Ahead of the festive season, many banks have increased their rate of interest on fixed deposits to add some spark for the investors. Public sector institution Bank of Baroda has increased interest rates of fixed deposits by up to 20 basis points (bps) across tenors for amounts less than Rs 2 crore. The new interest rates are already effective from September 13, 2022, the website said.
Hawkins Cookers Ltd, which is rated AA- (stable) by Icra, too revised its fixed deposit (FD) rates for different tenors, after keeping the rates unchanged from last year despite a hike in key rates by the central bank in recent months.
Bank of Baroda rates
The bank has increased its FD interest rate on all tenures over one year by 20 basis points (bps). The interest rate on deposits with a one-year maturity date has increased from 5.30 per cent to 5.50 per cent. For a tenure between 1 year and 2 years, the new interest rate is 5.50 per cent, which was 5.45 per cent before.
For 2 years to 3 years, the new rate of interest is 5.55 per cent, while the revised rate for 3 years to 5 years is 5.65 per cent. For the tenure of 5 years to 10 years, the new rate of interest is 5.65 per cent. All senior citizen depositors will get a slightly higher rate of interest.
The new rates are applicable on amounts less than Rs 2 crore:
|Tenor||General depositors||Senior citizens|
|1 year to 400 days||5.50%||6.00%|
|400 days to 2 years||5.50%||6.00%|
|2 years to 3 years||5.55%||6.05%|
|3 years to 5 years||5.65%||6.30%|
|5 years to 10 years||5.65%||6.65%|
Besides, the Bank of Baroda is offering new rates under its Baroda Tiranga Deposit Scheme, which it had floated during the Independence Day celebrations. The special term deposit scheme offers higher interest rates under two tenure buckets. The interest rates offered under this scheme are 5.75 per cent per annum for term deposits of 444 days and 6 per cent per annum for term deposits of 555 days. Senior citizens will get 0.5 per cent interest per annum with the scheme. The scheme is on till December 31 and is applicable on any amount below Rs 2 crore.
|Tenure||General customer (callable)||General customer (non-callable)||Senior citizens (callable)||Senior citizens (non-callable)|
Hawkins Cookers Ltd FD rates
Hawkins Cookers Ltd, which is rated AA- (stable) by Icra, has tweaked its fixed deposit rates for 13 months, 24 months, and 36 months at 7.5 per cent, 7.75 per cent and 8 per cent, respectively. The company offers fixed deposit schemes to people looking to invest in corporate fixed deposits. The FD schemes are available for a minimum tenure of 12 months and maximum tenure of 36 months. The minimum amount that one has to invest is Rs 25,000.
Hawkins Cookers offers the highest rate among corporate FDs of similar credit rating. Compared to rates offered by banks, Hawkins Cookers FD rates are 225-300 basis points (1 basis point is 1/100th of 1 percentage point) higher. However, the interest rates have gradually declined in the last few years. In 2019, the rate of interest was 10.5 per cent for the 36-month tenor. It was reduced from 9 per cent in 2020 to 8 per cent in 2021 and 2022.
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