Bank of Baroda, the second largest public sector bank in India, is to close up shop in UK retail banking after 66 years of operating in the market.
The bank, which is regulated by the Financial Conduct Authority and is protected by the Financial Services Compensation Scheme, provides savings accounts and current accounts to the UK market, but has said it was now exiting the UK following a business strategy review. It will wind down Bank of Baroda UK's retail operations and close all savings and current accounts.
In a statement, the bank said the decision “reflects the group’s overall strategy to focus on those areas where it can make the greatest contribution” but said it is remains "committed to its long-standing presence in the UK through its wholesale banking branch".
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The bank will complete what is known as ‘solvent wind down,’ meaning it will handle the closures of all its accounts itself.
With savings accounts being one of its more popular offerings, here’s everything you need to know if you hold money with Bank of Baroda UK.
When is Bank of Baroda closing in the UK? The dates to note
For savings and current account holders
You have until 12 January 2024 to take your money out and transfer it to another bank. You must transfer your money out by then or you may find it difficult to access your cash after this date. Existing UK customers should have received a notice of termination - if you have an account but have not yet had this notice, email the bank as soon as possible on customercare.uksub@bankofbaroda.com.
For dormant accounts
If you have a dormant or inactive account, Bank of Baroda will be closing these accounts on 12 September. If you have money in an account not used for a while, you should look to get in touch with the bank as soon as possible.
Fixed term accounts
If you have a fixed term account, you can choose to leave your money with the bank until the account matures - so, you don't have to close the account. But you should let the bank know at least 14 days in advance where you would like to transfer the money once that account reaches maturity.
How do I close my account?
You can close your account with Bank of Baroda by filling out a account closure form. It requires your personal and bank details, plus your customer ID.
The form can be submitted to the bank via email, post or in one of its 10 UK branches based in London, Manchester, Birmingham and Leicester.
If you are submitting the form in a branch, you will need to take ID with you, for example your passport or UK driving licence.
The bank is offering a ‘goodwill’ payment of £25 for anyone who closes their account before 12 January 2024.
How can I get in touch with Bank of Baroda?
If you have any issues or concerns, you can contact the bank directly on 0333 155 3333 or email them on customercare.uksub@bankofbaroda.com.
What can I do if I am having problems accessing my cash at Bank of Baroda UK?
If you have not used your account for a while or your personal details have changed (such as your address) you may find it takes longer to get your cash, so it is important you act fast to avoid any delays. The bank does not operate online and some processes may take longer.
If you miss the deadlines or are unable to get your money, you can contact the Financial Ombudsman to complain.
Where to transfer your savings
Bank of Baroda’s savings accounts often hit best buy tables in the past which is why it has been popular with UK savers - but while this was the case some 10 years ago, it does not offer competitive rates anymore .
The base rate has gone up for the 14th consecutive time to 5.25% and the latest rate advertised for Bank of Baroda was 0.25%, so taking your savings out as soon as possible makes sense.
MoneyWeek has been tracking the savings market and here is a round up of other savings accounts and what interest you can earn.
Easy access savings
Theses are the top easy-access savings accounts on the market right now:
- Beehive Money Bonus Saver - 4.9% AER. Open with £1,000.
- Chip Instant Access Account - 4.84% AER. Open with £1.
- Shawbrook Easy Access Account - 4.83% AER. Open with £1,000.
One year fixed savings
This is what’s on offer right now for the best one-year fixed savings accounts.
- SmartSave 1 Year Fixed Rate Saver - 6.01% AER. Open with £10,000.
- United Trust Bank 1 Year Fixed Bond - 6% AER. Open with £5,000.
- Charter Savings Bank 1 Year Fixed Bond - 6% AER. Open with £5,000.
You can also keep up-to-date with the latest rates on savings by signing up for our newsletter.
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