Bank of Baroda Fixed Deposit

Bank of Baroda offers multiple fixed deposits for various tenures with different interest rates to its investors. The interest rate on BoB FDs is higher in their savings account. One can invest in BoB FDs through both online and offline modes with just a minimum investment of INR 1,000. This article covers BoB FD, its features and interest rates in detail.

Bank of Baroda Fixed deposit schemes

Following are the types of Bank of Baroda fixed deposit schemes:

• Double Dhamaka Deposit Scheme
• Tax Savings Term Deposit
• Fast Access Deposit
• Suvidha Fixed Deposit Scheme
• Regular Income Plan
• Monthly Income Plan
• Quarterly Income Plan
• Baroda Advantage Fixed Deposits (Non- Callable)

Bank of Baroda Double Dhamaka Deposit Scheme

• Purpose: This scheme provides double returns on the investment made in the fixed deposit account. 
• Minimum Amount: INR 5,000
• Interest Payment: Paid at the time of maturity
• Bank of Baroda fixed deposit rate for Senior citizens: Bank of Baroda offers additional interest rates of 0.50%.
• Loan Facility: Available up to 95% of the deposit amount
• Nomination facility: Available
• Tax Exemption: Tax benefit is applicable on deposit under Section 80C up to INR 150,000 of Income Tax Act,1961.
• Eligibility: General public and senior citizens

Bank of Baroda Tax Savings Term Deposit

• Purpose: As the name implies, this savings scheme aims for tax saving purposes. Therefore, this savings scheme helps resident individuals and HUF to save money on tax and get maximum returns from their fixed deposits. 
• Tenure: 60 months to 120 months
• Minimum Amount: INR 100 and in the multiples of INR 100/-
• Maximum Amount: INR 1,50,000
• Interest Payment: The interest is compounded every quarter. However, tax/TDS is applicable on interest earned.
• Bank of Baroda fixed deposit rate for Senior citizens: Bank of Baroda offers additional interest rates of 0.50%.
• Loan Facility: Not available
• Nomination facility: Available
• Auto-Renewal Facility: Available
• Tax Exemption: Tax benefit is applicable on deposit under Section 80C up to INR 150,000 of Income Tax Act,1961.
• Eligibility: Resident Indians and HUFs

Bank of Baroda Fast Access Deposit

• Purpose: This scheme allows investors to invest in a particular tenure. Also, it provides assured returns on the savings. However, this scheme comes with a range of benefits like security, liquidity, and higher returns on investments. Furthermore, it is mandatory to open a current account to avail the benefits of this scheme.
• Tenure: 7 days to 120 months
• Minimum Amount: INR 10,000
• Interest Payment: The interest is compounded every quarter. However, tax/TDS is applicable on interest earned.
• Bank of Baroda fixed deposit rate for Senior citizens: Bank of Baroda offers additional interest rates of 0.50%.
• Loan Facility: Available up to 95% of the deposit amount
• Nomination facility: Available
• Auto-Renewal Facility: Not Available
• Eligibility: Resident Indians and HUFs

Bank of Baroda Suvidha Fixed Deposit Scheme

• Purpose: Under this scheme, the depositor gets a dual advantage of an attractive interest rate and flexible withdrawal facility. It is a convenient way to utilize the fixed deposits as it offers both short term and long term deposits. In other words, it offers a flexible deposit option with no lock-in period.
• Tenure: 12 months to 60 months 
• Minimum Amount: INR 5,000
• Interest Payment: The interest is paid on a half-yearly basis but is compounded every quarter. However, tax/TDS is applicable on interest earned.
• Bank of Baroda fixed deposit rate for Senior citizens: Bank of Baroda offers additional interest rates of 0.50%.
• Loan Facility: Available up to 95% of the deposit amount
• Nomination facility: Available
• Auto-Renewal Facility: Available
• Eligibility: Resident Indians and HUFs

Bank of Baroda Regular Income Plan

• Purpose: It is a ready-made fixed deposit policy. Hence, it is suitable for those who regularly require money to supplement their income every month. Also, The interest earned on this scheme acts as an alternative source of income. 
• Tenure: 12 months to 120 months
• Minimum Amount: INR 1000 and in the multiples of INR 100/-
• Interest Payment: The interest is paid every quarter. However, tax/TDS is applicable on interest earned.
• Bank of Baroda fixed deposit rate for Senior citizens: Bank of Baroda offers additional interest rates of 0.50%.
• Loan Facility: Available up to 95% of the deposit amount
• Nomination facility: Available
• Auto-Renewal Facility: Available
• Eligibility: Resident Indians and HUFs

Bank of Baroda Monthly Income Plan

• Purpose: It is a tailor-made fixed deposit plan. This scheme promises regular income on either a monthly, quarterly, or half-yearly basis.
• Tenure: 12 months to 120 months
• Minimum Amount: INR 1000 and in the multiples of INR 100/-
• Interest Payment: The interest is paid every month. However, tax/TDS is applicable on interest earned.
• Bank of Baroda fixed deposit rate for Senior citizens: Bank of Baroda offers additional interest rates of 0.50%.
• Loan Facility: Available up to 95% of the deposit amount
• Nomination facility: Available
• Auto-Renewal Facility: Available
• Eligibility: Resident Indians and HUFs

Quarterly Income Plan

The Quarterly Income Plan is designed for investors who require money on a quarterly basis to augment their income. Interest on Deposit is paid periodically under this arrangement. Every quarter, interest collected on a deposit provides a new source of income.

• A minimum investment of Rs 1,000 is required. No limit on maximum investment amount
• Eligibility- Individual, joint account with more than one individual, Clubs, associations, Educational Institutions, Partnerships and joint stock companies
• On-demand overdraft / loan against deposit of up to 95% of the outstanding balance in the account as of the loan date.
• Interest will be charged in accordance with the Bank’s current rules, as provided by the retail banking department from time to time.
• In the case of deposits up to Rs 5 lacs, there will be no penalty for premature payment if the deposit has been with the bank for a minimum of 12 months.

Baroda Advantage Fixed Deposits (Non- Callable)

For deposits of Rs. 15.01 lakhs and above, the depositor receives a differential rate of interest. This ROI is over the usual FD deposit rate in exchange for foregoing the option of early withdrawal. All domestic branches will provide Baroda Advantage Fixed Deposits (non-callable).

• Eligibility- Individuals, Clubs, associations, Educational Institutions, Co-Operative Banks, Grameen Banks, Private banks, Partnerships and joint stock companies and any other institutions
• The product is not available for minor accounts under the age of 14. The maximum amount that may be accepted in a minor account under this age group is Rs.1,000,000.
• A loan/overdraft facility of up to 85% of the outstanding balance will be authorised at the applicable interest rate over the interest rate paid on deposits.

Key Features of Bank of Baroda Fixed Deposit Schemes 

• Tenure: The tenure of a Bank of Baroda FD ranges from seven days to ten years. One cannot change the tenure of their BoB FD once it has commenced.
• Minimum and maximum investment: The minimum investment in BoB FD is INR 1,000. However, there is no limit on the maximum amount of investment in Bank of Baroda FD.
• BoB FD rates: Bank of Baroda FD rates range between 2.8% and 5.25% for regular citizens. Moreover, BoB offers an additional 0.5% interest to senior citizens on their FDs. BoB gives the choice of interest payout frequency to the investors, and they can choose from the following – monthly, quarterly, half-yearly, yearly, or at maturity.
• Premature withdrawal: All BoB FDs can be withdrawn prematurely except for the tax-saving FD. There is no penalty for deposits below INR 5 lakhs if kept for a period of 12 months. For all deposits higher than INR 5 lakhs, there are premature withdrawal penalties.
• Loan against FD: Bank of Baroda offers loan against the FD. Investors can get up to 90%-95% of the deposit amount as a loan against their BoB FD investment. Also, the interest rate for the loan will be 1.5%-1.7% higher than the FD rate. However, for senior citizens, the interest rate on loan is 1.25% above the FD rate.
• Nomination facility: Bank of Baroda FD investors can nominate beneficiaries for their FDs.
• Auto-renewal: Investors can opt for auto-renewal of their Bank of Baroda FDs.
• Safety: The Deposit Insurance Scheme of RBI covers all Bank of Baroda deposits. The scheme covers all Bank of Baroda deposits up to INR 5,00,000.
• Additional payments: Investors cannot deposit an additional amount in a Bank of Baroda FD once it has commenced. However, they can open a fresh Bank of Baroda FD with the new amount.

How to open a Bank of Baroda FD deposit account?

One can open a Bank of Baroda FD account through various modes such as Internet Banking, Mobile App and offline.

Internet Banking

The following steps will help an individual to open a Bank of Baroda FD account through internet banking:

• Log in to the Bank of Baroda NetBanking account.
• Select the ‘Open Fixed Deposit’ option.
• Enter all the necessary information, nominee details and provide maturity instructions.
• Upon successfully submitting all the details, the FD account will be booked.

Through Mobile App

Bank of Baroda Bank App

• The following steps will guide in opening an FD account through the Bank of Baroda Mobile App:
• Download the Bank of Baroda Bank App and log in.
• Select the ‘Open Fixed Deposit’ option.
• Enter all the necessary information, nominee details and provide maturity instructions.
• Upon successfully submitting all the details, the FD account will be booked.

Offline Bank of Baroda FD Opening

To open a Bank of Baroda FD account offline, one has to visit the nearest Bank of Baroda branch. Fill the Bank of Baroda FD application form and submit all the necessary documents along with the deposit amount. On successful verification of the application, the Bank of Baroda will open the account and provide an FD receipt.

Documents required to Open a Bank of Baroda FD 

• While opening a Bank of Baroda fixed deposit account, the following are the list of documents required:
• FD account opening form
• Passport size photographs
• Identity Proof as per KYC norms (PAN Card, Aadhar Card, Voter ID Card, Driving License or Passport)
• Residence Proof as per KYC norms. (Aadhar Card, Utility bills, Voter ID Card, Passport, Driving License)
• Pan Card
• Bank Saving Account details (account number, IFSC code, and branch name)

Eligibility to Open a Bank of Baroda FD 

• The eligibility for opening a Bank of Baroda FD account varies based on the type of account.
• Individuals (including minors)
• Partnership firms
• Limited companies
• Trusts
• Hindu Undivided Families (HUFs)
• Joint account holders
• Panchayats and municipalities

Does BoB offer Recurring Deposits?

Bank of Baroda offers recurring deposits to its depositors. BoB recurring deposits have a minimum tenure of six months and a maximum tenure of 10 years. Depositors can open an RD account either by going to the BoB branch or online using internet banking. The interest rate for regular citizens on BoB RDs is in the range of 3.7% to 5.1%, and for senior citizens, it is in the range of 4.2% to 5.6%.

Is FD interest taxable?

Only investment in Bank of Baroda Tax Saving FD qualifies for tax saving up to INR 1,50,000 per annum. Investment in no other BoB FDs qualifies for tax saving under Section 80C of the Income Tax Act. The interest income from BoB FD is taxable as per the investor’s income tax slab rates. Moreover, the interest income is subject to a TDS of 10% if the income from Bank of Baroda FD exceeds INR 40,000 per annum. For senior citizens, the limit is INR 50,000 per annum. Also, if the investor doesn’t disclose PAN Card details to the Bank of Baroda, then the TDS rate will be 20%.

Is Bank of Baroda safe for FD?

Bank of Baroda guarantees returns in the form of interest on their FDs. Moreover, the Deposit Insurance Scheme of RBI covers all Bank of Baroda deposits. Also, the scheme covers all Bank of Baroda deposits up to INR 5,00,000. Hence Bank of Baroda FDs are safe for investment.

How many years will FD double in Bank of Baroda?

To know in how many years Bank of Baroda FD will double, we can follow the 72 rule. We have to divide 72 by the interest rate, and the result will be the number of years BoB FD will double. For example, for a tenure of 5 to 10 years, the FD interest rate for senior citizens is 5.25%. An investor can double the investment amount by investing for this tenure in BoB FD in 13.71 years (72/5.25).

Frequently Asked Questions