Bank of Maharashtra (BoM) has announced that it has revised its interest rates on fixed deposits of less than ₹2 Crore. Effective as of April 17th, 2023, the bank is offering interest rates ranging from 2.75% to 5.75% on a deposit tenure of 7 days to 5 years and above. This move comes as a bid to attract more customers to deposit their money in the bank and to increase its deposits.
One of the most significant changes made by Bank of Maharashtra is that it is now offering a maximum interest rate of 7% on a deposit tenor of 200 days. This is a significant increase from its previous rate of 6.75%. This special tenor is aimed at customers who wish to invest their money for a shorter period of time and still receive a competitive interest rate.
For customers who wish to deposit their money for a longer period of time, Bank of Maharashtra is offering a fixed interest rate of 6% on deposits with tenors of more than one year to three years. For deposits with tenors of more than three years to five years, the bank is offering an interest rate of 5.75%. This is a great option for customers who wish to save their money for the long term and earn a fixed rate of interest.
The bank is also offering an additional interest rate of 0.50% per year for senior citizens who are residents of India on all maturity tenors of 91 days and above for deposits up to Rs. 2 crore. This move is aimed at encouraging senior citizens to deposit their money in the bank and to offer them a more attractive rate of interest.
With the rise in inflation and the decrease in interest rates offered by other financial institutions, Bank of Maharashtra's move to increase its interest rates is expected to be well-received by customers who are looking for more competitive rates of interest on their deposits. This will also help the bank to attract more customers and increase its deposits, which will in turn help it to increase its lending capabilities.
Along with the increase in interest rates on fixed deposits, Bank of Maharashtra has also raised its marginal cost of funds-based lending rate (MCLR) by 10 basis points across all tenors. The six-month and one-year MCLRs are now 8.40% and 8.50%, respectively, compared to 8.50% and 8.40% before, respectively. This move is aimed at helping the bank to cover its costs and maintain its profitability.
Bank of Maharashtra is one of the oldest public sector banks in India and has a strong presence in Maharashtra, Goa, and other parts of the country. The bank offers a wide range of banking products and services, including savings accounts, current accounts, fixed deposits, loans, and credit cards.
In conclusion, Bank of Maharashtra's move to increase its interest rates on fixed deposits is expected to be a welcome move for customers who are looking for more attractive rates of interest on their deposits. This will also help the bank to attract more customers and increase its deposits, which will in turn help it to increase its lending capabilities.
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