PSU Bank FD Rates: Baroda Bank Hikes Fixed Deposits Rates By 125 Bps; Check New Interest Rates Here

Leading public sector bank, Bank Of Baroda has raised its interest rates on Domestic Retail Term Deposits, including NRO Term Deposits in the range of 10 bps to 125 bps on various maturity buckets. The new interest rates will come into effect from December 29, 2023. These are applicable on deposits below Rs 2 crore. Senior citizens are the biggest beneficiaries of the latest hike.

Check out new interest rates:

The highest hike of 125 bps is given on tenures from 7 days to 14 days where general category individuals will earn up to 4.25% on FDs below Rs 2 crore effective from December 29, from earlier 3%. Further, senior citizens will get up to 4.75% from earlier 3.5%.

A 100 bps hike is given on FDs for tenure of 15 days to 45 days, taking the interest rates to 4.5% and 5% for general and senior citizens compared to the previous rates of 3.5% and 4% respectively.

Further, general category individuals will get a 50 bps hike on FDs for a maturity period of 46 days to 90 days to 5.50% from the earlier 5%. A similar hike is given to elderlies on the same tenures, taking the interest rate to 6% from the earlier 5.5%.

On tenures like 91 days to 180 days, the interest rate has been raised by 60% to 5.60% for the general category from the earlier 5%, and to 6.10% for elderlies from the previous 5.50%. Meanwhile, rates have been hiked by 25 bps on maturities for 181 days to 210 days, taking interest rates to 5.75% and 6.25% for general individuals and senior citizens compared to the previous rates of 5.50% and 6% respectively.

Moreover, a 15 bps hike is given on tenures of 211 days to 270 days. That being said, on this tenure, a general category and senior citizens will earn up to 6.15% and 6.65% from earlier 6% and 6.50% respectively. Lastly, the bank hiked rates by 10 bps each on tenures from 1 year to 2 years, taking the interest rate to 6.85% for the general category from earlier 6.75%, and 7.35% for senior citizens from earlier 7.25% on these maturities.

Notably, interest rates remained unchanged on tenures from 271 days to less than 1 year, at 6.25% and 6.75% for the general category and senior citizens.

The highest rate that the two categories earn is on tenure of above 2 years to 3 years where rates are at 7.25% for general individuals and 7.75% for senior citizens. These rates have been unchanged.

Also, the general category will continue to earn 6.50% on tenures from above 3 years to 10 years, 6.25% on above 10 years (MACD only), and 7.15% on the scheme called 399D (Tiranga Plus). Similarly, senior citizens will continue to earn up to 7.15% on above 3 years to 5 years, 7.50% on above 5 years to 10 years, 6.75% on above 10 years (MACD only), and 7.65% under 399 days Tiranga Plus scheme.

In its statement, the Bank of Baroda said that the increase in rates is largely focused on shorter-term maturity buckets, specifically those less than 1 year. Increasing interest rates in shorter-term maturities will not only greatly benefit depositors who keep deposits for shorter maturities but will also contribute to the Bank's objective of balancing and optimising the overall cost of deposits and protecting its Net Interest Margin (NIM). This is also in line with the Bank's strategy to increase its share of shorter-term retail term deposits.

Meanwhile, Ravindra Singh Negi, Chief General Manager of retail Liabilities & NRI Business, at Bank of Baroda said, "The decision to increase retail term deposit rates underscores Bank of Baroda's commitment to offering higher value to our customers, while strategically managing our deposit portfolio. We believe this step will not only attract more customers as they earn more on their savings but will also help the Bank optimise its cost of deposits, thereby safeguarding our NIM."

Both existing and new customers of Bank of Baroda can take advantage of the higher rates and open an FD through any of the Bank's branches across India. An online FD can also be opened by existing customers via the Bank's Mobile app (Bob World)/ Net Banking (Bob World Internet).