Date:21/08/2006 URL: http://www.thehindubusinessline.com/2006/08/21/stories/2006082101771400.htm

Back IDBI offers 8.25% on new FD scheme

Our Bureau

Mumbai , Aug. 20

Industrial Development Bank of India Ltd (IDBI) has launched a new fixed deposit scheme, IDBI `Suvidha Plus' (ISPFD), which offers 8.25 per cent interest rate on fixed deposit of 500 days.

The customers can deposit a minimum amount of Rs 10,000 and thereafter in multiples of Rs 1,000. Individuals, Hindu undivided families, companies, trusts, NGOs, among others can avail the scheme. "There is no cap on the quantum of funds that can be parked in the ISPFD scheme," said a press release by the bank.

Senior Citizens

The senior citizens would get a higher interest rate of 8.75 per cent per annum on their investments in the ISPFD. "Investors looking for steady income over a short-to-medium term horizon would find the returns from this scheme, attractive," said Mr V. P. Shetty, Chairman and Managing Director, IDBI Ltd.

"The offer will be open for a limited period only," he said. The depositors in the new scheme can receive interest payouts, on a monthly or a quarterly basis. Pre-mature withdrawal would attract a penalty of one per cent. The customers can also avail of loan or overdraft facility against the ISPFD. Under the scheme, deposits qualify for automatic renewal at interest rates prevailing on the date of renewal.