BoB 675-Day FD: Fixed deposits remain one of the most popular investment choices for people seeking stable returns with minimal risk. With interest rates fluctuating across banks and financial markets, many investors look closely at FD options to make the most of their savings. Bank of Baroda, one of India’s leading public sector banks, has introduced a 675-day fixed deposit scheme with a competitive interest rate for 2026. In this article, we explain how much you can earn if you invest ₹1 lakh in this FD and what the returns would look like by maturity.
Understanding the basics of fixed deposits can help you plan your savings better and choose the right tenure and rate for your financial goals. The 675-day FD from Bank of Baroda falls in the medium-term category, offering higher interest than shorter tenures but without the extended lock-in of long-term deposits.
What Is a 675-Day Fixed Deposit
A fixed deposit is a financial product where you deposit a sum of money with a bank for a predetermined period at a fixed interest rate. Unlike savings accounts, which offer flexible withdrawals, fixed deposits lock in your funds for a specific tenure. In return, the bank pays higher interest.
The 675-day fixed deposit is an unconventional duration, longer than one year but shorter than two years. This mid-range tenure often attracts investors who want better returns than a one-year FD and yet avoid tying up their funds for too long. Bank of Baroda’s offering for this term is particularly attractive for risk-averse investors who seek assured returns.
How Interest on Fixed Deposits Works
Interest on fixed deposits can be paid in two ways. The first is simple interest, where interest is calculated only on the principal amount. The second is compound interest, where interest is calculated on both the principal and the interest accumulated over time. Most public sector banks in India, including Bank of Baroda, offer compound interest on FDs, compounding either quarterly or annually.
For the purpose of this calculation, we will consider compounding annually, which is the common practice for medium-term fixed deposits.
Interest rates on fixed deposits vary depending on the amount invested, the tenure chosen, and the age of the investor. Senior citizens usually receive an additional interest benefit compared to general customers. In this article, the focus is on the returns for a general investor investing ₹1 lakh.
Interest Rate for the 675-Day FD
Bank of Baroda’s interest rate for the 675-day fixed deposit in 2026 is competitive compared to many other banks. The rate offered typically falls between the medium-term and long-term category, reflecting the bank’s strategy to attract medium-duration investments. While exact rates may vary slightly over time or according to internal policies, for this calculation we will assume a representative interest rate that is realistic for the period.
Let us assume the interest rate for the 675-day FD is approximately 7.25 percent per annum. This rate is slightly higher than the average for one-year deposits and rewards depositors for choosing a longer duration. The assumption of a 7.25 percent annual rate allows us to estimate returns with precision while remaining realistic in the current interest rate environment.
How Much Will ₹1 Lakh Grow in 675 Days
To calculate the maturity amount of a fixed deposit, we use the compound interest formula. The basic formula for compound interest is:
Maturity Amount = Principal × (1 + Rate/100) ^ Time
Where principal is the amount invested, rate is the annual interest rate, and time is the period of investment in years.
Since the 675-day FD is not an exact number of years, we need to convert 675 days into years. 675 days is equal to approximately 1.85 years (675 divided by 365). Using this time period in the compound interest formula gives us an accurate estimate of returns.
Let us calculate:
Principal = ₹1,00,000
Annual interest rate = 7.25 percent
Time = 675 days or 1.85 years
Applying these values to the compound interest formula:
Maturity Amount = 1,00,000 × (1 + 7.25/100) ^ 1.85
First, calculate the annual growth factor:
1 + 7.25/100 = 1.0725
Now raise it to the power of 1.85:
1.0725 ^ 1.85 = 1.141 (approximately)
Now multiply this by the principal amount:
1,00,000 × 1.141 = 1,14,100 (approximately)
So, the maturity amount after 675 days will be roughly ₹1,14,100. This means you will earn around ₹14,100 in interest over the term of the FD. This calculation provides a clear picture of how your money grows when you invest in a fixed deposit with mid-term tenure and a solid interest rate.
Comparing Returns to Other Tenures
Investors often wonder how a 675-day FD compares to shorter or longer durations. Let us put this in perspective.
A one-year FD typically earns slightly lower interest because banks offer higher rates for longer durations. For example, a one-year FD might offer around 6.75 percent, resulting in a maturity amount of roughly ₹1,06,900 for a ₹1 lakh deposit. Meanwhile, a two-year FD may offer around 7.5 percent, leading to a higher maturity amount but locking in funds for a longer period.
In this context, the 675-day FD offers a middle path. It earns more than a one-year deposit without the extended commitment of a two-year deposit. For investors who prefer flexibility over longer lock-in periods but still want decent returns, a 675-day FD can be a smart choice.
Benefits of Choosing a 675-Day FD
One of the key benefits of the 675-day FD is higher interest compared to shorter durations. Investors earn more on their savings without committing for a very long term. This tenure also gives flexibility in financial planning. If you have medium-term goals such as funding education, planning a vacation, or building an emergency corpus, a 675-day FD can align well with your timelines.
Another advantage is the fixed return. Unlike market-linked investments such as stocks or mutual funds, fixed deposits provide assured returns that are not subject to market volatility. This makes FDs particularly attractive for conservative investors or those nearing retirement.
Interest is credited either at maturity or periodically depending on your preference, giving you flexibility in how you receive your earnings.
Things to Keep in Mind Before Investing
Before investing in any fixed deposit, it is important to consider liquidity needs. Early withdrawal may attract penalties and reduce the effective return on your investment. Therefore, be sure you do not need immediate access to the funds before selecting the tenure.
Interest rates can change over time. While this calculation is based on a representative rate for 2026, actual rates at the time of investment may vary. Always check the latest rate offered by the bank before making a deposit.
Tax implications should also be considered. Interest earned on fixed deposits is taxable, and tax is deducted at source for certain investments unless you provide valid declarations. Be aware of how taxes will affect your net returns.
Conclusion
Investing ₹1 lakh in a 675-day fixed deposit with Bank of Baroda for 2026 can yield approximately ₹1,14,100 at maturity, assuming a 7.25 percent annual interest rate compounded annually. This means an interest earning of around ₹14,100 over 675 days. This return makes the 675-day FD an attractive option for investors seeking stable, predictable earnings without market risk.
By understanding how fixed deposit interest is calculated and comparing various tenures, you can make informed decisions that match your financial goals. Whether you are saving for a specific objective or simply looking to grow your funds safely, a medium-term FD remains a valuable tool in your financial planning.