New Delhi: A few days after the State Bank of India (SBI) decision to raise FD rates, the Bank of Baroda (BoB) announced a hike in interest rates on fixed deposits (FDs) across various maturity periods. The decision is effective from December 29, 2023.


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BoB disclosed that interest rates on term deposits up to Rs 2 crore will witness an increase ranging from 10 basis points to a significant 125 basis points across different maturity brackets. (Also Read: Small Savings Schemes: Govt Hikes Sukanya Samriddhi Yojana Interest Rate; Check New Rates Here)


The most substantial rise of 125 basis points is implemented in the 7-14 days maturity bucket, elevating the interest rate from 3 percent to 4.25 percent. (Also Read: Stock Market Holidays 2024: NSE, BSE To Remain Close On...; Check Full List Here)


Following closely is the 15-45 days maturity period, enjoying a 100 basis point surge to 4.50 percent. Notably, the rate hikes primarily target shorter-term maturity periods, specifically those under 1 year.


BoB emphasized the benefits for depositors opting for shorter maturities while aligning with the bank's strategy to enhance its share of shorter-term retail term deposits.


The bank clarified that this move is pivotal for achieving a balance and optimization of the overall cost of deposits, safeguarding its Net Interest Margin (NIM). BoB views the adjustment as a strategic step in catering to the needs of depositors and ensuring a competitive edge in the market.