Bank of Baroda RD Interest Rates:
The Bank of Baroda RD is one of the bank’s most common items, allowing consumers to invest a portion of their monthly income and enjoy the profits after a fixed period of time. The Bank of Baroda was established on July 20, 1908, by the Maharaja of Baroda, Maharaja Sayajirao Gaekwad III, and was nationalized on July 19, 1969. It is now India’s third-largest public sector bank. The competitive Bank of Baroda RD interest rates and other extra benefits make investing in Bank of Baroda RD a smart decision.
A Bank of Baroda RD account can be opened for six months to 10 years. For opening a Revolving Savings account with the bank, the interest rate offered to general citizens ranges from 5.00 per cent to 5.70 per cent per year. For all tenures, people above the age of 60 are given an extra 0.50 per cent interest rate.
Features of Bank of Baroda RD:
- One may apply for a loan and get 95% of the RD number.
- Any member of the investor’s family or partner may be nominated to collect the final amount.
- The duration of the deposit varies from 1/2 a year (6 months) to 10 years (120 months)
- TDS deductions will be paid in compliance with current income tax laws when the RD account is opened.
- Deposits made should be in the denomination of Rs. 100 or Rs. 500.
- To use the services, one may go to any Bank of Baroda branch.
- Under their plans, they also have quarterly and half-yearly RD services.
Bank of Baroda RD Interest Rates:
|Tenure||Regular RD interest rates||Senior Citizen RD rates|
|181 days – 270 days||4.30%||4.80%|
|271 days – 364 days||4.40%||4.90%|
|One year one day – 400 days||5.00%||5.50%|
|401 days – 2 years||5.00%||5.50%|
|Two years one day – 3 years||5.10%||5.60%|
|Three years one day – 5 years||5.25%||5.75%|
|Five years one day – 10 years||5.25%||5.75%|
Types of Bank of Baroda RD schemes:
On the basis of schemes offered under Bank of Baroda RD, there are three types of schemes:
Yatha Shakti Jama Yojna (Flexible recurring deposit scheme):
The bank, as part of this system, Interest is charged after six months. The account can be opened with as little as Rs. 100 (minimum deposit) and up to three times the core instalment (maximum deposit) (maximum Rs. 10,000 per month). The length varies from 12 to 120 months (10 years). A credit or overdraft facility is available for 95% of the remaining balance of the RD account. In the event of an early withdrawal, a 1% penalty may be added to the appropriate amount.
Baroda Holiday Saving recurring Deposits:
This scheme has a minimum monthly contribution of Rs.100 and a minimum/maximum term of 12 months. Interest accrued in the portfolio is compounded quarterly and paid back. In the event of early termination, a liability of 1% of the applicable rate would be paid.
Regular Income cum recurring Deposit:
This RD scheme requires a minimum deposit of Rs. 1000 and has a period of 12 to 120 months. Interest on the deposit is charged every six months and compounded quarterly. Premature withdrawal of deposits up to Rs. 5 lakhs is not penalized under this system if the money has been with the bank for at least 12 months.
On the basis of the term period offered under Bank of Baroda RD, there are three types of schemes:
Short-term Bank of Baroda RD rates:
Interest rates on recurring deposit accounts opened for a short period of time range from 5.50 to 6.25 per cent. Short-term RDs will last anywhere from 180 days to less than a year.
Bank of Baroda RD Medium-Term Interest rates:
A medium-term BOB R portfolio will pay 6.45 per cent to 6.60 per cent per annum in interest. The length of service varies from one to five years.
Long-Term Bank of Baroda Interest Rates:
A long-term deposit will earn you 6.45 per cent p.a. in interest. A long-term tenure is described as one that lasts more than five years.
Documentation required for Bank of Baroda RD:
Before documentation, eligibility criteria must be met for Bank of Baroda RD accounts:
- Individuals as well as non-individuals.
- An individual may open an account under his or her name or jointly with another person.
- A minor is someone who is ten years old or older.
- In the name of a minor, with the consent of the minor’s parent or mother.
- Clubs, associations, educational institutions, and joint-stock companies are also examples of joint-stock companies.
Once approved, then requisite documents for Bank of Baroda RD account:
Evidence of your identity:
- PAN (Personal Identification Number) card
- Voter identity card
- a driver’s license
- ID card issued by the government
- Ration card with photo
- Senior citizen identification card
Proof of Address:
- Obtaining a visa
- Charges on the phone
- The cost of electricity
- Statement of account with a check
- The post office issues a certificate/ID card.
Bank of Baroda RD Rates-Premature Withdrawal:
On the bank of Baroda, RD offers the option of early withdrawal. If the depositor chooses to withdraw the deposited balance before the set tenure, the available interest rate according to the RD scheme chosen would be reduced by 1%. There is no option for partial removal.
Calculation of Bank of Baroda RD Interest Rates:
The RD interest rate is calculated using the formula A = P(1+r/n) nt,
‘A’ represents the final value, ‘P’ represents the principal amount, ‘r’ represents the annual interest rate, ‘n’ represents the number of times interest has been compounded, and ‘t’ represents the tenure.
The method of calculation of fixed deposits can be found here.
Process of opening Bank of Baroda RD accounts:
The method of opening a recurring deposit account with Bank of Baroda is easy. BOB offers both online and offline options for opening an RD account.
Online approach – This option is only available to anyone who already has a BOB internet banking account. To open an RD account, simply log into your net banking account and choose the option to open a new recurring deposit account. After that, you’ll need to decide on an instalment number and a tenure. In addition, one must choose whether to connect a current or savings account to the RD account.
Offline process – You must fill out an application form to qualify for the Bank of Baroda Recurring Deposit scheme. Forms are available at the local BOB branch, or you can use it online. To open an RD account at the bank, you must meet the eligibility requirements and submit the requested documentation with the application form.
Although all other RD accounts can be opened using a single application form, you will need to fill out the Yatha Shakti Jama Yojana application form to open your customizable RD account with BOB.
Nomination facility for Bank of Baroda RD:
Bank of Baroda provides the possibility of nominating recurring deposits. Even if accounts are opened as a single user or joint user, only one candidate is permitted per account. You must be clear that the appointment is made in compliance with RBI guidelines. You will change the applicant by completing and submitting the appropriate form.
Tax Benefit on Bank of Baroda RD:
The Income Tax Act 1961 makes Bank of Baroda and all other recurring deposits taxable. The amount you bring into an RD is counted as part of your taxable revenue, and a TDS (Tax Withheld at Source) of 10% is deducted from the received interest if it reaches Rs.40,000 per year (was Rs.10000 before FY 2019-20). Fill out Form 15G or Form 15H to avoid paying TDS on your RD earnings. The following are the terms and conditions for sending Form 15G:
- It is enough to be a person or a HUF.
- Only Native Americans who live in the United States are eligible to apply.
- A person’s age does not exceed 60 years.
- You would pay no tax on your net income.
Bank of Baroda News – Mar 2021:
2020-10-30: Bank of Baroda Q2 profit surges 128%
For the quarter ended September 30, Bank of Baroda posted a net profit of Rs 1,679 crores. Net interest income increased by 6.8% to 7,508 crores during the year. In the September quarter, the consolidated net profit was 1,771 crores. In addition, advances backed by retail loans have grown by 5.3 per cent. The CASA ratio rose by 190 basis points year over year to 39.78 per cent.
2019-03-19: Bank of Baroda offers a holiday recurring deposit option in association with Thomas Cook
Bank of Baroda (BoB) is giving its customers the option of setting up a recurring holiday deposit to make travel more convenient. To meet travellers’ needs, the bank has partnered with Thomas Cook to offer you the opportunity to save for your trip by opening a recurring deposit (RD) account with one of the partner banks.
FAQs for Bank of Baroda RD Interest rates :
✅ Is premature withdrawal allowed in RD accounts?
The money will only be taken out until it reaches maturity. You can split your RD until it matures if you have an emergency, but your account will be locked after that. Banks may subtract a penalty of 1 or 2 per cent from the interest earned on your RD for the time it was in their possession.
If a depositor requests a premature withdrawal before the lock-in date expires, he will get no interest, and only the principal balance will be refunded. Aside from the interest cancellation, all benefits given are now revoked.
✅ Is partial withdrawal of RD accounts allowed by the Bank of Baroda?
Partial withdrawals from recurring deposits are not permitted by the Bank of Baroda. Some banks, on the other hand, would let you use your RD as leverage for a loan or an overdraft. Post offices, on the other hand, allow premature withdrawals if you have had an RD account with them for at least a year. The balance deducted is called a loan that must be completely repaid. Premature closing is possible, but it comes at a price.
✅ What exactly happens on maturity of RD account?
On maturity of your RD account, you can ask the bank to transfer the principal amount and the accumulated interest component directly into your linked savings account. You can also invest your RD amount in fixed deposits after maturity.
Table of Contents
- 1 Bank of Baroda RD Interest Rates:
- 2 Features of Bank of Baroda RD:
- 3 Bank of Baroda RD Interest Rates:
- 4 Types of Bank of Baroda RD schemes:
- 5 Documentation required for Bank of Baroda RD:
- 6 Bank of Baroda RD Rates-Premature Withdrawal:
- 7 Calculation of Bank of Baroda RD Interest Rates:
- 8 Process of opening Bank of Baroda RD accounts:
- 9 Nomination facility for Bank of Baroda RD:
- 10 Tax Benefit on Bank of Baroda RD:
- 11 Bank of Baroda News – Mar 2021:
- 12 FAQs for Bank of Baroda RD Interest rates :