Bank of Baroda has increased the interest on Fixed Deposit (FD). That is, now you will get more interest on FD. Now interest from 3.00 to 5.50% will be available on FD. The new interest rates have come into effect from July 28. Earlier on July 26, Kotak Mahindra Bank also increased the interest rates of fixed deposits (FD).
Now how much interest on FD in Bank of Baroda
| Duration | New Interest Rate (%) |
| 7 to 45 days | 3.00 |
| 46 to 180 days | 4.00 |
| 181 days to less than 1 year | 4.65 |
| 1 year | 5.30 |
| 1 year 1 day to 2 years | 5.45 |
| 2 years 1 day to 10 years | 5.50 |
Kotak Mahindra Bank also hiked FD interest rates
Kotak Mahindra Bank has also recently increased fixed deposit (FD) interest rates. After the new change, now you will get 5.60% annual interest on FD for 1 year. The new interest rates have come into effect from July 26.
How much interest will you get on FD in Kotak Mahindra Bank
| Duration | Interest Rate (in %) |
| 7 – 30 days | 2.50 |
| 31 – 90 days | 3.00 |
| 91- 179 days | 3.50 |
| 180 – 363 days | 4.75 |
| 364 days | 5.25 |
| 365 – 389 days | 5.60 |
| 390 days to less than 3 years | 5.75 |
| 3 to 10 years | 5.90 |
Keep these things in mind before getting FD
Do not invest the entire money in a single FD
If you are planning to invest Rs 10 lakh in FD in any one bank, then instead invest in 9 FDs of Rs 1 lakh and 2 FDs of Rs 50,000 in more than one bank. Do it. With this, if you need money in the middle, you can arrange money according to your need by breaking the FD in the middle. Rest of your FD will be safe.
For how many years to invest in FD
fixed deposits, it is important to think carefully before deciding on its tenure. This is because if the investors withdraw the amount before maturity, they will have to pay the penalty. Breaking the FD before maturity will attract a penalty of up to 1 per cent. This can reduce the total interest earned on the deposit. That’s why choosing a tenure without understanding can get you in trouble. Long term FDs should be avoided in the greed of high interest.
Withdrawal of Interest
Earlier in the bank there was an option to withdraw interest on quarterly and yearly basis, now some banks can also do monthly withdrawal. You can choose it according to your need.
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