Bank of Baroda SDP Recurring Deposit Scheme

• Low Minimum Deposit: Start with just ₹50 per month (rural/semi-urban) or ₹100 (urban/metro). 

• Guaranteed Returns: Interest rates remain fixed throughout the tenure. 

• Quarterly Compounding: Interest is compounded every quarter and paid on maturity. 

• Loan Facility: Avail up to 95% of your deposit as a loan in emergencies. 

• Nomination Option: Assign a nominee for added security. 

• Premature Withdrawal: Allowed with applicable penalties. 

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Current Interest Rates 

Bank of Baroda offers competitive interest rates on its recurring deposit schemes. Senior citizens are eligible for higher rates. For updated rate details, visit the nearest BoB branch or check the official website. 

Eligibility Criteria 

• Individuals (single or joint account holders) 

• Minors (through a guardian) 

• Institutions like clubs, societies, associations, etc. 

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Required Documents 

To open an SDP account, you’ll need: 

• Valid identity proof (Aadhaar, PAN, Voter ID, etc.) 

• Address proof (utility bill, passport, etc.) 

• Recent passport-sized photograph 

How to Open an SDP Account 

1. Visit the Nearest Branch: Walk into any Bank of Baroda branch with your documents. 

1. Fill Out the Form: Complete the SDP application form. 

1. Choose Your Monthly Amount: Decide the amount you want to invest monthly. 

1. Submit Documents: Provide your identity and address proof. 

1. Make the First Payment: Start your savings journey. 

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Benefits of the BoB SDP Scheme 

• Encourages regular savings and financial discipline 

• Ideal for planning future goals like education, weddings, or retirement 

• Offers safe and stable returns with no market risk 

• Easy access to funds via loan against deposit 

• Available at all BoB branches across India 

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BoB SDP vs Other Saving Options 

Feature	BoB SDP	Mutual Fund SIPs	Fixed Deposits
Investment Mode	Monthly	Monthly	Lump sum
Risk Level	Low	Moderate to High	Low
Returns	Fixed	Market-dependent	Fixed
Loan Facility	Yes (up to 95%)	No	Usually Not
Liquidity	Medium	High	Low to Medium

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FAQs on BoB SDP Recurring Deposits

1. What is the Bank of Baroda SDP Recurring Deposit Scheme?

   The Bank of Baroda SDP (Systematic Deposit Plan) is a recurring deposit scheme that allows you to save fixed amounts every month for a predetermined period, earning guaranteed returns with quarterly-compounded interest.

2. What is the minimum deposit amount required to start an SDP account?

   You can start with a monthly deposit of ₹50 in rural/semi-urban areas and ₹100 in urban/metro branches.

3. What is the tenure range for the SDP scheme?

     You can choose a tenure ranging from 6 months to 120 months (10 years), based on your financial goals.  

4. Are the interest rates fixed for the entire deposit period?

   Yes, the interest rate is fixed at the time of account opening and remains unchanged for the entire tenure, ensuring predictable returns.

5. Can I withdraw my SDP amount before maturity?

   Yes, premature withdrawal is allowed, but it may incur penalties and a lower interest rate depending on the remaining tenure.

6. Can I get a loan against my SDP account?

     Yes, Bank of Baroda offers loans or overdrafts of up to 95% of your deposited amount, providing liquidity without breaking your deposit.  

7. Is there a penalty for missing monthly deposits?

   Yes, if a monthly installment is missed, a nominal penalty may be charged. Continued default can affect maturity value and interest accrual.

8. Is the interest earned on SDP taxable?

   Yes, interest income is subject to TDS (Tax Deducted at Source) as per the prevailing income tax rules.

9. Who can open a Bank of Baroda SDP account?

   Individuals (singly or jointly), minors (with a guardian), and institutions such as clubs, societies, and firms are eligible to open an SDP account.

10. How can I open an SDP account with Bank of Baroda?

    You can visit any Bank of Baroda branch with KYC documents or apply online through the bank’s official website or mobile banking app.

About the Author

Annie Jangam

Annie Jangam is a financial writer with a unique background in biotechnology and eight years of genomics research experience, culminating in 6 international publications. She combines her analytical and communication skills to simplify complex financial concepts, delivering precise and creatively engaging content in the fintech industry. She covers various financial products such as banking, insurance, credit cards, tax, commodities, and more. Outside of the financial realm, she dabbles in poetry. Her extracurricular passions include organizing events like One Billion Rising and Human Rights Day. She is committed to the equality of all people, a principle rooted in her Christian faith. Annie strives to embody the values of faith, hope, and love in both her work and her life.