Bank fixed deposits are the most popular investment tools for those who are looking for guaranteed income with minimum or no risk. Many surveys have stated that investors, especially senior citizens, opt for fixed deposit schemes for their assured returns. Since May 2022, banks have been tweaking their interest rates on fixed deposits (FDs) in line with consecutive repo rate hikes by the Reserve Bank of India (RBI). After the festive rush, three banks, Bank of Baroda, Canara Bank, Bank of India, have floated new FD rates for their different schemes. Here’s a close look:
Bank of Baroda
Bank of Baroda has launched the Baroda Tiranga Plus Deposit Scheme, which will offer higher interest rates of up to 7.50 per cent a year for 399 days. The scheme is applicable on retail term deposits below Rs 2 crore. The scheme is already effective from November 1, 2022. Senior citizens will get an extra 0.50 per cent a year.
The bank is offering an increased premium on Non-Callable Retail Term Deposits from 0.15 per cent to 0.25 per cent a year. Non-callable deposits will now receive 0.25 per cent extra yearly.
| Callable | Non-Callable | |||
| Tenor | General/NRE/NRO | Senior Citizens | General/NRE/NRO | Senior Citizens |
| 399 days | 6.75% p.a. | 7.25% p.a. | 7.00% p.a. (6.75 + 0.25) | 7.50% p.a. (6.75 + 0.25 + 0.50) |
(For schemes Rs 15.01 lakh to less than Rs 2 crore)
“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 per cent to 0.25 per cent on retail term deposits, providing further benefits to customers,” said Ajay K. Khurana, Executive Director, Bank of Baroda.
| Tenors | Revised Rates (w.e.f. 01.11.2022) | Revised Rates for Senior Citizens (w.e.f. 01.11.2022) |
| 1 Year | 5.75% | 6.25% |
| Above 1 Year to 400 Days | 5.75% | 6.25% |
| Above 400 Days to 2 Years | 5.75% | 6.25% |
| Above 2 Years to 3 Years | 5.80% | 6.30% |
| Above 3 Years to 5 Years | 5.90% | 6.55% |
| Above 5 Years to 10 Years | 5.90% | 6.90% |
| 444 Days | 6.00% | 6.50% |
| 555 Days | 6.25% | 6.75% |
Bank of India (BoI)
The bank has introduced a special fixed deposit scheme, which will offer higher interest rates. On Wednesday, BOI launched 'Star Super Triple Seven Fixed Deposit' scheme, which is available for a limited time period. Under the new scheme, depositors can earn an interest rate of 7.25 per cent and up to 7.75 per cent for senior citizens on a deposit for 777 days.
Besides this scheme, the bank has also raised the interest rates to 6.30 per cent on the 555-days fixed deposit scheme.
Canara Bank
Public sector bank Canara Bank has introduced a special fixed deposit scheme that provides 7.50 per cent interest for a period of 666 days. The bank under the scheme is offering a 7 per cent rate for general investors. For senior citizens, it will offer 7.5 per cent interest for any amount under Rs 2 crore.
Many banks have raised their FD rates in recent weeks. Unity bank, which is a digital-first bank small finance bank, has floated a scheme called Shagun 366, which offers 7.8 per cent interest rates for deposits maturing in 366 days. Under the same scheme, senior citizens can earn an 8.3 per cent interest rate for the same time period. The offer is available till November 30, 2022.