AU Small Finance, Bank of Baroda, and other banks that offer up to 8% interest on green deposits
Banks such as AU Small Finance, Bank of Baroda, Indian Overseas Bank, SBI, among others are offering green fixed deposits with interest rates ranging from 5.7-8 percent, depending on the tenures chosen.
Green fixed deposits (GFDs) differ from regular fixed deposits. In GFDs, the funds are specifically earmarked for financing green projects and activities, such as renewable energy, clean transportation, sustainable water and waste management, energy efficiency, climate change adaptation, pollution prevention and control, green buildings, biodiversity conservation and so on.
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Resident Indians, Non-Resident Indians (NRIs) and High Net worth Individual (HNI) investors are all eligible to invest in the GFDs. The rates on GFDs are comparable or slightly lower in many cases as compared to regular FDs. Here are the banks that offer the highest interest rates on GFDs across tenures. The data is as of March 20, 2024. BankBazaar has compiled the data.
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AU Small Finance Bank Interest rates on GFDs range from 6.75 percent to 8 percent. Applicable investment tenures are 12 to 120 months.
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Bank of Baroda Green deposit interest rates range from 6.40 percent to 7.15 percent. Applicable investment tenure is 12 months to 2,201 days.
The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI, guarantees investments in fixed deposits of up to Rs 5 lakh.
Hiral Thanawala is a personal finance journalist with over 10 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
