Good news for this bank’s customers as it hikes interest rates on FDs

Bank of Baroda (BoB) has raised interest rates on fixed deposits of less than Rs 2 crore for a variety of tenors.

The public sector lender announced the change on March 22, 2022, and now it is offering an interest rate of 5.20 percent, up from 5.1 percent before, on deposits maturing in more than one year and up to three years, a hike of 10 basis points (bps). For deposits maturing in one year, it is 5%. 

The latest FD interest rates range from 2.80% to 5.55% for maturities between 7 days and 10 years. 

Previously, the bank offered a 5.25 percent interest rate on deposits maturing in three years and up to 10 years; however, the interest rate will now be 5.35 percent. 

The state-run bank gives an interest rate of 2.80% on FDs maturing in 7 days to 45 days.

For maturity periods 46 days to 180 days and 181 days to 270 days, BoB gives an interest rate of 3.7%, 4.30% respectively. On FDs maturing in 271 days or more but less than 1 year, it is 4.4%.  

Except for the tenors mentioned above, the bank has held interest rates on the rest of the tenors constant. 

FD rates for senior citizens

Senior citizens will continue to get an additional rate of 0.50 percent on deposits maturing in 7 days to 5 years. They will receive a 6.35 percent interest rate on deposits maturing in more than 5 years and up to 10 years, which is a 1% additional over and above the regular rate.

On deposits maturing in more than one year to three years, they will receive a 5.70 percent interest rate, from 5.6 percent.

While the interest rate on deposits maturing in more than 3 years and up to 5 years was previously 5.75 percent, now elderly people will receive 6.00 percent, an additional ROI of 0.50+0.15.