- By Aditya Pratap Singh
- Mon, 15 Jan 2024 08:16 PM (IST)
- Source:JND
Bank Of Baroda Revised Interest Rates On Saving: Public sector lender Bank of Baroda announced a new deposit scheme on Monday, paying interest at 7.1-7.6 per cent per annum.
Bank of Baroda said in a statement that its special short-term retail deposit scheme offers an interest rate of 7.60 per cent per annum for senior citizens and 7.10 per cent for the general public. The scheme has been opened from Monday and the interest rate applies to retail deposits below Rs 2 crore.
Earlier the interest rate was 6.25%
The bank was earlier offering 6.25 per cent on total deposits for 271 days. Existing and new customers of the bank can open this bulk deposit scheme called BoB360 at any branch online or through the mobile app or net banking.
As more people invest in mutual funds and stock markets, as they offer better returns, the banks are offering higher interest on deposits to attract customers. An outflow of money from the banking system can lead to an asset-liability mismatch in banks' books.
The Reserve Bank of India has recently led banks to warn of a possible crisis as policy rates are high and public bank deposits are low, with savings in bank deposits falling between 2.7 and 3 per cent, giving banks a higher price for long-term aggregate deposits. This can eat into your profits in the long run, especially when policy rates fall.