Bank of Baroda (BOB) has increased the interest on its retail fixed deposits (FD). The bank has increased the interest rates on FDs for senior citizens by up to 65 basis points. The new interest rates on domestic FDs of this public sector bank are applicable from December 26 on deposits of less than Rs 2 crore.
After the increase in interest rates, the bank is now paying 3% to 7% interest on FDs of 7 days to 10 years to regular citizens. On the other hand, the bank will pay interest at the rate of 3.50% to 7.80% on the FD of the deposit period ranging from 7 days to 10 years to the senior citizens.
Since the Reserve Bank of India (RBI) increased the repo rate, the private and public sector banks of the country are increasing the interest rates of their fixed deposits. BOB has increased the interest rates on retail term deposits for the second time this quarter. Earlier in the month of November also, BOB had increased FD interest rates by 100 basis points (bps).
According to BOB's press release, the bank has also increased the interest rates on its special FD 'Baroda Tricolor Plus Deposit Scheme', which is a limited period special retail term deposit (FD) product. This special FD was launched by BOB on the occasion of Amrit Mahotsav of India's Independence. Under this, Bank of Baroda took out 2 FDs of 444 days and 555 days, in which customers are being offered interest of up to 6.75% and 7.25% respectively. This special scheme will end on 31 December 2022.
On the other hand, common customers will now get 7.05% interest in the bank's 399-day 'Baroda Tricolor Plus Deposit Scheme'. Senior citizens will get 7.55% interest on this scheme. If you take the non-callable option, then common people will get 7.30% and senior citizens will get 7.80% interest. Non-callable option means that the customer cannot withdraw the FD prematurely. If it does so, the bank will apply its rules on it.