A Recurring deposit (RD) account can be opened with Bank of Baroda for a period that ranges between 6 months and 10 years. General citizens are offered interest in the range of 5.00% p.a. to 5.70% p.a. for opening a Recurring Deposit account with the bank. Citizens above the age of 60 years are offered additional interest of 0.50% on all tenures.
Know more about Recurring Deposit
Rate of return offered by Bank of Baroda on RDs
In the table listed below, we provide you the interest rates offered by Bank of Baroda on recurring deposits depending on the tenure:
|Tenure||Interest rate of general public (p.a.)||Interest rate of senior citizens (p.a.)|
|181 days to 270 days||5.00%||5.50%|
|271 days to less than 12 months||5.00%||5.50%|
|12 months 1 day to 400 days||5.70%||6.20%|
|401 days to 2 years||5.70%||6.20%|
|2 years 1 day to 3 years||5.70%||6.20%|
|3 years 1 day to 5 years||5.70%||6.20%|
|5 years 1 day to 10 years||5.70%||6.20%|
Note: The mentioned rates are for deposits less than Rs.2 crore.
Types of Recurring Deposits offered by Bank of Baroda
The bank offers two types of recurring deposits. They are:
- Regular Recurring Deposit
- Flexible Recurring Deposit – Yatha Shakti Jama Yojna
Features of Regular Recurring Deposit
The features of Regular Recurring Deposits are listed below:
- A RD account can be opened with a minimum amount of Rs.50 (Rs.100 for urban and metro branches)
- There is no upper limit
- Nomination facility is available
- Can avail loan and overdraft facility up to 95% of the recurring deposit amoount
- Interest will be compounded quarterly and paid on maturity
- TDS will be deducted as per income tax rules
- Can be converted to Baroda Yatha Shakti Jama Yojna
Features of Flexible Recurring Deposit – Yatha Shakti Jama Yojna
Listed below are the features of Flexible Recurring Deposit – Yatha Shakti Jama Yojna:
- Can be opened with a minimum investment of Rs.100
- Maximum instalment is capped at Rs.10,000 per month
- The deposit tenure can be between 12 months and 120 months
- Interest will be paid and credited half-yearly
- Loan or overdraft facility is permitted up to 95% of outstanding balance
- There is no penalty on delayed payment of instalments
- Nomination facility is available
- TDS will be deducted as per the income tax rules
Who can open a Recurring Deposit account with Bank of Baroda?
A RD account with Bank of Baroda can be opened by:
- An individual
- Can be opened jointly
- Can be opened in the name of a minor aged above 10 years along with their father or mother
- Partnerships and joint stock companies
- Educational institutions
- Associations and clubs
How to open a Bank of Baroda Recurring Deposit account?
You can open an RD account with Bank of Baroda by visiting the bank branch along with the necessary documents or through net banking.
The documents which need to be submitted are listed below:
- Passport-size photograph
- Identity proof
- Address proof
Short-term Recurring Deposit Interest Rates
A RD account opened for a period that ranges between 6 months and less than a year are termed as short-term recurring deposits. The interest paid by the bank on such deposits is 5% p.a. for general citizens and 5.50% p.a. for senior citizens.
Medium Recurring Deposit Interest Rates
Medium-term recurring deposits are those which are opened for a period between 1 year and 3 years. are known as medium-term recurring deposits. Bank of Baroda offers a rate of return of 5.70% p.a. to the general citizens for opening a recurring deposit account. Citizens above the age of 60 years are offered additional interest of 0.50% on such deposits.
Long Term Recurring Deposit Interest Rates
Any RD account opened for a period of more than 3 years are known as long-term recurring deposits. The interest paid on such deposits for general and senior citizens are 5.70% and 6.20% p.a. respectively.
Bank of Baroda Recurring Deposit FAQs
Which forms should I submit if I want to avoid TDS?
In case, you want to avoid TDS submit form 15G/15H as applicable.
Will the bank offer TDS certificate?
Yes, the bank will provide TDS certificate to all the customers.
What is the maximum cap for RD accounts opened in the name of minors?
For RD accounts opened in the name of minors, the maximum cap is Rs.1 lakh.
What is the penalty for premature closure of Flexible Recurring Deposit – Yatha Shakti Jama Yojna?
For premature closure of the account, interest will be paid after deducting 1% from the applicable interest rate.
Can recurring deposits be transferred from one branch to the other?
Yes, RD accounts can be transferred from one branch to the other.
What is the purpose of a RD calculator?
By using a RD calculator, you can know the amount that you will be receiving at the time of maturity if you invest a certain amount of money for a specific period of time. All you need to do is enter the instalment amount, rate of interest and the tenure and click on ‘Calculate’.
How is the interest calculated?
The interest is calculated on daily balance.
RD Interest Rate Pages
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RD Other Pages
- Recurring Deposit Vs. Chit Fund
- Miss to Pay the Recurring Deposit Due
- Difference Between Recurring Deposit and SIP
- Open RD Account through HDFC NetBanking
- RD Account in SBI
- Advantages of Recurring Deposit
- Flexi RD
- SBI Flexi RD Schemes