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In an effort to increase deposits, banks have begun to offer larger yields on FDs. Although major banks like SBI and HDFC were the first to increase FD interest rates, smaller banks like IDBI have done the same out of concern that they would fall behind.

A new group of super senior people, defined by SBI as those over 80, will get 10 basis points more than senior citizens. IDBI Bank has also embraced this program.

The ‘IDBI Chiranjeevi-Super Senior Citizen FD’ is a fixed deposit product that IDBI Bank has introduced specifically for those who are 80 years of age or more. In addition to the regular fixed deposit rates, the plan provides an extra 0.65% interest rate. 8.05 percent for a 555-day tenure, 7.9 percent for 375 days, 8 percent for 444 days, and 7.85 percent for 700 days are the interest rates offered under this plan. The plan goes into effect on January 13, 2025.

The State Bank of India (SBI) has also launched a recurring deposit plan called “Har Ghar Lakhpati” (lakhpati in every house) as part of its new, creative savings plans. Through modest monthly payments over three to 10 years, the initiative aims to allow people to build up a corpus of at least Rs one lakh.

Anyone may establish an account, even children ten years of age and up.

The plan provides interest rates of 6.75 percent for three- and four-year tenures and 6.50 percent for five- to ten-year tenures for those under 60. It provides 7.25% for three and four years and 7% for years five through ten for those over 60.

Similar to this, Bank of Baroda has introduced liquid fixed deposits, which allow users to take out money in increments of Rs 1,000 after a Rs 5,000 initial deposit. Additionally, deposits above Rs 5,000 must be made in multiples of Rs 1,000.

During an earlier review meeting, Finance Minister Nirmala Sitharaman urged public sector bank heads to speed up the growth rate of their deposits to keep up with the faster rate of loan expansion.

There was a possibility of an asset-liability mismatch in the banking system since the growth rate of deposits at the time was 3–4% slower than the rate of loan growth in previous months.