Again the rates are raised by Canara Bank. This time it is below 1 crore rupees and it is for all retail term deposits. For 90 days, the rates will be up by 125 basis points and for 1 year, it will be up by 50 basis points. The bank under its special offer will give 8.30 per cent interest on deposit of 555 days and 8.60 interest on deposit of 1000 days.
For less than five years deposits, the bank will also pay an additional interest of 0.50 per cent to senior citizens and for less than Rs 1 Crore deposits for five years or above, the bank will also provide one per cent additional interest. All the rates will come in effect from Monday 13 December, 2010.
This is the second time in the month that Canara Bank, across various maturities, has raised the rates of domestic term deposits. The increase of 50 basis points interest announced by it under various maturities will take place from December 3.
It is doing this in order to attract more and more customers to it. Since all the private banks have started providing good facilities to its customers and the users are also shifting to them, then Canara has also launched this new scheme in order to attract the new customers. It wants to target the low class families by providing a lucrative profit to them.
We need to see if the current methodology adopted by it succeeds or not or if it fails without any benefits.