Bank of Baroda RD – Eligibility, Features & Application Process for RD Account
Founded back in 1908 in the modern city of Vadodara, Gujarat, Bank of Baroda today serves over 127 million customers globally. It is the 2nd largest public sector bank in India, with a market capitalisation of around $225 billion.
The financial institution offer lending and investment options spread across different portfolios, with Bank of Baroda Recurring Deposit being one of them.
The financial products are available in various account types, designed for the promotion of small, risk-free investments among individuals. One can thus opt for a Bank of Baroda RD scheme as per his/her suitability.
Bank of Baroda Recurring Deposit – Key Features
Here are the notable features you will come across when investing in a Recurring Deposit with Bank of Baroda (BOB).
- Minimum and maximum deposit amount
The minimum amount you can start with Recurring Deposit investment at BOB is Rs. 50 for locations falling in the rural and semi-urban region of India. For urban regions, the minimum investment starts from Rs. 1,000.
However, there is no maximum limit to the investment amount. You can thus choose the fixed monthly deposit for RD above the minimum limit as per your convenience.
Note that you must deposit the amounts equally every month up to the maturity period.
- Recurring Deposit tenure
The minimum tenure for investing in a Bank of Baroda RD is 6 months. The maximum tenure you can opt for is 120 months or 10 years. Accompanied by attractive interest rates for variable terms, it thus provides scope for planning both short and long term financial goals.
- Interest rate offered
You can earn attractive interests on your BOB Recurring Deposit with the minimum interest rates starting from 5.75% p.a. and going to a maximum of 7.35% p.a.
Based on the tenure chosen, interest rates for senior citizens stand at 0.50% above the interest rates offered on general RD schemes.
- Interest calculation and payout
Interest on Bank of Baroda Recurring Deposit is compounded every quarter. The interest payouts, however, occur after the scheme attains maturity.
Eligibility criteria for investing in RD at Bank of Baroda
Both individuals as well as organisations and institutions, can open an RD account at Bank of Baroda. He/she should belong to one of the following categories for RD account opening at this place.
- Minor’s guardian (Minor must be minimum 10 years of age or more.)
- HUF (Hindu Undivided Family.)
- Registered association.
- Registered Joint Stock Company.
- Registered partnership.
- A registered club, etc.
Documents required to open an RD account at BOB
When submitting the application form for Bank of Baroda RD account opening, you must submit a few essential documents for approval.
- Proof of identity such as Voter ID card, Aadhaar card, government-issued ID card or any other valid ID proof.
- Proof of address like Aadhaar card, Voter ID card, ration card, electricity bill, etc.
- PAN card of the depositor. In case he/she does not have a PAN card issued, then form 60/61 must be filled.
- Primary depositor or depositor’s 2 passport-sized photographs.
- Any additional documents required by the bank in case of RD account opening for company, partnership, HUF, etc.
Recurring Deposit interest rates 2019 at Bank of Baroda
Interest rates on Bank of Baroda Recurring Deposit are applicable as per the tenures one opts for. Check out the various rates offered by the bank.
|Tenure of RD||Applicable Interest Rates for General RD Account (In %)||Applicable Interest Rates for Senior Citizens(In %)|
|For 180 days||5.75||6.25|
|Between 180 and 270 days||6.50||7.00|
|Between 270 and 365 days||6.50||7.00|
|For 1 year||6.70||7.20|
|From 1 year to 400 days||6.85||7.35|
|From 401 days to 2 years||6.80||7.30|
|From 2 to 3 years||6.70||7.20|
|From 3 to 5 years||6.70||7.20|
|Between 5 and 10 years||6.70||7.20|
With these competitive interest rates providing returns higher than your savings account, they bring an attractive prospect for corpus creation and growth.
Other types of Recurring Deposits at BOB with key features
Other than the general Bank of Baroda RD, the financial institution also comes with other RD types that you can invest in to generate wealth over time. Below are given the additional RD types along with their key features.
- Quarterly Recurring Deposit
Also known as the Baroda Samriddhi quarterly Recurring Deposit, it allows for deposit every quarter instead of every month. Its features include the following –
- The decided amount is deposited after every three months (quarterly)
- It comes with an option for loan/overdraft up to 95% of the deposit value. An individual has to opt for this facility at the time of application.
- The minimum deposit amount starts at Rs. 500 with no maximum limit to deposit.
- The minimum tenure you can opt for to invest in this Bank of Baroda RD account it is 36 months (3 years). The maximum term you can opt for is 120 months or 10 years.
- Interest for this RD is compounded annually, and interest payout is made at the time of maturity.
- Half-yearly Recurring Deposit
The Baroda Samriddhi half-yearly recurring deposit comes with the following features.
- Deposit to this account is made after every 6 months (half-yearly).
- Loan/overdraft facility for up to 95% of the deposit is available with this scheme.
- With no maximum limit to the deposit amount, the minimum investment you can make in this scheme is Rs. 1,000.
- The minimum and maximum tenure for this RD is 36 and 120 months respectively.
- Interest in this Recurring Deposit scheme is compounded quarterly, and interest payout is made after the scheme maturity.
- Flexible Recurring Deposit scheme
Also called Yatha Shakti Jama Yojana, the Bank of Baroda flexible Recurring Deposit scheme comes with some unique features for investors.
- It comes with a deposit interval of one month.
- You can avail a loan/overdraft of up to 95% of the outstanding RD balance under this scheme.
- The minimum deposit you can make is Rs. 100 while the maximum deposit every month is capped at Rs. 10,000.
- You can opt for the scheme with a minimum tenure of 12 months which can go up to a maximum of 120 months.
- Interest under this scheme is compounded daily on the balance amount and payout is made two times in a year, i.e., in March and September.
Application process for opening an RD account at BOB
To apply for the Bank of Baroda Recurring Deposit scheme, you have to fill up the application form. You can obtain this form either from your nearest BOB branch or access it online.
Meet the eligibilities and provide necessary documents along with the application form for RD account opening at the bank.
While account opening for all other RDs can be done through a unified application form, to open your flexible RD account with BOB, you will be required to fill the Yatha Shakti Jama Yojana application form.
Premature withdrawal penalty on RD
Bank of Baroda allows for premature withdrawal of the RD amount and account closure after the deduction of applicable penalties.
The penalty is deducted at the rate of 1% with the interest rate applicability considered as the lower of running rates before premature withdrawal and contracted interest rate for the concerned RD account.
Loan against Recurring Deposit at Bank of Baroda
You can avail a loan or overdraft on your Bank of Baroda Recurring Deposit against the RD account balance as collateral. The maximum loan availability is capped at 95% of the deposit amount. Interest is charged on this loan amount based on the internal guidelines of the bank regarding interest rates.
Taxability of Recurring Deposit at BOB
Interest income earned from a Recurring Deposit account at Bank of Baroda is taxable. If the income exceeds Rs. 10,000 for a financial year, TDS is deducted at the rate of 10%. From AY 2020-2021 onwards, however, TDS will be deducted if the interest income exceeds Rs. 40,000 for a financial year. If your annual income does not exceed the minimum exemption limit as per the Income Tax Act, 1961, you can submit form 15G/15H to claim TDS returns.
Choose a suitable scheme from the available Bank of Baroda Recurring Deposit schemes and turn your monthly/quarterly/half-yearly savings into a corpus growing at attractive rates.
Decide on the tenure and minimum deposit amount as per your suitability while filling up the application form.