Bank of Baroda Hikes Interest Rates on 555-Day Fixed Deposits: New Returns Detailed
Source: GNews Fixed Income
Arth Insight · What this means for your wallet
- Bank of Baroda now offers 7.10% interest for the general public on 555-day FDs.
- Senior citizens get a higher rate of 7.60% for the same tenure.
- The revised rates apply to retail deposits below ₹3 crore.
Bank of Baroda (BoB) has increased interest rates on its special 555-day 'bob-360' term deposit scheme, offering up to 7.60% for senior citizens. The move aims to attract retail depositors amidst tightening liquidity in the banking system.
- ▸Bank of Baroda now offers 7.10% interest for the general public on 555-day FDs.
- ▸Senior citizens get a higher rate of 7.60% for the same tenure.
- ▸The revised rates apply to retail deposits below ₹3 crore.
- ▸A ₹5 lakh deposit can earn up to ₹56,000 in interest for general customers over 555 days.
- ✓Bank of Baroda now offers 7.10% interest for the general public on 555-day FDs.
- ✓Senior citizens get a higher rate of 7.60% for the same tenure.
- ✓The revised rates apply to retail deposits below ₹3 crore.
- ✓A ₹5 lakh deposit can earn up to ₹56,000 in interest for general customers over 555 days.
Bank of Baroda (BoB), one of India's leading public sector lenders, has announced an upward revision in interest rates for its specialized 555-day fixed deposit (FD) scheme. The revised rates are designed to offer competitive returns to retail investors looking for a medium-term commitment of approximately 18 months.
New Interest Rate Structure
Under the revised schedule, the bank is offering the following annual interest rates for the 555-day tenure:
- General Public: 7.10% per annum
- Senior Citizens: 7.60% per annum (includes an additional 0.50% premium)
These rates apply to domestic term deposits of less than ₹3 crore. The bank has positioned this specific tenure to compete with other major public and private sector banks that have recently adjusted their deposit rates to shore up their credit-to-deposit ratios.
Projected Earnings for Investors
For retail savers, the hike translates into tangible gains over the 555-day period. Here is a breakdown of what different investment amounts will earn at the 7.10% rate for the general public:
- ₹1 Lakh Investment: An investment of ₹1,00,000 will earn approximately ₹11,200 in interest, bringing the maturity value to roughly ₹1,11,200.
- ₹2 Lakh Investment: A deposit of ₹2,00,000 will generate interest of about ₹22,400, resulting in a maturity amount of ₹2,22,400.
- ₹5 Lakh Investment: For a larger deposit of ₹5,00,000, the interest earned will be approximately ₹56,000, totaling ₹5,56,000 at maturity.
Senior citizens will see even higher returns due to the 7.60% rate. For instance, a ₹5 lakh deposit by a senior citizen would yield approximately ₹60,150 in interest over the same period.
Context and Strategy
The rate hike comes at a time when Indian banks are aggressively competing for low-cost deposits. With credit growth outpacing deposit growth across the industry, lenders like Bank of Baroda are using 'special bucket' tenures (like 555 days) to lock in funds without raising rates across all maturity periods. This strategy helps the bank manage its cost of funds while providing attractive options for yield-seeking retail customers.
This report is for informational purposes only and does not constitute financial advice. Interest rates are subject to change as per bank policy.
Bond / FD returns and credit ratings are indicative and subject to issuer credit risk and interest-rate risk. Verify current terms with the issuer. Some listings may be sponsored. Not investment advice.
Frequently Asked Questions
What is the new interest rate for senior citizens at Bank of Baroda for 555 days?
Senior citizens are eligible for an interest rate of 7.60% per annum on the 555-day fixed deposit scheme.
Does this rate apply to deposits above ₹5 crore?
No, these specific rates are for domestic term deposits of less than ₹3 crore.
How much will ₹1 lakh earn in the 555-day BoB FD?
For the general public, a ₹1 lakh deposit will earn approximately ₹11,200 in interest at the 7.10% rate.
Join the Arth Vani channels
Daily news summaries, IPO & market alerts on Telegram and WhatsApp.
Because you read about Fixed Income
BreakingSBI Amrit Vrishti vs. Indian Bank IND Prosper FD: A Look for ₹5 Lakh Savers
Retail investors are comparing special fixed deposit schemes like SBI's Amrit Vrishti and Indian Bank's IND Prosper FD, particularly for investments of ₹5 Lakh over their unique tenures of 444 and 777 days, respectively. While these deposits aim to offer competitive returns, prospective investors are urged to verify the latest interest rates directly from the banks.
Banks Raise Deposit Rates, Lending Costs Up After RBI Hike
Indian banks have started increasing interest rates on fixed deposits following recent repo rate hikes by the Reserve Bank of India (RBI). This move aims to attract more savers but consequently leads to higher borrowing costs for loans across various categories.
New LaunchBreakingBank of India Revises FD Rates, Launches Special 500-Day Deposit Scheme
Bank of India has announced a revision to its Fixed Deposit (FD) interest rates, alongside the introduction of a new 500-day special FD scheme. These changes aim to offer competitive returns, especially benefiting senior citizens who typically receive enhanced interest rates on their deposits.
Related Stories
BreakingSBI Amrit Vrishti vs. Indian Bank IND Prosper FD: A Look for ₹5 Lakh Savers
Retail investors are comparing special fixed deposit schemes like SBI's Amrit Vrishti and Indian Bank's IND Prosper FD, particularly for investments of ₹5 Lakh over their unique tenures of 444 and 777 days, respectively. While these deposits aim to offer competitive returns, prospective investors are urged to verify the latest interest rates directly from the banks.
Banks Raise Deposit Rates, Lending Costs Up After RBI Hike
Indian banks have started increasing interest rates on fixed deposits following recent repo rate hikes by the Reserve Bank of India (RBI). This move aims to attract more savers but consequently leads to higher borrowing costs for loans across various categories.
New LaunchBreakingBank of India Revises FD Rates, Launches Special 500-Day Deposit Scheme
Bank of India has announced a revision to its Fixed Deposit (FD) interest rates, alongside the introduction of a new 500-day special FD scheme. These changes aim to offer competitive returns, especially benefiting senior citizens who typically receive enhanced interest rates on their deposits.
New LaunchUS Insurtech Lemonade Expands Renters Insurance Nationwide
US-based insurtech company Lemonade has announced the nationwide expansion of its renters insurance product across the United States, following an initial launch in Minnesota. This move makes their digital-first renters insurance accessible to a broader American market, reflecting a trend towards accessible, technology-driven insurance solutions.