There are several co-operative banks that offer competitive interest rates on fixed deposits (FDs). The interest rate from different banks range from 6.80% p.a. to 8.50% p.a. In fact, when compared to other types of banks, co-operative banks, offer a much better rate of interest, in some cases. It is a wise option to invest a certain pool of savings into these types of fixed deposits than conventional term deposits. Co-operative banks offer a wide range of financial services and products, including fixed deposits.
Co-operative banks are offering some of the highest interest rates on fixed deposits. Given below is a consolidated table of some of the best interest rates offered by these banks:
|Co-operative Bank FD Interest Rates 2020|
|Bank||Regular Interest Rates (per annum)||Senior Citizen Interest Rates (per annum)||Tenure|
|Mahaveer Bank||8.50%||9.00%||More than 2 years to 5 years|
|Mahaveer Bank||8.25%||8.75%||More than 5 years|
|Repco Bank||7.70%||8.20%||1 year and more than 2 years|
|Andaman & Nicobar State Co-operative Bank||8.00%||8.50%||8 years to 10 years|
|Andhra Pradesh State Co-operative Bank||7.55%||8.15%%||1 Year|
|Bombay Mercantile Co-operative Bank Limited||6.80%||7.30%||More than 2 years to 5 years|
|Bharat Co-operative Bank||8.00%||8.50%||1 year to 2 years|
|Saraswat Bank||7.60%||7.85%||15 months only|
|Janata Sahakari Bank||7.00%||7.25%||More than 3 years|
*Banks tend to revise interest rates from time to time
With all other banks offering internet banking and online services, co-operative banks have also stepped up their game and have begun to offer such services. Fixed deposits from co-operative banks can be easily purchased online without any hassle in a matter of minutes. Most fixed deposits from such banks can be purchased with minimal documentation, and by providing basic personal details.
Let us take a look at the procedure to open a co-operative bank fixed deposit account:
Note: The process may slightly vary from bank to bank.
1. What is a co-operative bank?
A co-operative bank is formed by a community or group on a cooperative basis. Their main aim is to serve the weaker sections of society and provide access to banking for all.
2. Do they provide same interest rates?
No. The interest rate provided by each co-operative bank varies and therefore it is not the same.
3. What are the tenure options for FDs in co-operative banks?
Different banks offer different tenure options. The maximum tenure at most banks is usually 10 years.
4. Who governs these banks?
The RBI issues guidelines for these banks. The banks are governed by the Banking Regulation Act.
*The above-mentioned rates are subject to change without prior notice. The customer should contact the respective bank for updated rates.
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