Following the RBI’s second repo rate change in April 2025, many public and private banks have adjusted their fixed deposit (FD) interest rates.
This includes Bank of Baroda and Kotak Mahindra Bank, which both made changes in May 2025. Bank of Baroda reduced its FD rates on deposits under Rs 3 crore.
Kotak Mahindra Bank Cuts Rates by 50 Basis Points
Kotak Mahindra Bank has reduced FD interest rates by 50 basis points for specific periods.
These changes, which took effect from May 5, 2025, apply to both general and senior citizens.
Bank of Baroda’s New FD Rates
Starting May 5, 2025, Bank of Baroda reduced its FD rates for deposits under Rs 3 crore.
The rates for general citizens now range from 4% to 7.10% on FDs with durations from 7 days to 10 years, while senior citizens will receive 4.50% to 7.60%.
For the Baroda Square Drive Deposit Scheme (444 days), general citizens will earn 7.10%, senior citizens 7.60%, and super senior citizens 7.70%.
These rates have decreased slightly from the previous rates of 7.15%, 7.65%, and 7.75% for each category. The new rates are effective from May 5, 2025.
Kotak Mahindra Bank’s New FD Rates
Kotak Mahindra Bank has also reduced its FD interest rate on the 180-day FD from 7% to 6.50%.
This change applies from May 5, 2025, following a previous rate adjustment on April 30, 2025.
Now, general citizens will receive interest rates ranging from 2.75% to 7.15%, while senior citizens will earn 3.25% to 7.65% on FDs under Rs 3 crore.
Why These Changes Matter
These FD rate changes are significant for those seeking secure investments. The lower interest rates mean lower returns, which is especially concerning for senior citizens who rely on FDs for income.
Both Bank of Baroda and Kotak Mahindra Bank regularly adjust their rates based on customer needs.
If you are planning to invest in an FD, compare the updated rates of both banks and choose the one that best suits your requirements, particularly if you are a senior citizen.
