Green Deposits have become increasingly popular in recent times. Two more banks, including SBI, are now offering these deposit schemes in our country with interest rates of up to 8%. But what exactly are green deposits, and what benefits do they offer? Let’s explore and find out.
Around the world, there is an increasing prevalence of environmental and social issues, and as a result, banks are taking action to help address these problems. One way that banks are doing this is by investing in environmentally friendly projects through what is known as Green Fixed Deposits. These deposits are called “green” because they are invested in ways that aim to protect the environment.
The money invested in these schemes is insured by the Deposit Insurance Credit Guarantee Corporation Act, 1961. Additionally, the funds collected through these deposit schemes are invested in environmentally sustainable projects that benefit society.
SBI, the largest bank in the country, has launched Green Rupee Term Fixed Deposits, demonstrating its commitment to sustainability.
Central Bank of India
Central Bank of India offers a fixed deposit scheme called ‘Cent Green Deposits’, which enables customers to invest their money in funding projects related to renewable energy, green building, smart agriculture, water and sewage management.
The scheme offers attractive interest rates of 5.70% for a deposit duration of 1111 days, 5.80% for 2222 days, and 5.85% for 3333 days. The minimum deposit amount is Rs. 50,000, while the maximum deposit amount is 2 crores. Additionally, the bank provides an extra interest rate ranging from 0.20% to 0.25% above the normal interest rates.
AU Small Finance Bank
AU Small Finance Bank is currently offering fixed deposit schemes that are focused on promoting sustainability and the environment. The bank plans to utilize the funds gathered from these deposits to invest in eco-friendly projects such as waste management, solar projects, plastic recycling, rainwater conservation, and electric vehicles.
The bank provides attractive interest rates based on the tenure of the deposit. You can earn 6.75% interest for a 12-month deposit, 7.75% interest for a deposit of 12 to 15 months, 7.50% interest for a deposit of 15 to 18 months, and a maximum of 8% interest for a deposit with a tenure of 18 months.
SBI Green Rupee Term Deposits
The State Bank of India has recently launched a new deposit scheme called SBI Green Rupee Term Deposits. The primary goal of this scheme is to finance green projects.
You can deposit any amount, starting from a minimum of Rs. 1000. TDS is applicable as per the Income Tax Act, but customers can avoid TDS deductions by submitting Form 15G or Form 15H.
Currently, the bank offers an interest rate of 6.65% to general customers and 7.15% to senior citizens for a tenure of 1111 days. For a tenure of 1777 days, the interest rate is 7.15%, while senior citizens can avail an interest rate of 7.40% for a tenure of 2222 days.