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Bank of Baroda RD Interest Rates

The BOB recurring deposit is one of the most sought-after schemes offered by the bank in which customers can save a part of their monthly income and reap the benefits after a certain tenure. Founded by the Maharaja of Baroda, Maharaja Sayajirao Gaekwad III on 20 July 1908 and nationalized on 19 July 1969, Bank of Baroda has now become the third-largest public sector bank in India. The attractive BOB RD interest rates along with other surplus benefits make the choice of investing in BOB RD worthwhile.

BOB RD Interest Rates for Different Investment Periods*

TenureRegular RD interest ratesSenior Citizen RD rates
180 Days5.50%6.00%
181 days to 270 days6.00%6.50%
271 days to 364 days6.00%6.50%
1 year6.45%6.95%
1 year to 400 days6.60%7.10%
401 days to 2 years6.55%7.05%
2 to 3 years6.45%6.95%
3 to 5 years6.25%6.75%
5 to 10 years6.25%6.75%

*Note: The interest rates mentioned here are for deposits less than Rs. 2 crores.

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Interesting takeaways from Bank of Baroda Recurring Deposit Rates

  • Bank of Baroda offers great RD interest rates up to 7.00%
  • Bank of Baroda interest rate on RD is compounded quarterly.
  • Bank of Baroda accepts minimum deposits starting from as low as Rs. 50.
  • RD interest rates up to 6.90% are offered for senior citizens

Bank of Baroda Recurring Deposit Scheme Eligibility criteria

  • To open an RD account, one must be a citizen of India or a HUF (Hindu Undivided Families)
  • An NRI can also opt for BOB RD account through NRO (Non-Resident Ordinary Account) and NRE (Non-Resident External Account) accounts
  • A minor can also get an RD account opened in the bank of Baroda given that his/her parents will supervise the finances under their guardianship

Premature Withdrawal Rules of Bank of Baroda RD 

There will be a 1% deduction on the applicable interest rate according to the RD scheme chosen in case the depositor decides to withdraw the deposited amount before the fixed tenure. Partial withdrawal facility is not available.

Bank of Baroda RD Tax Benefits

Bank of Baroda and all other recurring deposits are taxable under the Income Tax Act 1961. The money you invest in RD is included in your annual income and a TDS (Tax Deducted at Source) of 10% is applicable on the earned interest, given that it should be more than Rs.40,000 per year (was Rs.10000 prior to FY 2019-20). To save TDS on your RD profit, you can fill either Form 15G or Form 15H.

Terms and Conditions for submitting Form 15G

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  • One must be an individual or HUF
  • Only Resident Indians can apply
  • Age should be less than 60 years
  • Tax calculated on your total income must be zero
  • The total income from interests or the year should be less than minimum exempt income for that year, which is Rs 2.5 lakh for FY 2019-20 (AY 2020-21)

Documents Needed to Open Bank of Baroda RD Account

Identity proof

  • Passport
  • PAN card
  • Voter ID card
  • Driving License
  • Government ID card
  • Photo ration card
  • Senior citizen ID card

Address Proof

  • Passport
  • Telephone bill
  • Electricity bill
  • Bank statement with cheque
  • Certificate /ID card issued by the post office.

Types of Bank of Baroda RD Interest Rates

Short-Term Bank of Baroda RD rates: Recurring deposit accounts opened for a short period of time can fetch an interest between 5.50% to 6.25%. The time span of short term RDs ranges between 180 days to less than a year.

Medium-Term Bank of Baroda RD Interest rates: A medium-term BOB RD account can offer a rate of interest in the range of 6.45%-6.60% p.a. The tenure ranges from 1 year to 5 years.

Long-Term Bank of Baroda Interest Rates: A long-term account helps to fetch interest of 6.45% p.a. Any tenure exceeding 5 years is counted as a long-term tenure.  

Recurring Deposit Schemes offered by Bank of Baroda 

Bank of Baroda offers various Recurring Deposit schemes in which one can make an investment, viz. 

Yatha Shakti Jama Yojna (Flexible recurring deposit scheme)

Under this scheme, the bank Pays interest on a half-yearly basis. The account can be opened with an amount as low as Rs. 100 (minimum deposit) while the maximum deposit can be three times of the core installment (maximum Rs. 10,000 per month). The tenure ranges from 12 months to 120 months (10 years). 95% of the outstanding amount in the RD account can be availed as a loan or overdraft facility. A 1% penalty from the applicable rate shall be levied in case of premature withdrawal.

Baroda Holiday Saving recurring Deposits 

The minimum monthly contribution is Rs.100 under this scheme and the minimum/maximum tenure is 12 months. Interest accumulated in the account is paid on a quarterly compounding interval. 1% of the applicable rate is charged as penalty in case of premature withdrawal. 

Regular Income cum recurring Deposit 

The minimum deposit under this RD scheme is Rs. 1000 and tenure range between 12 months to 120 months. Interest earned on the deposit is paid on a half-yearly basis and compounded quarterly. Under this scheme, no penalty is charged for premature withdrawal of deposits up to Rs. 5 lakhs given that the amount was with the bank for 12 months.

Some Special Features of BOB Recurring Deposit Interest Rates

  • One can apply loan and avail 95% of the RD amount
  • Any family member or spouse of the investor can be nominated to receive the final amount.
  • The deposit tenure ranges from as low as 6 months to 10 years (120 months)
  • TDS deductions will be charged as per the existing income tax rules at the time of opening of the RD account
  • One can make minimum deposits in multiples of Rs 100
  • One can go to any Bank of Baroda branch to avail the facilities
  • Quarterly and half-yearly RD facilities are also available under their schemes

Conclusion 

It is evident from BOB Recurring deposit interest rates that one of the best and risk-free investments is Recurring Deposit in India. Not to mention, additional features like loan facility, quarterly and half-yearly RD facilities, minimum deposits and others contribute to make it the best fit for people who want all the flexibilities entailed in Recurring Deposit Schemes. However, it is advisable to read all the terms and conditions before choosing a scheme.