Bank of Baroda has hiked its FD rate to 7.45% on a 555-day plan. This is as reported by Trade Brains. According to the report, a ₹10 lakh deposit can earn up to ₹1.18 lakh in interest.
For you, that means a higher locked-in return for about 18 months. Check which customer group gets 7.45% before you book. The top rate may not apply to everyone.
Key takeaways
- The reported rate is 7.45% for a 555-day term.
- Trade Brains says ₹10 lakh can earn up to ₹1.18 lakh.
- Your own rate may differ by age and deposit type.
- FD interest is taxable, and deposits are insured up to ₹5 lakh per bank.
- Compare other banks on our interest rates page before you lock in.
How a 555-day FD works
A fixed deposit, or FD, is simple. You give a bank a lump sum for a set time. The bank pays a fixed rate and returns your money at the end.
A 555-day FD runs for about 18 months and 10 days. That's roughly 1.5 years. Banks often launch odd terms like this to attract deposits.
The rate is locked on the day you book. If rates fall later, your return stays the same. If rates rise, you don't get the extra.
What ₹10 lakh could earn in 555 days
Let's check the math. Simple interest on ₹10 lakh at 7.45% for 555 days is about ₹1.13 lakh. Most banks add interest back to your deposit every quarter. That lets interest earn interest, so the total comes out higher.
That's why the reported figure of about ₹1.18 lakh is in the right range. The exact number depends on how your bank pays interest. Here's a rough guide.
| Deposit | Simple interest (approx.) | Estimate with quarterly compounding (approx.) |
|---|---|---|
| ₹2 lakh | ₹22,600 | ₹23,600 |
| ₹5 lakh | ₹56,600 | ₹59,000 |
| ₹10 lakh | ₹1,13,300 | ₹1,18,000 |
The last column is scaled from the reported figure. Your bank's receipt will show the exact maturity amount.
Who is affected
This matters most to savers with idle cash. It also helps anyone whose older FD is about to mature. Retirees who need steady, low-risk income may find it useful too.
Many banks pay senior citizens a little extra. So ask for your own rate, not just the headline number.
If you're a borrower, this story won't change your EMI. It only shows what banks are paying to attract deposits. You can still plan your loans with our EMI calculators.
What to do now
Take a few minutes before you book. Here's a simple checklist.
- Ask the bank for the exact rate for your age group.
- Check if the plan is open for new deposits right now.
- Choose between cumulative (interest paid at the end) and payout (interest paid regularly).
- Compare at least two other banks for the same term.
- Keep your emergency fund separate, since early exit usually means a penalty.
Also remember tax. FD interest is added to your income and taxed at your slab rate. The bank may cut tax at source, called TDS, once your yearly interest crosses a set limit.
One more point is safety. Deposit insurance covers up to ₹5 lakh per depositor per bank, including interest. If you plan to put in more, think about splitting it across banks. For more stories like this, visit our news hub.
Frequently asked questions
What is the new Bank of Baroda 555-day FD rate?
According to Trade Brains, the rate is 7.45% on a 555-day deposit. Confirm the rate for your category with the bank before you book.
How much interest will ₹10 lakh earn?
The report says up to ₹1.18 lakh over 555 days. Simple interest would be about ₹1.13 lakh. Quarterly compounding pushes it higher.
Is the interest on this FD taxable?
Yes. FD interest is added to your income and taxed at your slab rate. The bank may cut tax at source, called TDS, once your yearly interest crosses a set limit.
BankCreds analysis
What the headline leaves out
A 7.45% rate sounds big, but check what you keep. A saver in the 30% tax slab keeps about 5.1% after tax. On ₹10 lakh, that's roughly ₹82,000 over 555 days, not ₹1.18 lakh.
The gain is best for people in low tax slabs and for retirees who need steady income. For them, a rate like this can beat many regular FD offers. Many large banks pay less on one to two year deposits, so the gap may be real.
Don't read this as a sign that all FD rates are rising. A single special tenure is often a bank's way to pull in deposits for a short time. It can end quickly. If you have spare cash, decide this week. If your money may be needed within a year, skip it. Early exit usually costs you a penalty.
This section is BankCreds' own assessment of what the development means for Indian borrowers and savers. It is independent commentary, not part of the source reporting above.
Sources & references
- Trade Brains — originating report https://tradebrains.in/money/bank-of-baroda-fd-rate-hiked-to-745-10-lakh-investment-earns-up-to-118-lakh-interest-in-555-days-check-details-12805285
- DICGC deposit insurance — deposits are insured up to ₹5 lakh per depositor per bank https://www.dicgc.org.in/
Source links are shown as plain text, not clickable links. Copy a URL into your browser to read the original report.
Editorial note & disclaimer
How this was reported. The development above is attributed to the source or sources listed. BankCreds does not independently verify a third party's reporting; where a figure or a regulatory position is stated as fact, it is either attributed or drawn from the regulator's own published material. Everything under "BankCreds analysis" is our own assessment.
Rates and figures. Interest rates, per-gram values and premium bands quoted here are indicative, move daily, and differ by borrower profile, city and lender policy. Confirm the final number with the institution before you act on it — the sanction letter or policy schedule governs, not a news report.
Not financial advice. This article is general information for an Indian audience. It is not investment, tax, credit or insurance advice, takes no account of your circumstances, and BankCreds is not a lender, broker, distributor or advisor. Consider speaking to a SEBI-registered investment adviser or a qualified professional before acting.
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