Bank of Baroda (BoB) has increased interest rates by up to 0.20 per cent on retail fixed deposits of less than Rs 2 crore. Along with the announcement, Bank of Baroda has informed that the new rates have become effective from 13 September 2022.
With the Reserve Bank increasing the prime rates, banks are increasing the interest rates to attract more and more deposits. Earlier, Axis Bank had also announced to increase its FD rates last week. In the last one month, many other banks including SBI, HDFC Bank have increased the deposit rates.
How much did Bank of Baroda increase rates
The bank said on Wednesday that domestic and NRO (Resident Ordinary) fixed deposits of one year tenor will now attract 5.50 per cent interest, as against 5.30 per cent earlier. Similarly, the interest rate on deposits with a tenor of 400 days to three years has been increased from 5.45 per cent to 5.50 per cent. The new rate for tenures ranging from three years to 10 years is 5.65 per cent, which is 0.15 per cent higher than before.
The bank said that the interest rate on one-year deposit for senior citizens will be 6 percent, which was earlier 5.80 percent. Similarly, resident senior citizens will now get interest ranging from 5.95 to 6.50 percent for other tenures. It has increased by 0.15 percent. Bank of Baroda has also increased the interest rate on schemes like Baroda Tax Savings Fixed Deposit and Baroda Advantage Fixed Deposit.
There is further growth forecast Further increase in interest rates is expected in the coming times. Actually, at the end of this month, the Reserve Bank will announce its policy review. With the inflation rate once again reaching 7 percent, it is expected that the Reserve Bank may increase the key rates further.
If this happens, banks can offer better rates to customers to attract deposits. Due to which the gift of increase in deposit rates can also be given in the festive season.
