Interest Rates on Fixed Deposits are Increased by Bank of Baroda by up to 125 Basis points

Fixed Deposits

State-owned Bank of Baroda has announced an upward revision in the interest rates on Domestic Retail Term Deposits, including NRO Term Deposits, ranging from 10 to 125 basis points on various maturity buckets, effective from December 29, 2023. These revised rates are applicable to deposits below ₹2 crore. The focus of the rate increase is primarily on shorter-term maturity buckets, especially those less than 1 year. For retail term deposits maturing between seven days to 14 days, the interest rates have been raised to 4.5% from 3%, and senior citizens are offered an interest rate of 4.75%, up from 3.50%. The interest rate for fixed deposits with 15 days to 45 days maturity has been increased to 4.50% from 3.50%, with senior citizens being offered an interest rate of 5% compared to 4% earlier.

The move to increase interest rates in shorter-term maturities is expected to benefit depositors who maintain deposits for shorter durations and aligns with the bank’s strategy to increase its share of shorter-term retail term deposits.

This adjustment is aimed at optimizing the overall cost of deposits and protecting the bank’s net interest margin (NIM). Ravindra Singh Negi, Chief General Manager of Retail Liabilities & NRI Business at Bank of Baroda, emphasized that the decision to increase retail term deposit rates reflects the bank’s commitment to providing higher value to customers while strategically managing its deposit portfolio.

Both existing and new customers of Bank of Baroda can take advantage of the higher rates by opening fixed deposits through any of the bank’s branches across India. The revision in interest rates comes as part of the bank’s efforts to balance and optimize its deposit costs and enhance customer value.

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