BOB FD Interest: Good news for those investing in fixed deposits with Bank of Baroda. The state-owned bank has increased interest rates on its special 555-day fixed deposit scheme Golden Goal by 10 basis points. This increase applies to all types of customers and all deposit options, and the new rates became effective November 12. Super senior citizens aged 80 and above will receive the highest interest rate of 7.50% on non-callable fixed deposits.
Who will get how much interest?
For this FD with a maturity period of 555 days (a little over one year and six months), general customers will now receive an annual interest rate of 6.85% on callable deposits and 6.90% on non-callable deposits. These general customers also include NRIs (Non-Resident Indians) holding NRO and NRE accounts. Before the upward correction, these ratios were 6.75% and 6.80%, respectively.
Senior citizens living in the country will receive 7.35 percent. interest with convertible FDs and 7.40 per cent. interest on non-convertible FDs as against the previous 7.25 per cent. and 7.30 percent. Especially for senior citizens aged 80 and over, rates have increased to 7.45% and 7.50%, up from 7.35% and 7.40% previously.
This means that senior citizens receive 0.50 percentage points more interest than regular customers, while senior citizens receive 0.60 percentage points more interest. Which can be used
The scheme is available for fixed deposits of individuals up to Rs 3 crore. The bank clarified that only the interest rates for this 555-day plan have changed; interest rates on all other FDs will remain unchanged. What is the difference between callable and non-callable FDs?
The difference between the two is the flexibility to withdraw funds in the medium term. With a redeemable time deposit, you can withdraw funds before maturity, but the bank’s rules for early withdrawal and fines apply. Non-callable FDs do not have this flexibility except in certain circumstances. In return for this lock-in, banks usually offer slightly higher interest rates on non-convertible FDs, such as an increase of 0.05 percentage points for this scheme.
Why did the bank raise the interest rate? Bina Waheed, CEO, Bank of Baroda, said the hike was aimed at providing higher returns to customers looking for fixed returns over the medium term. She said the move is also aimed at strengthening the bank’s deposit base and supporting its asset and liability management strategy.