Bank of Baroda offers recurring deposit (RD) schemes to its retail customers. The bank offers two RD schemes that cover both fixed monthly deposit and flexible monthly deposit features. Read through to know more about how each of the schemes works and understand the policies applicable before choosing.

1. Recurring Deposit Interest Rates 2021 of Bank of Baroda

The interest rates given in the table below are effective from 16 November 2020.

Deposit Tenure

Interest Rates for Regular Customers (% p.a.)*

180 days

3.70

181 days to 270 days

4.30

271 days & above and less than 1 year

4.40

1 year

4.90

Above 1 year up to 400 days

5.00

Above 400 days and up to 2 Years

5.00

Above 2 Years and up to 3 Years

5.10

Above 3 Years and up to 5 Years

5.25

Above 5 Years and up to 10 Years

5.25

Interest rates are subject to change from time to time.

2. Different Types of Bank of Baroda RD Schemes

  1. Recurring Deposit:

    Individuals and non-individuals can open this account with a minimum monthly deposit of Rs.50 in rural and semi-urban branches and Rs.100 in urban and metro branches. There is no upper limit on the deposit. The tenure can be from 6 months to 120 months. The interest will be compounded quarterly and paid on maturity.

  2. Flexible Recurring Deposit Scheme – Yatha Shakti Jama Yojna:

    This scheme provides an opportunity for the account holders to make flexible monthly instalment payments. The minimum monthly deposit amount, i.e. the core instalment, is Rs.100 and in the multiples of Rs.100 above the core amount. The monthly deposit can be increased up to three times the core amount with an upper limit of Rs.10,000. The tenure can range from 12 months up to 120 months.

  3. Baroda Holiday Saving Recurring Deposits:

    You can plan for your dream holiday with the Baroda Holiday Saving RD scheme conveniently. The bank has partnered with Thomas Cook India to offer domestic and international holiday packages. Go on a trip in a year at today’s cost.

    The cost of any package you choose will be divided into 13 equal instalments, but you only need to pay 12 instalments, i.e. the tenure is 12 months. The 13th instalment will be funded by the interest earned from the 12 instalments you had paid. Thomas Cook India will finance any shortfalls.

3. Bank of Baroda RD Special Features and Benefits

  • The minimum monthly deposit amount required to open the account is Rs.50 in rural and semi-urban branches and Rs.100 in urban and metro branches.
  • The tenure can range from 6 months up to 120 months.
  • Make flexible monthly payments based on the surplus at hand with the flexible RD scheme.
  • Get attractive interest rates on the deposits you make.
  • Premature withdrawal option is available subject to certain conditions.
  • Loan/overdraft facility is permitted up to 95% of the outstanding balance.
  • Penalty may be applicable for delayed payments.
  • Nomination facility is available.
  • Tax will be deducted at source as per the prevalent income tax rules.
  • Interest certificates will be issued at the request of the account holder.

4. Basic Eligibility Criteria for Bank of Baroda RD

  • An individual in his/her name.
  • More than one individual in a joint name.
  • Minor of age 10 years and above as per the bank’s policies.
  • Minors below the age of 10 years can open an account with their father/mother or guardian as per bank’s extant guidelines.
  • Clubs, associations, educational institutions, partnerships, and joint-stock companies, provided they are registered, and the bank is satisfied that the account is opened for genuine savings purposes.

5. Tax Liabilities on Bank of Baroda Recurring Deposit

Income tax will be deducted at source (TDS) by the bank if the interest earned on the FD and RD accounts across all bank branches exceed Rs.40,000 per financial year. The limit for senior citizens is Rs.50,000. Note that TDS will be applicable at 10%.

TDS is now reduced from 10% to 7.5% due to the pandemic, effective from May 2020 until March 2021. You can submit Form 15G or Form 15H, as applicable, to request the bank not to deduct tax at source only if your annual income is within the basic exemption limit.

6. RD Interest Rate Calculator

Our RD calculator gives you an opportunity to estimate the returns you can expect, by investing in RD over a period, free-of-charge.


Frequently Asked Questions (FAQs)

Do senior citizens, and bank staff get additional interest rates?
Yes. Senior citizens and bank staff (including ex-staff) get additional interest rates as per the prevalent bank guidelines. Retired staff members who are senior citizens shall get the benefit of both staff rate and the senior citizen benefits.
What is the prevalent policy regarding premature withdrawal?
In the case of premature withdrawal, a penalty of 1% of the interest rate will be applied. That is the penalty of 1% will be reduced from the applicable rate or the contracted rate, whichever is lower in the cases subject to penalty.
I was unaware of the Flexible RD scheme when I opened the regular RD scheme. Can I get it converted now?
Yes. The bank allows you to request for a conversion of a regular RD account into the Yatha Shakthi Jama Yojana at any point in time. Please contact the bank representatives for more information on the same.
How is the penalty calculated for delayed payments?
Deposits made during the calendar month in which it is due shall be deemed the payment made on time by the bank. Therefore, no penalty is applied in this case. When it comes to delaying payment until the next calendar month or later, a penalty will be imposed at Re.1 + GST for every Rs.100 per month. The fraction of a number will be treated as a full month for calculating the penalty.

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