Karnataka Vikas Grameena Bank hikes interest rates on deposits

DHARWAD: The Karnataka Vikas Grameena Bank has offered a big bonanza to its depositors as a Diwali gift.
Accordingly senior citizens will get a maximum of 7. 55 % interest and the general public 7.05 %.
At present, this interest rate is the highest among government banks, a release from the bank said.
The bank has introduced a deposit scheme for 1,111 days, called Vikas Siri Samruddhi, and according to the release this interest rate will be applicable for that scheme. Otherwise, too, the bank has substantially increased the interest rate on the remaining slabs.
In a press release, P Gopi Krishna, the chairman of KVGB, said the upward revision in the deposit rate was in line with the market trend and would encourage the public to invest more in the bank's various term deposit schemes and Vikas Samrudhi.
The revised rates are as following: Seven to 14 days-3.25 % (3.05%), 15 to 29 days-3.25 % (3.05%), 30 to 45 days-3.30 % (3.05%), 46 days to 60 days 4.50% (4.10%), 61 days to 90 days 4.50% (4.25 %) 91 days to 180 days 4.60% (4.60%),181 days to 364 days 6.00% (4.90%), one year only 6.00 (4.90%), above one year and below 2 years 6.50 % (5.65 %),2 years and below 3 years 6.50 % (5.80 %), 3 years and above 5 years 6.50 % (5.90%), special deposit scheme for 1111 days 7.05%.
Senior citizens are eligible for additional interest of 0.50% over the card rate on term deposit up to Rs 2 cr and with maturity tenor of a year and above only.
As the rate of interest is high at present, Krishna requested the public to indirectly participate in rural development by investing their savings in KVGB.