Bank Of Baroda Hikes Fixed Deposit Interest Rates

Bank of Baroda (BoB) is an Indian public sector bank headquartered in Vadodara, Gujarat. It holds the position of the second-largest public sector bank in India, following the State Bank of India, with a customer base of 153 million, a total business of US$218 billion, and a global presence through 100 overseas offices. According to 2019 data, it is ranked 1145 on the Forbes Global 2000 list. The bank was founded on July 20, 1908, by the Maharaja of Baroda, Sayajirao Gaekwad III, in the princely state of Baroda, Gujarat. On July 19, 1969, the Government of India nationalized the Bank of Baroda, along with 13 other major commercial banks, and it was designated as a profit-making public sector undertaking (PSU).

Bank Of Baroda

Bank of Baroda has increased fixed deposit (FD) interest rates by up to 50 basis points (bps) across various tenors for up to 3 years, applicable to deposits below ₹2 crore, effective from October 9, 2023. Ravindra Singh Negi, Chief General Manager – Retail Liabilities & NRI Business at Bank of Baroda, mentioned, “We are pleased to offer attractive interest rates to customers, enabling them to earn higher assured returns. In the 2 to 3-year investment tenor, Senior Citizen depositors can now earn up to 7.90% p.a., which is one of the best in the industry.” The bank is offering interest rates of up to 7.40% p.a. for general citizens and up to 7.90% p.a. for senior citizens. The bank has also adjusted interest rates on its Tiranga Plus Deposit Scheme for 399 days, with senior citizens earning 7.80% p.a. on non-callable deposits. Bank of Baroda had previously increased retail term deposit interest rates in May 2023 and March 2023.

Furthermore, the bank has raised bulk deposit interest rates (for deposits from ₹2 crore to ₹10 crore) by up to 1% (100 basis points) across various tenors. Both existing and new customers can open a new FD through any of the bank’s branches across India. Existing customers can also open an online FD through the bank’s mobile app (BoB World) or net banking (BoB World Internet). On the other hand, Yes Bank and HDFC Bank have reduced FD interest rates for deposits below ₹2 crore. IndusInd Bank and Punjab & Sindh Bank have also revised FD interest rates on term deposits in October 2023.

On October 6, the Reserve Bank of India (RBI) decided to keep interest rates unchanged, maintaining the benchmark repo rate at 6.50 percent for the fourth consecutive time since February 2023. In parallel, Bank of Baroda has launched its festive campaign, named “BOB Ke Sang Tyohaar Ki Umang,” featuring innovative schemes. This festive campaign is set to continue until December 31, 2023, and the bank has observed an encouraging response from customers.