Do you worry about safety a lot these days? But practically speaking, in today’s world, there is not much to do for this attribute. People stack the hard on money in banks and Financial Institutions without worrying much about the safety of the investment. To be very honest, they are all enjoying the full benefits by utilizing every scheme offered by various banking institutions that are represented in the country. Let us just rewind a few years earlier, there was no regular system, which permitted people to safeguard the money and mostly used to Treasure the money in their own houses, which was quite risky and hard to do.
Considerations on your FDs
But today, the scenario is the other way around. The questions you need to ask yourself are; what are the kinds of schemes offered? Do the fixed deposit schemes suit your needs? Are they something you are looking for? Can you withdraw prematurely? And much more.
What is a Nationalised Bank?
So, at the bottom line, what are Nationalised banks? Let me explain. Nationalization means the transfer of public sector assets to be operated or owned by the state or the central government. In our country, which was previously functioning in private sectors, was just transferred to the public sector by the act of nationalization, and then Nationalised banks came into existence. The history of banking, without a doubt, goes back to post-independence, when the Government of India initiated various measures to play an active role in the economic development of the nation.
It resulted in the establishment of The Reserve Bank of India in April 1935 and later Nationalised the same during 1949 under the terms of the Reserve Bank of India Act of 1949. After independence, the Indian government had adopted a plan for economic development for the betterment of the country, and under the leadership of Prime Minister Indira Gandhi had issued an ordinance to nationalize 14 of the largest commercial banks in India under the RBI.
The 14 banks contained up to 85% of the bank deposits in the country, and many of them were privately owned. In 1819, 6 more commercial banks followed that suit and came under nationalization, and until the 1990s, the growth of these banks grew at a snail’s pace of around 4% annually during early 1990. The Government of India had adopted a policy; the policy of liberalization and licensed a small number of private banks in the country. It did help the Rapid growth of the economy.
Why were banks Nationalized?
- Social Welfare
- Banking Habits Development
- Expansion of the Banking Sector
- To Reduce Regional Imbalance
- To Control Private Monopolies
- To Prioritize Sector Lending
Famous Nationalized Banks of India and their Fixed Deposits
State Bank of India
SBI or The State Bank of India was formed when the Bank of Madras was merged into two other presidency banks. They are the Bank of Calcutta and the Bank of Bomboy to form an empire. It was later renamed the State Bank of India when the Government wanted a 60% stake in the Imperial Bank of India.
Fixed Deposit of State Bank of India
- The bank has various different FD schemes set in for investors.
- The maximum interest rate on the FD for a general citizen is 5.40%.
- The maximum interest rate for a senior citizen is 6.20%.
Andhra Bank
It is one of the medium-sized public sector banks of the country. It started operating in 1923. The Indian government owns 63.97% of the bank’s stake in the form of share capital. The bank has a network of 2803 branches in India.
Fixed Deposit of Andhra Bank
- Andhra Bank has different FD schemes to suit different investors.
- The maximum interest rate on SBI FD for a general citizen is 4.25%.
- The maximum interest rate for a senior citizen is 4.75%.
Allahabad Bank
This bank was initiated in 1865 in Allahabad by a group of Europeans. The bank is headquartered in Kolkata. It is also one of the oldest stock banks present in the country, and it has withstood turbulent times since its inception.
Fixed Deposits of Allahabad Bank
- Allahabad Bank has different FD schemes to suit different investors.
- The maximum interest rate on the FD for a general citizen is 6.50%.
- The maximum interest rate for a senior citizen is 6.50%.
Bank of Baroda
The Bank of Baroda was founded in the pre-independence days. The bank was nationalized in 1969 by the Government of India. The Bank of Baroda’s total assets has crossed Rs. 3.58 trillion, which also makes it the second-biggest Indian bank based on assets.
Fixed Deposit of Bank of Baroda
- Bank of Baroda has different FD schemes to suit different investors.
- The maximum interest rate on the FD for a general citizen is 4.30%.
- The maximum interest rate for a senior citizen is 4.80%.
Bank of India
This bank came into existence in 1906 when a group of businessmen came together to start it off. Today the bank has a network of 5100 branches across the country. It is headquartered in Mumbai.
Fixed Deposits of Bank of India
- Bank of India has different FD schemes to suit different investors.
- The maximum interest rate on the FD for a general citizen is 5.30%.
- The maximum interest rate for a senior citizen is 5.80%.
Bank of Maharashtra
Bank of Maharastra has the largest network of branches in Maharashtra. It has an estimated 15 million customers across the world. It was started in 1935 in Pune and obtained the status of Schedule Bank during 1944.
Fixed Deposits of Bank of Maharashtra
- Bank of Maharashtra has different FD schemes to suit unique investors.
- The maximum interest rate on the FD for a general citizen is 4.90%.
- The maximum interest rate for a senior citizen is 5.40%.
Conclusion
If you are still wondering if putting your money in the hands of these banks, you should not be. Safety can be your last worry when it comes to an FD in a nationalized bank. Fixed deposits in these banks have always been a trusted source for decades on returns and capital security.
