BOB FD Plan : With inflation rising and market-linked investments carrying volatility, many individuals, especially senior citizens and conservative investors, are turning to Fixed Deposit (FD) schemes for stable returns. Bank of Baroda (BOB), one of India’s leading public sector banks, has rolled out an attractive FD plan that allows investors to earn up to ₹75,050 on a ₹3 lakh investment. In this article, we’ll break down the plan details, eligibility, interest calculation, and everything else you need to know to make an informed investment.
BOB Fixed Deposit : An Overview
Bank of Baroda offers multiple fixed deposit options that cater to various customer segments, including regular individuals, senior citizens, and super senior citizens. The FD plan providing ₹75,050 returns on a ₹3 lakh deposit is linked to a 5-year tenure with compounded annual interest.
Key Highlights:
- Investment Amount: ₹3,00,000
- Tenure: 5 Years
- Interest Rate: Up to 7.50% (depending on age and scheme)
- Total Return: ₹3,75,050
- Interest Earned: ₹75,050
- Type: Cumulative Fixed Deposit
- Compounding: Quarterly/Annual (depending on plan)
Interest Rates Offered by Bank of Baroda
Bank of Baroda offers different rates based on customer type and tenure. Here’s a snapshot of the current FD interest rates:
| Customer Type | Tenure | Interest Rate | Compounding | Effective Yield |
|---|---|---|---|---|
| Regular Citizens | 5 Years | 6.50% | Quarterly | ~37.5% |
| Senior Citizens | 5 Years | 7.15% | Quarterly | ~40.3% |
| Super Senior Citizens | 5 Years | 7.50% | Quarterly | ~41.7% |
| Tax Saving FD | 5 Years (Locked) | 6.50% | Annual | ~37.5% |
| Monthly Interest Plan | 5 Years | 6.00% | Monthly | N/A |
| Non-Cumulative FD | 5 Years | 6.25% | Quarterly | N/A |
| NRO FD | 5 Years | 6.50% | Quarterly | ~37.5% |
Note: Interest rates are subject to change and may vary based on RBI directives or bank discretion.
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Eligibility Criteria for BOB FD
To open a Bank of Baroda FD, the following eligibility criteria apply:
- Indian residents above the age of 18
- NRIs (under NRO/FCNR/NRE FDs)
- Senior citizens (aged 60 and above)
- Super senior citizens (aged 80 and above)
- Minors (under guardianship)
Documents Required:
- Aadhaar Card
- PAN Card
- Passport-sized Photograph
- Address Proof (Utility Bill/Bank Statement)
- Senior Citizen Proof (if applicable)
How to Apply for the BOB Fixed Deposit Plan
You can open a BOB FD both online and offline:
Offline Process:
- Visit the nearest Bank of Baroda branch
- Fill out the FD application form
- Submit KYC documents
- Deposit the investment amount via cheque or cash
Online Process:
- Log in to BOB NetBanking or Mobile Banking app
- Navigate to ‘Fixed Deposit’
- Select the deposit amount and tenure
- Upload necessary documents (if required)
- Confirm and authorize the transaction
Calculation of Returns: How ₹3 Lakh Grows to ₹3.75 Lakh
Here’s a detailed breakdown of how your money grows with the cumulative FD plan:
| Investment Amount | Tenure | Interest Rate | Total Return | Interest Earned | Category |
|---|---|---|---|---|---|
| ₹3,00,000 | 5 yrs | 6.50% | ₹3,75,050 | ₹75,050 | Regular Citizens |
| ₹3,00,000 | 5 yrs | 7.15% | ₹3,81,120 | ₹81,120 | Senior Citizens |
| ₹3,00,000 | 5 yrs | 7.50% | ₹3,86,760 | ₹86,760 | Super Senior Citizens |
Note: This is an approximate estimate assuming quarterly compounding.
Benefits of Investing in BOB Fixed Deposits
- Stable Returns: Fixed interest with zero risk
- Senior Citizen Advantage: Additional interest rates for elderly
- Flexible Tenure: Choose tenure from 7 days to 10 years
- Loan Facility: Avail loans against your FD at attractive interest
- Tax-Saving Options: Choose tax-saving FD for deductions under Section 80C
- Easy Liquidity: Option for premature withdrawal (with penalty)
Tax Implications on FD Returns
- Interest earned above ₹40,000 (₹50,000 for senior citizens) in a financial year is subject to TDS at 10%
- Investors can submit Form 15G/15H to avoid TDS if their income is below taxable limits
- Returns are taxable under “Income from Other Sources” in ITR
Who Should Invest in BOB FD Plan?
- Retired Individuals: Looking for safe returns post-retirement
- Risk-Averse Investors: Who prefer guaranteed returns over equity or mutual funds
- First-Time Investors: Who are new to investing and want to avoid volatility
- Tax Savers: Those looking to claim 80C benefits under tax-saving FD
Comparison with Other Banks’ FD Returns
| Bank Name | 5-Year FD Rate | Senior Citizen Rate | Max Interest Earned on ₹3L |
|---|---|---|---|
| Bank of Baroda | 6.50% | 7.15% – 7.50% | ₹75,050 – ₹86,760 |
| SBI | 6.50% | 7.25% | ₹75,050 – ₹81,350 |
| HDFC Bank | 7.00% | 7.75% | ₹81,080 – ₹87,450 |
| ICICI Bank | 7.00% | 7.75% | ₹81,080 – ₹87,450 |
| PNB | 6.75% | 7.25% | ₹78,720 – ₹81,350 |
Bank of Baroda’s Fixed Deposit scheme offering up to ₹75,050 on a ₹3 lakh investment is a great opportunity for risk-averse investors looking for stability and safety. With special rates for senior citizens and easy online account opening, it provides a hassle-free investment option. However, investors should always assess the latest interest rates, tax liabilities, and their personal financial goals before locking in their funds.
Interest rates and returns are subject to change. Please confirm current rates and terms with the bank before investing. This article is for informational purposes only and does not constitute financial advice.
