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Bank of Baroda FD – Interest Rates, Features, Types of FDs

Bank of Baroda FD interest rates

Introduction

Bank of Baroda fixed deposits offer decent interest rates to its investors. They have a flexible tenure,  loan against FD, minimum deposit, nomination facility, and auto-renewal facility. Bank of Baroda FD interest rates is higher than their savings bank account rates. Therefore, One needs to have a Bank of Baroda savings account to invest in their FD. To invest in Bank of Baroda FD, one can visit their nearest branch. Alternatively, they can also invest online on Bank of Baroda’s website. In this article, we have covered the Bank of Baroda FD interest rates in detail.

About Bank of Baroda

Bank of Baroda (BOB) is a public sector banking and financial services company. Also, it is the second-largest public sector bank in India after the State Bank of India (SBI). The government of India announced the amalgamation of Bank of Baroda, Dena Bank, and Vijaya Bank on September 17, 2018. Hence, this is the first three-way consolidation of banks in the country. Furthermore, Bank of Baroda is a public sector undertaking (PSU) by the government of India. Also, BOB has 13.1 crore customers across 21 countries. 

Bank of Baroda was nationalized in 1969. It provides multiple products to its customers, like saving and fixed deposits, loans, insurance, and many more. However, one of the important products provided by the bank is Fixed Deposits or Term Deposits. Hence, the bank offers fixed deposits with a wide range of tenures and attractive interest rates.  

Features of Bank Of Baroda Fixed Deposit

Following are the key features of Bank of Baroda Fixed Deposits.

Tenure: The tenure ranges from 7 days to 10 years. Therefore, the tenure is available for short term and long term period.  

Minimum Amount: The minimum amount to open an FD with Bank of Baroda is INR 1000.

Bank of Baroda FD Interest Rates: Bank of Baroda FD offers interest rates up to 5.30%. The interest rates are not only assured but higher than savings accounts. 

Interest Rate Payment: The interest rate is compounded quarterly and payable on a half-yearly basis. However, the interest is paid on maturity for Tax Saving Term Deposit and Capital Gains Account Scheme. 

Preferential fixed deposit Interest Rates: Bank of Baroda offers preferential interest rates to senior citizens which is 0.50% higher than the general base rate. 

Loan against FD: Depositors can avail of a loan on FDs up to 90 – 95% of their deposit amount. Also, the depositors can avail of loan facility against their deposit to meet financial requirements, without breaking the FD. 

Premature Withdrawal: Most fixed deposit schemes allow premature withdrawals, however with a penalty.

Nomination Facility: Bank of Baroda also allows depositors to nominate beneficiaries for the deposits

Auto-Renewal: Bank of Baroda provides the auto-renewal facility of the FD account.

Safety: Bank of Baroda provides insurance cover for deposits up to INR 5,00,000 to all its investors. Further, these deposits are covered under the Deposit Insurance and Credit Guarantee Corporation Scheme. In other words, the fixed deposits are safe and secure as the government backs the funds.

Interest on Bank of Baroda Fixed Deposit

TenureGeneral Public FD RateSenior Citizens FD Rate
7 – 14 days2.90%3.40%
15 – 45 days2.90%3.40%
46 – 180 days3.90%4.40%
181 days – up to 1 year4.40%4.90%
1 year – upto 3 years5.10%5.60%
3 years – upto 5 years5.30%5.80%
5 years – 10 years5.30%6.30%

Note: Bank of Baroda revises fixed deposit rates periodically

Comparison of Bank of Baroda FD Interest Rates with Other Financial Institutions

NameInterest rateTenureMin. deposit
Bajaj Finance Ltd.6.79% – 7.35%1 – 5yrs₹25,000
SBI Bank2.90% – 6.20%1 – 10yrs₹1,000
ICICI Bank2.50% – 6.30%1 – 10yrs₹10,000
Axis Bank2.75% – 6.15%1 – 10yrs₹5,000
HDFC Bank2.75% – 6.25%1 – 10yrs₹5,000
This FDBank of Baroda2.90% – 6.30%1 – 10yrs₹1,000
IDFC Bank3.00% – 7.50%1 – 10yrs₹10,000
Kotak Mahindra Bank2.50% – 4.50%1 – 10yrs₹5,000
Canara Bank5.30% – 5.40%1 – 10yrs₹1,000

To calculate the maturity amount of a Bank of Baroda FD investment, one can use a fixed deposit calculator. Also, Scripbox’s fixed deposit calculator is available online.

Documents required to make a deposit

Bank of Baroda allows investors to open their FD through online or offline mode. To open the FD offline, one will have to visit the nearest Bank of Baroda branch and fill the account opening form and submit the necessary documents. However, for online mode, the investors have to visit Bank of Baroda’s website, fill the form online, and submit the required documents.

The following are the documents required to open an FD in the Bank of Baroda.

  • 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)

Note: This is the basic list with indicative documents. Banks may ask for further details as and when necessary.

Also, only eligible investors can invest in Bank of Baroda FD. The following are eligible to invest in Bank of Baroda FD: 

  • Individuals (including minors)
  • Partnership firms
  • Limited companies
  • Trusts
  • Hindu Undivided Families (HUFs)
  • Joint account holders
  • Panchayats and municipalities

Withdrawal of Fixed Deposit

Bank of Baroda provides a premature withdrawal facility to its depositors in times of need. However, there is a certain penalty to it. The penalty varies from time to time and also is different for different schemes and the amount invested. The following are the various conditions where a penalty is charged for premature withdrawal. 

Up to INR 5 lacs

No penalty is levied on deposits up to INR 5 lacs. Also, the deposit should remain with the bank for a minimum period of 12 months. 

INR 5 lacs to INR 1 crore

For deposits more than INR 5 lacs and less than INR 1 crore, the interest is paid after deducting a penalty of 1% from the applicable interest rate.

< INR 1 crore

For deposits greater than 1 crore, the following conditions apply.

  • A notice from the customer 31 days prior to the withdrawal.
  • A penalty of 1.50% on the applicable interest rate for the period for which the bank has held the deposit

Loan against Fixed Deposit

Bank of Baroda offers loans against fixed deposits. The Bank offers loans up to 90- 95% of the FD amount. Also, the Bank of Baroda does not provide loans against FD of any other bank. Furthermore, the rate at which the Bank of Baroda offers loans is between 1.50% to 1.75% over the deposit rate. However, for senior citizens, the bank offers loans at 1.25% over the deposit rate. Furthermore, no processing fees apply to loans and advances against bank deposits. 

Loans such as loans against property (home loan), education loan, business loan, etc., can be taken against an FD. The interest rate of a loan varies depending on the Bank and type of loan. Therefore, one can calculate their loan EMI using Scripbox’s loan EMI calculator, which is available online. 

The loan EMI calculator works as a personal loan EMI calculator, home loan EMI calculator, and car loan EMI calculator. The investor can also use this EMI calculator in various scenarios by changing the personal loan interest rate, home loan interest rate, and car loan interest rate.

Types of Bank Of Baroda Fixed Deposit Scheme

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

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

BOB 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

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

Monthly Income Plan

Purpose: It is a tailor-made fixed deposit plan. This scheme promises regular income on either 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

Who can invest in a Bank of Baroda FD?

The following can invest in Bank of Baroda FD.

  • Individuals (including minors)
  • Partnership firms
  • Limited companies
  • Trusts
  • Hindu Undivided Families (HUFs)
  • Joint account holders
  • Panchayats and municipalities

What are the tax implications of fixed deposits?

The FD that qualifies for tax saving is the 5-year tax-saving FDs. Also, investment in these FD’s helps in saving up to INR 1.5 lakhs under Section 80C of the Income Tax Act. However, all other FDs do not qualify for tax saving. Also, the interest income is taxable as per the income tax slab of the individual.

Consequently, all the FDs are subject to TDS of 10%. However, from AY 2020-2021, the TDS limit has been increased from INR 10,000 to INR 40,000. Hence, TDS is charged only if the interest earned is above INR 40,000 and (INR 50,000 for senior citizens).  To know the interest earned is above or below the TDS threshold limit, one can use a Bank of Baroda FD calculator that is available online.

One can use the Income Tax Calculator to calculate their tax liability. Hence, Scripbox’s Income Tax Calculator is available online and free to use.

Frequently Asked Questions

What are the minimum and maximum tenure for a Bank of Baroda FD (BOB FD)?

The minimum tenure for investment is seven days. The maximum tenure for investment is ten years.

What are the minimum and maximum deposit amounts for a Bank of Baroda FD (BOB FD)?

The minimum amount for Bank of Baroda FD is INR 1000. There is no maximum limit on the deposit amount for Bank of Baroda FD.

Are there any special benefits for senior citizens?

Yes, the Bank of Baroda provides special benefits for citizens above the age of 60 years. Firstly, it provides an additional interest rate of 0.50% on fixed deposits compared to other depositors. Hence, there are no restrictions on the minimum amount of investment. Also, the interest rate on loan against deposits is charged at 1.25% over the deposit rate. Furthermore, there is a “No Queue” facility available at all branches for them.

Does Bank of Baroda offer Recurring Deposits?

Bank of Baroda offers recurring deposits. Also, the recurring deposits of Bank of Baroda have a minimum tenure of 6 months and a maximum tenure of 10 years. Further, to invest in Bank of Baroda RD, investors can use the online or offline mode.

Published on November 9, 2020