Overview of Bank of Baroda
Bank of Baroda (BoB) is one of the largest public sector banks in the country with over 100 years of rich heritage. It was founded in 1908 by Maharaja Sayajirao Gaekwad III, the erstwhile Maharaja of Baroda State. Headquartered in Mumbai, this BSE listed bank has massive presence in major cities, towns and villages across the country with subsidiaries in international locations.
In India, BoB provides a complete range of banking products and financial services catering to the needs of a massive customer base which includes retail, corporate and institutional customers.
Recurring Deposit (RD) from Bank of Baroda
The bank extends pleasing schemes in the Recurring Deposits portfolio to suit the investment needs of various types of customers. These schemes come with an assortment of features fulfilling the savings needs of different types of customers. The following are the schemes under Recurring Deposit.
- Recurring Deposit (Basic) - A simple saving option that lets helps you to mobilise your investment needs, starting at as less at Rs.50 per month (rural and semi-urban) at interest rates on par with market standards.
- Baroda Samriddhi Quarterly Recurring Deposit - A unique scheme with a feature that accepts quarterly deposits at attractive interest rates and terms. Builds the corpus slow and steady.
- Baroda Samriddhi Half Yearly Recurring Deposit - One of its kind RD scheme in the banking market which lets you make investment on a half yearly basis with pleasing terms and rates.
- Yatha Shakthi Jama Yojana - The scheme which gives you the flexibility to invest a varying monthly amount based on certain conditions which result in better yield upon maturity. Choose a “core amount” and build as per availability.
Features and Benefits of Bank of Baroda Recurring Deposit
Recurring Deposit (Basic)
- The minimum amount required for opening an RD account is Rs.50 in rural and semi-urban areas, and Rs.100 in urban and metro centers. Following deposits should be in multiples of Rs.50 and 100 respectively.
- Deposit tenure can range from 6 months to 120 months. The depositor is free to choose a term of his choice.
- Interest rates are applied on a quarterly basis and will be paid together with the principal at the end of term.
- An option to avail loan/overdraft on the basis of the RD amount is available. Up to 95% credit is provided.
Baroda Samriddhi Quarterly Recurring Deposit
- The minimum amount of initial deposit starts at Rs.500 and following deposits can be in multiples of Rs.100.
- The deposits made will be on a quarterly basis. Helps in mobilising savings for those with limited income.
- The tenure starts at 36 months with an upper cap of 120 months.
- Interest charges are compounded on a quarterly basis and paid upon maturity.
- Loan/overdraft facility is available for up to 95% of the parked amount in the RD account.
Baroda Samriddhi Half Yearly Recurring Deposit
- The minimum deposit amount is Rs.1,000. Subsequent deposits can be made in multiples of Rs.100.
- Unlike the conventional RD scheme, deposits are on a half yearly basis.
- The lower cap on deposit tenure is 36 months that can be stretched up to 120 months.
- Compounded interest charges are on a half yearly basis, payable at the end of deposit tenure.
- Akin to other schemes in the RD portfolio, loan/overdraft facility is available on the outstanding amount in the account for up to 95% of the deposit value.
Yatha Shakthi Jama Yojana
- The depositor gets the flexibility of choosing a core amount starting at Rs.100 which can be increased in multiples of Rs.100. This core amount acts as a base to conveniently increase the monthly deposit amount.
- The monthly installment can be raised up to 3 times of the core amount with a cap of Rs.10,000 per month.
- Deposit tenure starts at 12 months with an upper limit of 120 months.
- Interest rates are compounded on a quarterly basis similar to other schemes in this category.
Interest Rates Offered on Bank of Baroda’s Recurring Deposit
Owing to the assortment of RD schemes from BoB, interest rates from the bank varies depending on the deposit tenor and other terms. Considering a minimum term of 6 months and investment amount being below 1 crore, one can earn a handsome interest ranging from 7% to 8.25%.
Senior citizens are eligible for an additional interest of 0.50% on the prevailing rates. Former/current employees of the bank also qualify for this enhancement. Do inquire with the nearest branch for exclusive interest rates on large value deposits.
Opening a Recurring Deposit Account with Bank of Baroda
Existing BoB savings/current account holders can easily open an RD linked to the main account by submitting the relevant form. Non account holders can contact the nearest branch for procedure relating to opening an RD. The following documents are required at the time of signing up.
- ID and address proof
- Passport sized photograph
- Introduction as per bank rules
- Pan and contact details
In addition to the above, BoB may require additional documents which will be conveyed at the time of opening an RD account.
Penalty on Premature Withdrawal
A deduction of 1% on the agreed interest rate will be made if the depositor decides to withdraw the deposit amount before the term close date. The remainder amount will be paid out after closing the account on banking system. This penalty is applicable to all the four RD schemes.