BOB RD Interest Rates – Open RD Account Online

Headquartered in Vadodara, Bank of Baroda is the 2nd largest public sector bank in India, offering secure investment opportunities such as recurring and fixed deposits. With this, customers from all sections of India can invest minimal monthly amounts and earn plenty with Bank of Baroda RD interest rates. Here is a comprehensive guide on BOB RD schemes and their applicable interest rates. 

BOB RD Interest Rates 2024

Investing in RDs is beneficial for people who do not want to invest a lump sum amount at once and prefer to pay a minimal amount per month for a long tenure and earn interest safely. Be it, general citizens or senior citizens, investing is profitable with Bank of Baroda RD interest rates. 

Let’s check out the latest rates offered by the bank. 

Note: The above-mentioned Bank of Baroda RD rates are in effect from 30.10.2023. Moreover, these rates are subject to change without prior notice. 

Features of Bank of Baroda Recurring Deposit Interest Rates

Here are some of the interesting features of Bank of Baroda RD interest rates. 

1. The interest is compounded quarterly. 
2. Staff members get the benefit of additional interest in RDs. 
3. The interest rates of senior citizens are higher as compared to general citizens. 
4. A loan of up to 95% of the outstanding balance is available. 
5. For delay of instalment payment, there is a penalty of ₹1 for every ₹100/month. 

How to Open an BOB RD Account Online?

You can open a BOB RD account online very conveniently through its net banking portal. Here are the steps you have to follow. 

• Step 1: Log in to your net banking account in Bank of Baroda. 
• Step 2: Navigate to the option ‘New Recurring Deposit Account’.
• Step 3: Provide necessary details such as instalment amount and tenure. 
• Step 4: Link your savings or current account to the RD account. 

How to Open an RD Account in Bank of Baroda Offline?

Besides online, an individual can also open an RD account in the Bank of Baroda offline. Here’s how to do so. 

• Step 1: Visit the nearest Bank of Baroda branch and ask for an RD opening form. 
• Step 2: Fill out the form with essential details and submit it with a cheque for the instalment amount and KYC documents. 

How to Calculate BOB RD Interest Rates?

There are two ways of calculating the maturity amount of an RD investment at the Bank of Baroda.

RD Calculation Formula 

A = P x (1 + R/N)^NT

In this formula: 

• A = maturity amount
• R = interest rate
• P = principal amount 
• T = tenure 
• N = number of times the interest will compound per year 

Suppose you want to invest ₹3,000 in a monthly RD scheme, earning interest at a rate of 6.50% for 5 years. In that case, P is ₹3,000 per month, T is 5 years or 60 months and R is 6.50%. 

Hence, A = 3000 x (1 + 6.50/4)^4×60 = ₹2,12,972. 

Although it seems simple, manual calculation of RD maturity value using the mathematical formula may lead to inaccurate values. It is safer and more convenient to use the Bank of Baroda RD calculator. 

Bank of Baroda RD Calculator 

Follow these steps to calculate your maturity amount. 

• Step 1: Navigate to the official webpage of the Bank of Baroda RD calculator. The calculator interface will display on your screen. 
• Step 2: Enter the monthly deposit amount, and tenure. 
• Step 3: Select ‘Senior Citizen’ on the ‘Type of Customer’ option if you are above 60 years of age. 

The calculator will automatically show your total RD investment at the end of the tenure. 

Eligibility Criteria to Start an RD Account with Bank of Baroda

Here is a list of entities that are eligible to apply for BOB RD schemes and reap benefits from the latest Bank of Baroda RD interest rates. 

1. Resident Indians
2. Joint account holders
3. Minors under legal guardianship 
4. Clubs
5. Partnerships
6. Associations
7. Educational institutions
8. Joint stock companies 

Documents Required for BOB RD Account

Here is a list of documents an individual has to submit apart from an application form for an RD opening in the Bank of Baroda. 

1. In the Case of Resident Individuals 

1. Passport
2. Driving Licence with photo
3. Aadhaar Card 
4. Voter’s Identity Card issued by the Election Commission of India
5. Job card issued by NREGA duly signed by an officer of the State Government
6. Letter issued by the National Population Register 

2. In the Case of Non-resident Individuals 

1. Passport 
2. Visa 
3. Identity Card 
4. Admission Letter by a Foreign Institution/College 
5. Rent Agreement 

Types of Bank of Baroda RD Accounts

Bank of Baroda offers two types of RD schemes for its customers: 

1. BOB Systematic Deposit Plan 

It is a basic monthly plan that helps customers to save every month and earn high returns. The interest earned from this type of RD scheme is compounded quarterly. The BOB regular recurring deposit scheme is highly popular among resident individuals due to its flexible liquidity options.  

• Minimum Deposit: ₹50/month for rural and semi-urban branches and ₹100/month for urban and metro branches
• Maximum Deposit: No limit specified 
• Tenure: 6 months to 10 years
• Interest Rate: 6.50% to 7.25% for the general citizens and 7.15% to 7.50% for senior citizens 
• Eligibility: Indian residents 

2. Flexible Recurring Deposit Scheme 

The BOB Flexible Recurring Deposit Scheme, commonly known as the Yatha Shakti Jama Yojana, is another type of recurring deposit which comes with half-yearly interest payout options. Under this scheme, the interest is also compounded on a half-yearly basis and is credited only in September and March. 

• Minimum Deposit: ₹100/month 
• Maximum Deposit: ₹10,000/month for individuals above 18 years of age and ₹1,00,000/month for minors 
• Tenure: 12 months to 10 years
• Interest Rate: 6.50% to 7.25% for the general citizens and 0.50% extra for senior citizens below deposits of ₹1 crore 
• Eligibility: Indian residents, minors, senior citizens,  partnerships, joint stock companies, clubs, educational institutions and associations

Bank of Baroda RD Premature Withdrawal Rules

The Bank of Baroda recurring deposits come with no lock-in period, allowing all account holders to liquidate or withdraw their RD investment prematurely. However, the bank charges a penalty upon doing so. 

Bank of Baroda RD Penalty

The Bank of Baroda levies penalty in two scenarios: 

• In case of premature closure, the bank credits interest after deducting a penalty of 1% from the contracted rate or applicable rate, whichever is lower. 
• In case of delayed payment, there would be a deduction of ₹1 per every deposit of ₹100 in a year. 

How to Close Bank of Baroda RD Account Offline?

Go through the steps below to close your BOB recurring deposit account at Bank of Baroda: 

• Step 1: Visit the nearest Bank of Baroda branch and ask for an RD Account Closure Form. 
• Step 2: Attach a copy of the PAN and submit the duly signed form to the branch manager or the officer in charge. If it is a joint account, all account holders need to provide signatures on this form.
• Step 3: Submit the RD receipt or the RD certificate. 

When verification is complete, you can withdraw the total maturity amount or opt for a transfer of the fund to another account. 

TDS on Bank of Baroda RD

As per the prevailing Income Tax Act guidelines, earned interest is subject to Tax Deducted at Source (TDS). TDS is applicable on deposits that generate more than ₹40,000 as interest in a financial year. 

Loan Against Bank of Baroda Recurring Deposit

Bank of Baroda offers a loan against 95% of the RD balance. The following are the features of the loan against RD facility provided by the bank. 

1. The interest payable for the loan against RD is lower than the interest rates applicable on a personal loan. 
2. The facility is a type of secured loan.
3. The recurring deposit will act as collateral for the loan.
4. In case there is a default in loan repayment, the bank will adjust it with the RD balance.

Conclusion

The blog aims to provide you with a clear understanding of the latest Bank of Baroda RD interest rates and other relevant details associated with its schemes. However, make sure to verify the applicable interest rates before investing your hard-earned money in an RD scheme since these are subject to frequent changes. 

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