Bank of Baroda FD Rates: The Reserve Bank of India (RBI), the central financial institution of the country, has made a significant announcement. Its Monetary Policy Committee has decided to keep the repo rate unchanged, maintaining it at 6.50%. This decision plays a critical role in the nation’s economy, influencing various sectors, including banking.
Bank of Baroda’s New Fixed Deposit Rates
Among the prominent public-sector banks, Bank of Baroda (BoB) has recently revised its fixed deposit (FD) interest rates. Effective from 9th October 2023, the bank has raised its interest rates for various tenures by up to 50 basis points on domestic retail fixed deposits, as well as NRO and NRE term deposits. This is noteworthy as it comes after the previous revision made by the bank on 12th May 2023.
What Does This Mean for Depositors?
For general customers, the bank now offers up to 7.40% per annum, while senior citizens can avail of a higher rate of up to 7.90%. BoB has made modifications to its ‘Tiranga Plus’ deposit scheme, providing senior citizens with an annual interest of 7.80%. The revised rates span across various tenures:
- FDs for 7 to 14 days will now earn 3%.
- For 15 to 45 days, the interest rate has been increased by 50 basis points to 3.50%.
- Deposits maturing between 46 to 180 days will yield 5%.
- For tenures of 181 to 210 days, the rate has been raised to 5.50%.
- Deposits maturing between 211 to 270 days will have an interest rate of 6%.
Long-Term Deposits: A Closer Look
BoB continues to offer 6.75% on FDs maturing in two years. There’s an increment in the rates for FDs with tenures between two to three years, now standing at 7.25%. For those considering longer durations, ranging from three to ten years, the bank offers a rate of 6.50%.
In a fluctuating financial environment, the unchanged repo rate by RBI and the revised FD rates by BoB play crucial roles. Depositors should take note of these changes, which can influence their investment decisions and financial planning.