In recent months, banks have introduced new Fixed Deposit (FD) products and revised interest rates to meet the needs of their customers. These updates offer a combination of higher returns, flexibility, and targeted options for specific customer segments.

Here’s a look at the latest changes in the FD space.

Bank of Baroda launches bob Liquid Fixed Deposits

Bank of Baroda has introduced the bob Liquid Fixed Deposit, which offers a balance of higher returns and flexible liquidity.

This FD allows customers to make partial withdrawals without closing the entire deposit.

Key features of the bob Liquid FD include:

• Minimum deposit of ₹5,000, with increments of ₹1,000.
• Duration ranging from 12 to 60 months.
• Interest rates based on prevailing FD rates.
• Premature partial withdrawals allowed, with no penalty for amounts up to ₹5 lakh after 12 months.

IDBI Bank launches Chiranjeevi-Super Senior Citizen FD

IDBI Bank has launched the IDBI Chiranjeevi-Super Senior Citizen FD, specifically designed for individuals aged 80 years and above.

This FD offers higher interest rates, providing an additional 65 basis points (bps) over standard FD rates and 15 bps over senior citizen rates.

Key features of the FD include:

• 8.05% p.a. for a 555-day tenure.
• 7.90% p.a. for 375 days.
• 8.00% p.a. for 444 days.
• 7.85% p.a. for 700 days.

Federal Bank revises FD rates

Federal Bank has revised its FD interest rates, effective January 10, 2025. The highest rate offered now stands at 8% p.a. for a 444-day tenure, with the general rate at 7.5% and senior citizen rate at 8%.

Even small changes in interest rates can have a impact on returns. For example, a 50 basis point higher interest rate on a ₹5 lakh FD can result in an additional ₹12,500 over a five-year period.