Bank of Baroda has hiked interest rates for fixed deposits under ₹2 crore as benchmark interest rates remain elevated.
What Happened? The public sector lender has raised interest rates on fixed deposits by 30 bps with effect from May 12. Both regular customers and senior citizens can claim higher interest rates on deposits.
Should You Start Saving? For deposits with tenures of between one week and 45 days, the bank will offer between 3% and 5.75%. For those maturing between one and two years, the bank will offer 6.75%. For tenures of between two and three years, the bank will offer a high-yielding rate of 7.05%.
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Bank of Baroda offers its highest interest rate of 7.25% on its special Baroda Tiranga Plus Deposit Scheme, which has a tenure of 399 days.
More For Senior Citizens: The bank offers an additional 50 basis points to senior citizens for each tenure, which means they can secure an interest rate of 7.55% on the high-yielding two-to-three-year tenure.
On the Tiranga Plus deposit scheme, senior citizens can earn a total interest of 7.75%.
High-Interest Rate Environment: India’s repo rate currently sits at 6.5%, the highest since 2018. The country’s central bank has raised the benchmark rate in order to slow inflation and keep the rupee stable. This means that interest rates on savings are likely to stay elevated for the time being.
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