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**About BOB Fixed Deposit**

Bank of Baroda is a trusted name in India’s banking sector. Apart from offering an array of financial services to its customers, the bank provides fixed deposit plans to those looking for secure investment options.

Fixed deposits are an ideal investment option for individuals with low-risk appetite. Since the performance of FDs is not subjected to market fluctuations, investors can earn guaranteed returns from them. However, while the risk of losing parked funds is minimal in the case of FDs, one still needs to make an informed decision before investing in them. Fortunately, the Bank of Baroda fixed deposit rates calculator allows one to do just that.

Available online, these calculators can help investors gauge profitability before investing in FDs. However, to compute FD gains, one needs to learn more about the calculator’s functionality, benefits and more.

With this financial tool, an investor needs to input just a few parameters to determine their returns from FD investment. These factors include the investment sum, interest rates, maturity term and frequency of compounding interest.

**Benefits of Using BOB FD Calculators**

Fixed deposit investments involve parking a considerable surplus amount for a predetermined tenure. Thus, a BOB FD calculator is an essential tool for most prospective investors since it allows one to evaluate his/her ROI. It is beneficial due to the following factors –

- This tool allows individuals to freely change or alter the parameters for FDs until they reach the desired ROI.

- This calculator offers the most convenient and quick method for determining profitability from FDs.

- These calculators are available online and can be used without paying any charges. This makes them more accessible.

- Lastly, using such calculators minimise the risk of errors while computing interest earnings. These mistakes, common in manual calculations, can be costly for the investor.

With a Bank of Baroda FD interest calculator, a potential investor can set a realistic expectation regarding return on investment. However, to use this tool, one would need to know the interest rates that the Bank of Baroda offers to its clients.

**Understanding BOB FD Rates and Associated Terms**

The following table should help an individual assess the interest rate he/she is eligible to receive, based on maturity terms.

Tenure | Non-senior citizen rates | Senior citizen rates |

7-45 days | 3.5% | 4% |

46-180 days | 4.5% | 5% |

181-364 days | 5% | 5.5% |

1-5 years | 5.7% | 6.2% |

As the table indicates, non-senior citizen investors can receive interest at rates between 3.5% and 5.7% per annum. On the other hand, investors over 60 can acquire rates of up to 6.2% from their FDs at BOB.

Also Read, **Bank of Baroda FD Interest Rates**

**FD Calculation Formula and Procedure**

BOB fixed deposit calculator uses a specific mathematical formula to determine the maturity amount for FD investments. An investor needs to learn this formula to understand how each parameter affects fixed deposit earnings. This formula is,

**A = P(1+r/n)^n x t**

Here,

- ‘A’ is the maturity amount for an FD
- ‘P’ refers to the investment principal
- ‘r’ is the rate of interest in decimal points
- ‘t’ denotes the tenure for investment
- ‘n’ denotes the frequency of interest calculation and payment

**Example of BOB FD Calculation**

To understand the utilisation of the above formula to calculate FD, one can refer to the example below –

Mr. Raj is 42 years old and looking to invest Rs.50,000 in BOB FD. He chooses a tenure of 2 years and picks annual interest computation. From the table given below, it can be determined that Raj will receive a yearly interest of 5.7%. Therefore,

P = Rs.50,000

r = 5.7/100 = 0.057

t = 2

n = 1

A = 50000(1+0.057/1)^1 x 2

A = Rs.55,862

Return on investment is equal to Rs.(55,862 – 50,000). Therefore, interest earnings for Raj on this investment are Rs.5,862.

As one can see, this is a complex procedure to calculate fixed deposit earnings. The easiest method is to use a Bank of Baroda FD calculator, which provides results in a matter of seconds.

**How do Various Factors affect FD Interest Earnings?**

Each parameter in FD calculations influences the outcome or returns from this investment. An investor needs to ascertain how a change in these factors alters the ROI. For instance,

**Principal investment –**The very first parameter that an investor needs to enter in a Bank of Baroda FD rates calculator is the investment quantum. Higher investments lead to increased interest earnings and vice versa. Thus, if the calculator reveals a lower maturity amount than the desired ROI, an investor can try increasing the investment quantum.**Maturity term –**Fixed deposits tend to prefer investors who park their funds for the long-term. Therefore, individuals who can invest for tenures of more than a year are likely to earn more interest. Another way to match the desired ROI is by opting to invest in a significant term.

Additionally, deciding to compound FD interest more frequently can lead to slightly higher returns, overall. An investor needs to keep these factors in mind to maximise earning potential from fixed deposits.

**FAQs**

**Who can open an FD account in Bank of Baroda?**

Resident Indians, NRIs, HUFs and business firms can easily invest in Bank of Baroda fixed deposits.

**What is the added charge for premature withdrawal of FDs?**

The charge may differ from one bank to the next. However, in most cases, this tends to be 0.5% to 1% of the withdrawn amount.

**What are the options for interest computation for FDs?**

In the case of compounding rates, investors can choose between monthly, quarterly, half-yearly and annual frequencies.