Bank of Baroda(BOB) Monthly Income Plan

Bank of Baroda (BOB) caters to the financial needs of consumers across India by offering bespoke products to fulfill individual demands. The bank has created the Monthly Income Plan, which is designed to help people supplement their monthly income while also encouraging them to save. The interest earned on the deposit serves as an additional source of income, allowing the individual to be prepared when there is an event of an emergency.

Attributes of the Bank of Baroda Monthly Income Scheme

Mentioned below are the components of the BoB monthly income plan:

1) It is a Fixed Income:

You can earn a fixed income on the amount that was deposited. Your earnings would depend on the deposit amount, and the higher the deposit, the greater would be the income. This way, you could use your idle money to generate a guaranteed income according to the tenure of the deposit.

2) It has the Facility to Avail a Loan:

You could also withdraw up to 95% of the outstanding balance in the FD whenever you want funds. So, you could arrange cash in case of an urgent need.

3) There is the Offer for Auto-Renewal:

The bank could also auto-renew the Monthly Income plan for at least a year.

4) There is a Higher Rate of Interest for Senior Citizens:

The Bank of Baroda monthly income plan interest rate is 0.5% higher for senior citizens. The higher interest rate provides the customer who is over the age of 60 - with a better income and also financial security.

5) Tax Benefits of the Scheme:

When you fill out the 15G or 15H form, the bank will not deduct TDS on the monthly interest payment. If you are eligible for the tax deductions, then you also should not forget to submit form 15G or 15H in time to the Bank of Baroda - then you will get a certificate.

Eligibility Criteria for BoB Monthly Income Plan

• The scheme does not have a limit on the amount of money you can invest.
• This FD is open to both people and non-individuals.
• Deposits must be made in multiples of 100.
• The minimum amount to deposit is Rs. 1,000.

Documents Required

You need the following documents to open the BoB Monthly Income Plan:

• Introduction letter.
• A passport-size photo.
• ID Proof, such as - Aadhaar, Voter ID, PAN, or Passport.
• Address Proof.

Bulk Deposits to the BoB Monthly Income Plan

• You can open bulk deposits under any of the bank's retail time deposit programs.
• Bulk deposits will have a different interest rate than retail time deposits.
• The bank can accept or refuse deposits worth more than Rs.25 crore.
• Any request for early payment can be accepted or rejected by the bank. The penalty clause will be the same as for retail time deposits once accepted.

Premature Withdrawal of the BoB Monthly Income Plan

The terms and conditions of premature withdrawal are:

• You could close the fixed deposit if the same has been held for more than a period of a year.
• The bank will not apply any penalties if the FD amount is less than Rs. 5 lakhs and has been retained for a year.
• If the deposit that is held is more than Rs. 5 lakhs and less than Rs. 1 crore for tenure less than 12 months, then the bank would apply 1% penal interest on the maturity amount.
• For premature closure of FD amounting to Rs. 1 crore and higher, you will have to serve a notice of 31 days to the bank.
• A penal interest of 1.50% would apply to the rate of interest of the FD for the tenure it is held with the bank.

Advantages of the BoB Monthly Income Plan

Mentioned below are the advantages of investing in the BoB Monthly Income Plan:

• The minimum and maximum period of the deposit are 12 months and 120 months, and in some cases, the bank would also consider a lower fixed tenure than 12 months.

• The plan will accrue to the deposit holder's bank account each month, and they will receive assured monthly income.

• You could also add a nominee to the FD, and you could use the facility.
• You can even start investing with Rs. 1,000, and there is no set upper limit for the investment. It gives you the opportunity to maximize your money.