Mumbai: State-owned Bank of Baroda (BoB) has increased the interest rate on fixed deposits (FDs) for various maturities. The interest rates are hiked by up to 125 basis points. Interest rate on term deposits up to Rs 2 crore was hiked from 10 basis points to up to 125 basis points on various maturity tenures.
The highest increase of 125 basis points has been effected in the 7-14 days bucket where interest rate has been increased from 3 per cent to 4.25 per cent. It is followed by a 15-45 days maturity period with a 100 basis point hike to 4.50 per cent.
Also Read: Union government increases interest rates on small savings schemes: Details
‘Increasing interest rates in shorter-term maturities will not only greatly benefit depositors who keep deposits for shorter maturities but will also contribute to the Bank’s objective of balancing and optimising the overall cost of deposits and protecting its Net Interest Margin (NIM),’ BoB said in a statement.
Earlier this week, SBI raised interest rates on some term deposits by up to 50 basis points.
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