The New Year kicked off on an upbeat note for conservative investors as state lenders Punjab National Bank and Bank of Baroda raised interest rates on fixed deposits (FDs) with effect from January 1 and December 26, respectively.
Punjab National Bank raised its FD interest rates with effect from January 1, 2023. Now, term deposits with tenor between one year to 665 days will offer interest at the rate of 6.75 percent per annum, 45 basis points higher than earlier.
Term deposits with a tenor of 666 days will continue to offer the same rate of interest i.e., 7.25 percent.
The fixed deposits with tenor between 667 days to 3 years will now give an interest of 6.75 percent, and the deposits with tenor longer than this will offer an interest of 6.5 percent per annum.
Bank of Baroda FD rates
Now, the term deposits of one-year tenor with Bank of Baroda will offer an annual interest rate of 6.75 percent per annum against 6.10 percent earlier. The deposits of tenor between one year to three years will also give an interest of 6.75 percent.
However, the long-tenor deposits i.e., between three years to 10 years will give relatively lower interest of 6.25 percent per annum to depositors.
It is worth mentioning here that Baroda Tiranga Deposit Scheme for tenors of 444 days and 555 days will offer 6.75 percent per annum after the latest revision of interest rates.
At the same time, the Baroda Tiranga Plus Deposit Scheme of tenor of 399 days will offer 7.05 percent to depositors.
The non-callable deposits with Bank of Baroda will now offer relatively higher interest rates with effect from December 26.The deposits of tenor between one to three years will now offer an interest at the rate of 7 percent per annum.
The term deposits in the category of non-callable deposits with longer tenor (i.e., longer than three years) will now offer 6.5 percent per annum. The amount that can be deposited under non-callable deposits is between ₹15 lakh to ₹2 crore.
At the same time, the tax-saving fixed deposits (FDs), after the latest revision of interest rates, will now give 6.25 percent interest to depositors.
However, depositors must apprise themselves of the fact that the tax-saving deposits have a minimum tenor of five years.