Bank of Baroda (BoB) has introduced a 400-day ‘Utsav Deposit Scheme’ for the festive season, offering 7.30 per cent interest to general citizens, even as it has increased interest rates on term deposits (TDs) in the above 3 years to 5 years bucket from 6.50 per cent to 6.80 per cent.
The Utsav Deposit Scheme, which opened today and is applicable on fixed deposits below ₹3 crore, offers senior citizens 7.80 per cent interest, super senior citizens (aged 80 years & above) 7.90 per cent, and up to 7.95 per cent on Non-Callable Deposits. The scheme is a limited period offer.
The 30 basis points (bps) increase in interest rates on TDs in the above 3 years to 5 years bucket will also benefit the bank’s SDP (Systematic Deposit Plan) customers, who can lock-in higher interest rates on each monthly contribution made for a three- to five-year period, according to the public sector bank’s statement.
SDP is a recurring deposit scheme that provides assured returns through regular savings every month.
Further, the interest rates on ‘Earth Green Term Deposits’ have also been increased by 30 bps in select tenors.
BoB said it is introducing, for the first time, a Super Senior Citizen category in TDs where customers aged 80 years and above can benefit from 10 bps additional interest, on top of the senior citizen rate for term deposits above 1 year and up to five years tenor.
Debadatta Chand, Managing Director & CEO, said, with the Utsav Deposit Scheme, depositors can obtain a higher rate of interest at this point in the interest rate cycle.
Further, with the rate increase in the three- to five-year category, the bank is catering to two diverse sets of customers – those looking for competitive and assured returns over the medium-term, as well as customers looking to build their savings through regular contributions every month through bob SDP, and can secure a higher rate of interest for each monthly deposit.