Bank of Baroda launches 555-day fixed deposit scheme offering rates up to 7.40%

State-owned lender Bank of Baroda has launched a new retail term deposit scheme, ‘bob Golden Goal Deposit Scheme’, offering interest rates of up to 7.40% per annum for a tenure of 555 days, as banks intensify efforts to shore up deposits amid changing interest rate expectations and heightened competition for liabilities.

The scheme offers an interest rate of 6.75% per annum for general customers, 7.25% for resident senior citizens and 7.35% for resident super senior citizens aged 80 years and above.

For non-callable deposits, which do not permit premature withdrawal, the bank is offering rates of 6.80% for general customers, 7.30% for senior citizens and 7.40% for super senior citizens.

The special deposit scheme is applicable on retail term deposits of less than ₹3 crore.

The move follows the Reserve Bank of India’s recent measures aimed at boosting foreign currency inflows, including the temporary relaxation of regulations governing Bank of Baroda which are expected to support banks’ foreign currency resources.

Bank of Baroda said customers can open the fixed deposit through its mobile banking app, internet banking platform or by visiting branches. New-to-bank customers can also book the deposit online without opening a savings account.

The lender said the scheme is aimed at providing depositors an opportunity to lock in returns for a fixed period amid the evolving interest rate environment.