.50% (5 .90%).

Senior citizens are entitled to an additional interest of 0.50% over the card rate on term deposits up to ₹2 crore with a maturity of one year and above only.

New scheme

The bank has also introduced a new deposit system called “Vikas Siri Samruddhi” for 1,111 days. The elderly will benefit from an interest rate of 7.55% and the general public from 7.05% under this scheme.

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

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