Bank of Baroda FD Rates 2026: Earn 7.25% on 444 Days; Senior Citizens Get 7.35%

Mumbai: In a strategic move to aggressively capture the retail deposit market, Bank of Baroda (BoB), India's second-largest public sector lender, has announced a significant revision to its Fixed Deposit (FD) interest rates for 2026.

While private lenders like HDFC and ICICI are maintaining steady rates, BoB has introduced a "Spread Advantage" on its medium-term buckets, offering up to 7.35% per annum for super senior citizens.

The "444-Day" Alpha: Why It’s the Market Leader

The most striking feature of the new rate card is the "bob 444 Days Special". Financial analysts are calling this the "sweet spot" of Indian banking right now.

Current ROI Breakdown (Effective Feb 2026):

• Retail Investors: 6.75%

• Senior Citizens (60-80 years): 7.25%

• Super Senior Citizens (Above 80 years): 7.35%

Comparative Analysis: BoB vs. Competitors (1-2 Year Bucket)

Moneycontrol readers often look for comparisons. Here is how BoB stacks up against the Big Three:

3 Reasons to Switch Your Savings to BoB Today

1. Inflation-Beating Real Returns

With the current CPI inflation hovering around 4.8%–5.1%, a 7.25% FD yield provides a "Real Rate of Return" of over 2%. This is crucial for protecting your purchasing power in 2026.

2. The 'bob World' Digital Edge

Unlike traditional banking hurdles, BoB allows you to break or create FDs via the bob World app with zero paperwork. If you need urgent cash, the Overdraft (OD) facility is available at just 1% above your FD rate.

3. Quarterly Compounding Benefit

BoB uses quarterly compounding for its term deposits. This means your "Effective Yield" at the end of the year is actually higher than the "Quoted Rate."

Expert Verdict: "If you have surplus cash sitting in a savings account earning a mere 2.75% to 3%, moving it to the BoB 444-day FD will more than double your interest income with zero risk." — Market Strategist.

Tax Implications You Can’t Ignore

Investors should remember that FD interest is taxable as per their income tax slab.

• TDS: 10% if interest exceeds ₹40,000 (₹50,000 for seniors).

• Strategy: Submit Form 15G/15H immediately upon booking the FD to avoid TDS deduction if your total income is below the taxable limit.

Final Checklist for Investors

1. Check Tenure: Don't just go for 1 year; the 444-day special gives 0.50% more.

2. Nomination: Ensure a nominee is added digitally to avoid legal hassles.

3. Re-investment: Opt for the "Cumulative" option if you don't need monthly payouts to maximize compounding.