Following the State Bank of India’s hike in fixed deposit rates by up to 50 basis points, the Bank of Baroda has raised interest rates on fixed deposits by as much as 125 basis points across different maturity periods. The revised rates, effective from December 29, 2023, apply to domestic deposits below Rs two crore, including non-resident Indian ordinary (NRO), as stated by BOB. Bank of Baroda implemented fixed deposit interest rate hikes ranging from 10 basis points to 125 basis points on various maturity buckets for deposits below Rs 2 crore.
Bank of Baroda Boosts Short-Term Deposit Rates
BoB stated that it is primarily concentrating on shorter-term maturity buckets, particularly those below one year, with the rate hike. Increasing interest rates in these maturities will significantly benefit depositors with shorter-term deposits and align with the Bank’s goal to balance and optimize overall deposit costs while safeguarding its Net Interest Margin (NIM). This aligns with the Bank’s strategy to enhance its portion of shorter-term retail term deposits.
Bank of Baroda Raises Fixed Deposit Rates Across Tenures
Bank of Baroda increased fixed deposit interest rates by 10 to 125 basis points on various maturity buckets, applicable to deposits below Rs 2 crore and effective from December 29, 2023. The bank raised the interest rate for common residents from 3% to 4.25% on terms ranging from 7 to 14 days.
It also increased rates for different tenures: 15-day to 45-day by 100 basis points, 46 days to 90 days from 5% to 5.50%, 91 days to 180 days from 5% to 5.60%, and 181 days to 210 days by 25 basis points. Furthermore, the bank increased rates for durations from 211 days to 270 days by 15 basis points. The interest rate hike extends to tenures beyond 1 year up to 400 days and above 400 days to 2 years.
Applicable for Domestic Term Deposits, Including NRO, Below Rs 2 Crore
Domestic Term Deposits including NRO Deposits below ₹ 2.00 Crores, ROI in % [Fresh & Renewal] – (Callable) – w.e.f 29-12-2023
| Tenors | Residents / General Public | Resident Indian Sr. Citizen |
|---|---|---|
| 7 days to 14 days | 4.25 | 4.75* |
| 15 days to 45 days | 4.50 | 5.00* |
| 46 days to 90 days | 5.50 | 6.00* |
| 91 days to 180 days | 5.60 | 6.10* |
| 181 days to 210 days | 5.75 | 6.25* |
| 211 days to 270 days | 6.15 | 6.65* |
| 271 days & above and less than 1 year | 6.25 | 6.75* |
| 1 year | 6.85 | 7.35* |
| Above 1 year to 400 days | 6.85 | 7.35* |
| Above 2 Years and up to 3 Years | 6.85 | 7.35* |
| Above 3 Years and up to 5 Years | 7.25 | 7.75* |
| Above 5 Years and up to 10 Years | 6.50 | 7.15 # |
| Above 5 Years and upto 10 Years | 6.50 | 7.50*** |
| Above 10 years (MACT/MACAD Court Order schemes only) | 6.25 | 6.75* |
| 399 Days (Baroda Tiranga Plus Deposit Scheme) | 7.15 | 7.65* |
(* incl. additional ROI 0.50%, # incl. additional ROI of 0.50+0.15, *** incl. additional ROI of 0.50%+0.50%)
MACAD – Minimum Average Continuous Annual Deposits
Bank of Baroda Senior Citizens Fixed Deposit Rates Surge
Following the recent hike, senior citizens can now enjoy enhanced FD rates ranging from 4.75% to 7.75%. These attractive rates are applicable across tenures spanning from 7 days to 10 years.
