Soon after Kotak Mahindra raised its interest rates on fixed and recurring deposits, Bank of Baroda too raised its fixed deposit (FD) rates with effect from July 28.
Now, the rate of interest for one year is 5.30 percent, for a longer tenure of above one year and up to 2 years, the rate of interest would be 5.45 percent. For two years and up to 10 years, the rate of interest is 5.5 percent.
For shorter tenure fixed deposits, the rate of interest is anywhere between 3 to 4.65 percent.
For deposits between 7 to 45 days, the rate of interest is 3 percent, for deposits between 46 days to 180 days, the rate of interest is 4 percent.
And for deposits of tenure between 181 days and up to one year, the rate of interest is 4.65 percent.
The fixed deposit interest rates will be higher for bulk deposits i.e., in excess of ₹2 crore and up to ₹10 crore.
The one-year FDs of over ₹2 crore and up to ₹10 crore will fetch 6.5 percent. The deposits of tenure above one year and up to two years will offer interest at the rate of 6.25 percent. The deposit of tenure between 2 to 3 years will offer interest of 6 percent.
The term deposits of tenure between 3 to 5 years will fetch 5.25 percent interest rate, and the term deposits of tenure between 5 to 10 years will bring an interest of 5 percent.
The interest rate on savings bank accounts remains the same ever since it was changed to 2.75 percent on June 15, 2022.
It is noteworthy to mention here that ever since the banking regulator RBI raised repo rates by 90 basis points in a span of two months, commercial lenders have been raising interest rates on term deposits as well as savings account one after the other.
In July itself, Kotak Mahindra and Punjab National Bank have raised their interest rates. HDFC Bank raised its FD rates in June, South Indian Bank raised in April followed by Bajaj Finance Bank.