What is Interest Rate?
Interest Rate
Interest is the extra amount of money paid or earned for the use of money over a period of time. When a person borrows money from a bank or lender, interest is paid as a cost for using that money, and when money is saved or deposited in a bank, interest is earned as a reward for allowing the bank to use those funds. Interest exists to account for the time value of money, compensate for risk, and encourage saving and lending in the financial system.
Type of Interest
Deposits Interest Rates
1. Savings Deposits – Interest Rates per annum.
| SI No. | Name of the Savings Accounts | Rate |
|---|---|---|
| 1 | Gerab Savings Deposit (GSD) | 4.50% |
| 2 | Gerab Young Savers Deposit (GYSD) | 4.50% |
| 3 | Gerab Savings Corporate Deposit (GSCD) | 4.50% |
2. Gerab Fixed Deposit (GFD) – Interest Rates (Retail) per annum.
| Term | Rate |
|---|---|
| 3 months to less than 1 year | 4.50% |
| 1 year to less than 2 years | 5.00% |
| 2 years to less than 3 years | 6.50% |
| 3 years to less than 4 years | 7.50% |
| 4 years to less than 5 years | 8.00% |
| 5 years and above | 8.25% |
3. Gerab Fixed Deposit (GFD) – Interest Rates (Corporate) per annum.
| Term | Rate |
|---|---|
| 1 month to less than 3 months | 0.50% |
| 3 months to less than 1 year | 0.75% |
| 1 year to less than 2 years | 1.00% |
| 2 years to less than 3 years | 1.25% |
| 3 years to less than 4 years | 1.75% |
| 4 years and above | 2.00% |
4. Gerab Recurring Deposit (GRD) – Interest Rates (Only for Retail) per annum.
| Term | Rate |
|---|---|
| Above 3 months and less than 1 year | 4.50% |
| 1 year and less than 2 years | 5.50% |
| 2 years and less than 3 years | 6.50% |
| 3 years and above | 7.25% |