Fixed deposit investors have received a fresh opportunity to earn better returns as Bank of Baroda and Indian Overseas Bank have revised interest rates on selected fixed deposit schemes. The changes have come amid increasing competition among banks to attract deposits and meet growing demand for funds.
Bank of Baroda Raises Interest on 555-Day FD
Bank of Baroda has increased the interest rate on its special 555-day Golden Goal Deposit Scheme from 6.75% to 6.85% for general customers. The revised rates became effective November 11.
Senior citizens can now earn 7.35% interest, while super senior citizens are eligible for an interest rate of 7.45% on this special deposit.
The bank’s other fixed deposit options continue to offer different interest rates depending on the selected investment period.
Indian Overseas Bank Revises 444-Day Deposit Rate
Indian Overseas Bank has also increased the interest rate on its special 444-day fixed deposit scheme from 6.60% to 6.75% for general customers.
Senior citizens can receive an additional 0.50 percentage point, taking the highest rate to 7.25%. Super senior citizens are eligible for an additional 0.75 percentage point, making the highest available rate 7.50%.
However, the bank has reduced interest rates on deposits with tenures between 180 and 269 days from 4.75% to 4.50%.
Why Are Banks Increasing FD Rates?
Banks are facing growing competition to attract deposits as demand for loans continues to remain strong. Credit growth has been outpacing deposit growth, encouraging lenders to offer more attractive returns on selected fixed deposit periods.
The changes also reflect adjustments in the banking sector following recent movements in RBI policy rates.
What Should Depositors Know?
The revised rates apply to eligible fresh deposits and renewals, rather than automatically changing the returns on existing fixed deposits
