Banks have started offering higher interest rates to entice more clients as a result of the increase in the repo rate and the expanding credit deposit difference.
As an illustration, the Bank of Baroda recently announced the introduction of the Baroda Tiranga Plus Deposit Scheme, which will offer higher interest rates of up to 7.50% p.a. for 399 days beginning on November 1, 2022, with additional discounts of 0.50% p.a. for senior citizens and 0.25% for non-callable deposits. Retail term deposits under Rs 2 crore are eligible for the programme.
Additionally, the premium on Non-Callable Retail Term Deposits has been raised by the bank from 0.15% per year to 0.25% per year. As a result, non-callable deposits will receive an additional 0.25% yearly.
Similarly, the Bank of India upped FD rates on Tuesday and is now offering a limited-time deal on their “Star Super Triple Seven Fixed Deposit” that pays up to 7.75 % interest.
Depositors can earn an interest rate of 7.25 % under the recently introduced Fixed Deposit Scheme on a deposit for 777 days, while senior persons can earn up to 7.75 %. The bank has also increased the interest rate on its current 555-day fixed deposit scheme to 6.30 % in addition to this new offering. The bank has raised interest rates on additional time buckets from 180 days to less than 5 years by 25 basis points.
Ajay K. Khurana, Executive Director of Bank of Baroda said, “In a rising interest rate environment, we are pleased to offer a higher interest rate to consumers so that they earn more on their savings. The Baroda Tiranga Plus Deposit Scheme offers higher interest rates and assured returns. On our Non-Callable Deposits, the Bank has also decided to increase the Non-Callable Premium from 0.15 to 0.25 per cent on retail term deposits, providing further benefits to customers.”