Leading banks announced their fixed deposit (FD) interest rates for investors at the end of December. In the new year, a government sector bank of Bank of Baroda (BoB), is offering a bumper deal to its customers by raising interest rates on fixed deposits for various tenures, up to a maximum of 1.25%. This move comes after State Bank of India (SBI), the largest state-owned banking giant, also increased the interest rates on FDs.
In the latest announcement, the Bank of Baroda Bank has raised the interest rates for fixed term deposits up to Rs 2 crore. These new rates will come into effect from December 29, 2023.
The maximum increase in interest rate will be 1.25 percent for deposits held between 7-14 days. Additionally, the interest rate for deposits held between 15-45 days has been increased by one percent to 4.50 percent. Furthermore, the interest rate for deposits of all tenures has been increased from three percent to 4.25 percent.
The Reserve Bank of India (RBI) has reported a decrease in the rate of personal loan disbursements in November. This decline was observed after the RBI imposed punitive risk weighting on loans.
In November, the growth rate of new personal loan disbursements slowed down to 18.6 percent, compared to the growth rate of 19.9 percent recorded during the same period last year.
State Bank is currently offering interest rates on deposits for various terms. You can earn 3.50 percent interest if you deposit for 7-45 days, 4.75 percent for 46-179 days, 5.75 percent for deposits between 180-210 days, 6 percent interest for 211 days to less than a year, and 6.75 percent if you deposit for a term of three to five years.