Nabil Bank’s new scheme to provide 11% interest in advance; Assumed to gather the attention of Bankers Association with the effective interest rate exceeding 12%
Nabil Bank Limited has brought a new scheme in the market. The bank will be providing 11% advance interest on the fixed deposits for its customers.
The minimum balance required for the fixed deposit is Rs 5 lakhs. The bank will provide interest at the time of account opening. This scheme will be available for 1 and 2 years.
For example, when as customer would receive Rs 55,000 in advance as interest from the bank. And the customer would get an opportunity to invest it again in another bank his total interest income in the year would be Rs 6,050. Hence, the effective interest rate for the customer for the invested Rs 5 lakh would be more than 12%.
The scheme’s 11% interest rate would turn out to be more than 12% which would violate the agreement made with the bankers association. The issue of interest rate had just calmed between NIC Asia and there are chances of new issue with Nabil Bank.
However, the scheme will be beneficial for the customers and the bank seems to attract more customers through the introduction of this scheme.
For example, when as customer would receive Rs 55,000 in advance as interest from the bank. And the customer would get an opportunity to invest it again in another bank his total interest income in the year would be Rs 6,050. Hence, the effective interest rate for the customer for the invested Rs 5 lakh would be more than 12%.
The scheme’s 11% interest rate would turn out to be more than 12% which would violate the agreement made with the bankers association. The issue of interest rate had just calmed between NIC Asia and there are chances of new issue with Nabil Bank.
However, the scheme will be beneficial for the customers and the bank seems to attract more customers through the introduction of this scheme.
