Bank of Baroda's 400-day FD offers age-based interest rates

Bank of Baroda currently offers fixed deposits ranging from 7 days to 10 years, with interest rates between 3.50 percent and 7.35 percent. But the bank's 400-day special FD is drawing the most attention right now.

In this 400-day FD, the interest rate varies by age. Those up to 59 years old get 6.25 percent interest. Senior citizens, aged 60 or above, get 6.75 percent. Those aged 80 or above, called super senior citizens, get the highest rate of 6.85 percent.

Depositors can invest up to a maximum of Rs 3 crore in this scheme, making it a good option for those with larger sums to invest.

Bank of Baroda gives senior citizens 0.50 percent more interest than the general rate, and super senior citizens get a further 0.10 percent more than senior citizens, making this FD particularly beneficial for older depositors.

Bank of Baroda revised its FD interest rates this June. Banks generally set their interest rates based on the RBI's repo rate, so FD rates change when the repo rate rises or falls. Anyone considering opening an FD may want to do so soon, since it is uncertain when rates might fall.

The stock market currently carries considerable risk, making it hard to predict gains or losses. An FD, by contrast, keeps money fully secure. Being a public sector bank also removes any cause for concern, and depositors can choose to receive interest payouts monthly or quarterly.

At 400 days, the tenure is a little over a year. The scheme is seen as a good option for those who do not want to lock in their money for too long but still want a good return. Those interested can visit their nearest Bank of Baroda branch or open the FD instantly through mobile banking, with further details available on the bank's website.