SBI vs Bank of Baroda green fixed deposits (FDs): Which is offering higher interest rate? Check details Let us compare the green FDs from SBI and Bank of Baroda
There are a few Indian banks that offer green deposit facility to its customers in an effort to raise money for projects and activities that take care of the environment and help India's green finance ecosystem flourish. State Bank of India and Bank of Baroda are the banks to launch green FDs.Let us compare the green FDs from SBI and Bank of Baroda.
SBI Green Rupee Term Deposit (SGRTD) details
SGRTD offers investors the flexibility to choose from three distinct tenors: 1111 days, 1777 days, and 2222 days.
Interest rates
Under the green deposit scheme, senior citizens can earn 7.15% on tenure of 1111 Days and 1777 Days. The bank offers 7.40% on 2222 Days tenure on retail deposits.
Regular citizens can earn 6.65% on tenure of 1111 Days and 1777 Days. The bank offers 6.40% on 2222 Days tenure on retail deposits.
SBI launches green rupee fixed deposit (FD): Who can invest, interest rate, how to buy
According to an SBI website, "Interest Rate for Special categories of Customers: Senior Citizens/ Staff/ Staff Senior Citizens are eligible for additional Interest Rate over applicable Rate for public under the Scheme. The benefit of additional interest shall not be available to NRI Senior Citizens/NRI Staff."
Bulk Retail TenorsGen. PublicSr CitizenGen. PublicSr Citizen1111 Days6.65%7.15%6.15%6.65%1777 Days6.65%7.15%6.15%6.65%2222 Days6.40%7.40%5.90%6.40%
bob Earth Green Term Deposits details
The Bank is offering highest interest rates of up to 7.15% p.a. on tenure of 777 days. The General Public/Resident Indians, NRIs and High Net worth Individual (HNI) investors are all eligible to invest in the bob Earth Green Term Deposit scheme.Bank of Baroda launches green fixed deposit: Who can invest, interest rate, tenure of bob Earth Green Term Deposits
Bank of Baroda has introduced some unique tenures under the bob Earth Green Term Deposit Tenure under the scheme is 1.5 years and 1717 days.
TenorsAmountRs 5,000 to Below Rs. 2 Crore bob Earth Green Deposits(% p.a.)1 year i.e. 6.7512 months1.5 years i.e. 6.7518 Months777 days7.151111 days6.41717 days6.42201 days6.4
According to a Bank of Baroda press release dated March 11, 2024, “The bob Earth Green Term Deposits offer depositors the opportunity to earn attractive interest rates on a range of tenors and participate in India’s transition to a green and sustainable economy. The Bank is offering interest rates of up to 7.15% p.a. The General Public/Resident Indians, NRIs and High Net worth Individual (HNI) investors are all eligible to invest in the bob Earth Green Term Deposit scheme.”
What are Green Deposits?
According to the South Indian Bank website, “Green Deposit is a fixed-term deposit for investors looking to invest their surplus cash reserves in environmentally friendly projects. These deposits provide investors a platform to fulfil their sustainability goals by investing surplus cash balances in environmentally beneficial projects. The investment in this fixed tenure deposit will go towards financing eligible businesses and projects that promote the transition to a low-carbon, climate-resilient, and sustainable economy.”
Here are more details from RBI’s FAQs on Framework for acceptance of Green Deposits issued on December 29, 2023.
Are the deposits raised under the above framework covered by Deposit Insurance and Credit Guarantee Corporation (DICGC)?
The deposits raised under the framework are covered by DICGC in accordance with the Deposit Insurance and Credit Guarantee Corporation Act, 1961 and the regulations framed thereunder, as amended from time to time.
Can banks allow overdraft facility to customers against Green Deposits?
Banks are allowed to offer overdraft facility to customers against Green Deposits subject to the instructions contained in the Consolidated Circular on Opening of Current Accounts and CC/OD Accounts by Banks dated April 19, 2022, as amended from time to time.
Whether foreign banks can have a single global policy on green deposits?
Foreign banks can have a common global policy on green deposits, without prejudice to the provisions of the framework for green deposits raised in India after June 01, 2023.
Can the green deposits be denominated in foreign currency?
No. The current framework permits green deposits to be denominated in Indian Rupees only.
Are these deposits covered under DICGC?
Deposits made under the framework are insured by DICGC in line with the Deposit Insurance and Credit Guarantee Corporation Act of 1961, as modified from time to time.
This story originally appeared on: India Times - Author:Faqs of Insurances
