India’s Central Banking Decisions and Their Impact on Bank of Baroda’s Fixed Deposit Interest Rates
Bank of Baroda Fixed Deposit: The Reserve Bank of India’s Monetary Policy Committee has chosen to maintain stability in the financial sector by leaving the repo rate unchanged at 6.50%. In a different but related move, the Bank of Baroda, a prominent public sector bank, has announced an increase in the interest rates on its fixed deposits (FDs). This adjustment, which covers both NRO and NRE term deposits, along with domestic retail fixed deposits, signifies an increment of up to 50 basis points for various tenures. As per the official website of the bank, these revised rates are effective from 9th October 2023 and apply to deposits below 2 crore INR. It’s noteworthy that the bank had last revised its FD rates on 12th May 2023.
Bank of Baroda Fixed Desposit Interest Earnings Breakdown
For the general public, Bank of Baroda is now offering interest rates up to 7.40% annually. Senior citizens stand to gain even more, with rates going up to 7.90%. The bank has made changes to its ‘Tiranga Plus Deposit Scheme’, offering senior citizens an annual interest of 7.80% for a tenure of 399 days. Short-term deposits ranging from 7 to 14 days will now fetch an interest of 3%. Meanwhile, deposits between 15 to 45 days have seen a rate increment of 50 basis points, making it 3.50%. The bank has set the rate for deposits maturing between 46 to 180 days at 5%, and those between 181 to 210 days at 5.50%. Deposits maturing from 211 to 270 days will earn an interest of 6%.
BOB Benefits of Opting for FDs
Bank of Baroda continues to maintain an interest rate of 6.75% for FDs that mature in two years. For FDs with maturities spanning between two to three years, the bank has increased the interest rate by 20 basis points, making it 7.25%. For longer terms, ranging from 3 to 10 years, the bank offers a consistent interest rate of 6.50%.
These changes reflect the bank’s strategy to attract more depositors and align with the broader monetary policies in the country. It’s always advisable for potential depositors to keep a close watch on these rates as they are pivotal in maximizing returns on investments.
