Bank of Baroda, a public sector bank of India, offers a few fixed deposit (FD) schemes that cover the varying needs of retail customers. Just deposit your lump-sum savings in one of these accounts and rest assured to earn a competitive interest rate based on the tenure selected. Here is all that you should know about Bank of Baroda FD schemes.
RBI has announced a new rule applicable to unclaimed, matured FD accounts. That is the funds in an unclaimed, matured FD account will attract an interest rate as applicable to the savings account or the contracted rate of the matured FD, whichever is lower.
The interest rates provided in the table below are applicable to deposits below Rs.2 crore and is effective from 16 November 2020.
|Deposit Tenure||Interest Rate for Regular Customers (% p.a.)*|
|7 days to 14 days||2.80|
|15 days to 45 days||2.80|
|46 days to 90 days||3.70|
|91 days to 180 days||3.70|
|181 days to 270 days||4.30|
|271 days & above and less than 1 year||4.40|
|Above 1 year to 400 days||5.00|
|Above 400 days and upto 2 Years||5.00|
|Above 2 Years and upto 3 Years||5.10|
|Above 3 Years and upto 5 Years||5.25|
|Above 5 Years and upto 10 Years||5.25|
|Above 10 Years#||5.25|
*Interest rates are subject to change from time to time.
#Applicable to MACT/MACAD – Court Order schemes only.
Earn high interest rates even on FD accounts with a tenure of less than one year. You can think of the scheme as an ideal option for transitory savings to meet the requirements. The minimum deposit amount is Rs.1,000 and in multiples of Rs.100 thereafter. No upper limit is defined for deposit amount. The tenure can be between 7 days and less than 12 months.
The minimum deposit for this scheme is Rs.15,01,000 and in the multiples of Rs.1,000 thereafter. There is no maximum limit on the deposit amount. The tenure ranges from 12 months up to 120 months. Such an account receives preferential rates as decided by the bank.
The speciality of this scheme is that it comes with competitive interest rates along with a flexible withdrawal limit. The minimum deposit limit is Rs.5,000 and in multiples of Rs.1,000 thereafter. The tenure can be from 12 months up to 60 months.
You can opt for this scheme to get regular income in monthly or quarterly frequencies. Make a minimum deposit of Rs.1,000 and in multiples of Rs.100 thereafter with no upper limit. The deposit can be placed for 12 months up to 120 months. The interest earned on this deposit scheme can be paid out regularly and can be considered as a supplement income. The scheme offers the comfort of liquidity along with capital security.
The scheme pays monthly interest that can be considered as a fixed monthly income to meet your expenses. Retired senior citizens can opt for this scheme to deposit their retirement corpus and earn monthly income. The monthly income varies based on the money deposited in the account. An additional 0.5% interest rate is offered for senior citizens. Further, you can auto-renew the account upon maturity for a minimum of 12 months.
Avail increasing interest rates with longer periods of deposit. Since the interest will be compounded under the scheme, your savings are bound to grow faster. The minimum deposit for the account is Rs.1,000 and in multiples of Rs.100. The tenure is 12 months up to 120 months. A cheque will be pre-issued to you at the time of opening the account through which you can withdraw up to 95% of the deposit when needed.
Similar to other Bank of Baroda FD schemes, the minimum deposit for the account is Rs.1,000 and in multiples of Rs.100 and the tenure ranges from 12 months to 120 months. No processing fee for loan/advance facility.
This is an annuity-based scheme where the deposit must be made as directed by the court or tribunal under Motor Accident Claims. The MACAD account will be linked to a savings account under the MACT Claims SB Account Scheme in which the annuity amount will be credited. The minimum deposit must be such that the monthly annuity will be a minimum of Rs.1,000 as per the court or tribunal. The tenure of the account must be 36-120 months.
Baroda Tax Savings Term Deposit:
The deposit made in this account can get income tax deduction up to Rs.1.5 lakh per financial year under Section 80C of the Income Tax Act, 1961. Only the first account holder of such an account can claim the deduction. Senior citizens can get an additional 0.5% interest rate over and above the card rates. You can choose to receive the interest payout in your SB account monthly or quarterly. The account can be opened both online and offline.
There is a lock-in period for the deposit made in this account, i.e. 60 months. It can also go up to 120 months. The minimum deposit amount in this account can be Rs.100 and in multiples of Rs.100 thereafter. The interest will be compounded quarterly. Auto-renewal facilities are not available in this case.
Capital Gain Account Scheme, 1988:
Avail income tax exemption from capital gains by depositing the gains arising from the sale of assets in this account. The tax exemption can be availed under Section 54(F)(4) of the Income Tax Act, 1961.
Two types of accounts are available under the scheme – Account A (savings deposit) and Account B (term deposit). Individuals, firms, associations of persons, companies, HUF, and others can avail the benefits under Section 54, 54B, 54D, 54F, and 54G of the Income Tax Act, 1961. Joint accounts are not allowed. The minimum deposit for Account B is Rs.1,000.
Further, the aggregate interest income earned from any savings account, fixed deposits, and recurring deposits are not taxable until the limit of Rs.40,000 per financial year. The limit is Rs.50,000 for senior citizens. Upon crossing the limit, tax will be deducted at source by the bank at 10%. The limit may be subject to change as directed by the government.
If your annual income is within the basic exemption limit of Rs.2.5 lakh, then you can submit Form 15G/15H to the bank. This is to inform the bank of your annual income and request the bank not to deduct tax at source.
Our FD calculator page gives you a way to predict the returns you may receive upon putting your money in a fixed deposit account.
No. You don’t have to fill any form, provide a guarantor, or pay any processing fee to avail the loan facility against your deposit. The tenure for such a loan can be one day up to the maturity period of the deposit to meet short-term requirements.
The premature withdrawal policies may vary based on the FD account type. Some schemes will not impose any penalty in the case of premature withdrawal of deposits up to Rs.5 lakh if the deposit remained with the bank for a minimum of 12 months.
For deposits between Rs.5 lakh and Rs.1 crore, interest will be paid after reducing the applicable rate by 1% for the period the deposit has remained with the bank or the contracted rate, whichever is lower.
In the case of deposits above Rs.1 crore, 31 days’ notice period must be provided for premature withdrawal. Also, a penalty of 1.50% will be imposed on the applicable rate for the period the deposit remained with the bank.
Ideally, you are required to make the renewal request before the current FD account matures. If you make a renewal request after the date of maturity, overdue deposits will be renewed with effect from the date of maturity at the rate applicable on the due date provided that the renewal request is made within 14 days from the date of maturity. After 14 days, the interest for the overdue period will be equal to the rate decided by the bank.
The advance facility is not available for minor accounts in single name and HUFs.
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