FD Interest Rate Hike: If you have got Fixed Deposit (FD) done in banks to secure your savings, then there is news of work for you. A public sector bank has announced to increase the interest rates on FD, due to which the customers are shocked.
FD Interest Rate Hike: Getting fixed deposit (FD) in banks for safe savings is still considered the safest. The reason for this is the good interest available on FD, due to which people are motivated to invest money in it. Now good news has come out for the people who have got FD in the bank. Public sector Bank of Baroda has announced a hike in interest rates on fixed deposits.
Bank of Baroda hikes interest rates on FDs
Let us inform that the Reserve Bank of India (RBI) has recently increased the repo rate. Since then, banks have also started increasing their interest rates. Banks are now increasing the interest rates on loans as well as increasing these rates on the amount deposited in them. That is, if you are incurring some loss due to increasing interest rates, then there is also some benefit. In this episode, now the Bank of Baroda of the government sector has also announced an increase in the rates of interest on FD.
According to the announcement made by Bank of Baroda, now FDs that are completed in 1 year will get interest at the rate of 5.30 percent. Whereas on FDs of 1 to 2 years, interest will continue to be available at the rate of 5.45 percent as before. If we talk about FD for 2 to 3 years, then 5.50 percent will be available on it. Whereas the interest rate on FDs with a tenure of 3 to 10 years has been increased from 5.35 percent to 5.50 percent.
More interest will be available on short term deposits
The bank has also announced to increase interest rates on short-term FDs. Now the interest rates of FDs maturing in 7 to 45 days have been increased from 2.80 percent to 3.00 percent. At the same time, the interest rates of FDs to be completed in 46 to 180 days have been increased from 3.70 percent to 4.00 percent. Apart from this, the bank will now pay interest at the rate of 4.65 percent instead of 4.30 percent on fixed deposits from 181 days to 270 days. At the same time, deposits with a tenure of 271 days to 1 year will also get interest at the rate of 4.65 percent.
Increased interest rates from July 28
According to the announcement of Bank of Baroda, the increased interest rates of FD have come into effect from July 28 i.e. Thursday. The bank has increased these interest rates for FDs with deposits less than Rs 2 crore. According to the announcement of the bank, now it is giving interest rates ranging from 3 to 5.50 percent for common public and 3.50 percent to 6.50 percent for senior citizens. Let us inform that before Bank of Baroda, many other banks including Punjab and Sind Bank, Indian Overseas Bank, Axis Bank, SBI, IDBI have also announced to increase their FD interest rates.