Recurring deposits are a great way to save regularly and to build up a savings funds which might not have been possible otherwise. Bank of Baroda offers you an even better scheme which allows you to save flexibly every month. The Yatha Shakti Jama Yojana Scheme makes recurring deposits are more attractive scheme. Under this scheme, depositors must choose a core amount which is required to open the deposit. Subsequently, the core amount can be increased up to three times as and when the depositor has more to save.
Who can apply for a Yatha Shakti Jama Yojana RD?
The Yatha Shakti Jama Yojana RD scheme is open to all under the following guidelines:
- An individual can open the account in his or her own name.
- Individuals can open the account jointly.
- If the individual is a minor who is at least 10 years old, the deposit can be opened on conditions specified by the bank.
- Minors can also open this RD in their own name along with their parent or guardian.
- This scheme is not available for NRE deposit holders.
How does the scheme work?
- To open the deposit, you need an initial amount of at least Rs. 100.
- You can choose your initial amount in multiples of Rs. 100 up to a maximum of Rs. 10,000.
- The tenures for this deposit range from 10 months to 120 months. Terms can be chosen in chunks of 3 years such as 12 months, 15 months, 18 months, 21 months and so on.
- After you have opened the deposit, every month, you can either deposit your core amount or you can choose to deposit up to 3 times your core amount. This is subject to a maximum of Rs. 10,000 per month.
- For example, if you have chosen to start the deposit with Rs. 1,500, you can choose to deposit upto Rs. 4,500 on any subsequent month. But Rs. 1,500 should be contributed every month.
What are the benefits?
There are multiple benefits under this scheme. Apart from having flexibility with your monthly instalments, some of the benefits have been listed below.
The main benefit is the interest rate which is credited to year bi-annually, once in September and once in March.
Additional interest rate is offered over and above the regular rate for the following applicants:
- Senior Citizens are eligible to receive 0.50% additional interest on deposits below Rs. 1 crore.
- Staff and Ex-staff members are eligible to receive additional interest.
- Ex-staff members who are also senior citizens will receive both bonus interest rates.
Bank of Baroda offers nomination facilities so that your nominee or loved one will receive the deposit amount in case of your unfortunate demise.
You are allowed to close the deposit before the maturity date.
Loan and Overdraft
You can avail of a loan or overdraft facility against this deposit. Bank of Baroda will loan you up to 95% of the outstanding balance in your RD account. Your interest rate will be 1% above the interest rate given on FDs.
Bank of Baroda does not levy penalties for late payments.
Points to Note about the Yatha Shakti Jama Yojana RD Scheme
- The instalments must be paid monthly.
- Select your core amount wisely keeping in mind that you can step up your deposit only up to three times that of your core amount.
- The maximum monthly contribution cannot exceed Rs. 10,000.
- Interest will be paid to you twice a year.
- The deposit will mature one month after you make your last installment or on the deposit due date, whichever is later.
- This deposit is liable for TDS on the interest payments as per the extant guidelines.
- All other conditions applicable to the regular Bank of Baroda RD scheme will apply here as well.
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