Date:17/08/2006 URL: http://www.thehindu.com/2006/08/17/stories/2006081705551600.htm

Business

IDBI to introduce new deposit scheme

MUMBAI: IDBI will launch a new fixed deposit scheme called IDBI Suvidha Plus (ISPFD) under its brand `IDBI Suvidha Fixed Deposit (ISFD)', with a tenure of 500 days.

The scheme will open on Thursday and has an attractive interest rate of 8.25 per cent annually, a release from IDBI said.

The minimum amount of investment in the scheme is Rs. 10,000 and in multiples of Rs. 1,000 thereafter. There is no cap on the quantum of funds that can be parked in the ISPFD scheme, the release said. Senior citizens will enjoy a higher interest rate of 8.75 per cent annually.

IDBI Chairman and Managing Director, V. P. Shetty, said, ``investors looking for a steady income over a short-to-medium term horizon will find the returns from this scheme extremely attractive.

The current offer will be open for a limited period only."

Depositors in the scheme have the choice of receiving interest payouts, either on a monthly or a quarterly basis while pre-mature withdrawals will attract a penalty of one per cent. — PTI