BOB Recurring Deposit Interest Rates
Introduction:
The recurring deposit scheme from BOB is highly coveted, allowing customers to set aside a portion of their monthly earnings and enjoy the rewards after a specific period.
Established by Maharaja Sayajirao Gaekwad III on July 20, 1908, and later nationalized on July 19, 1969, the Bank of Baroda has grown into the third-largest public sector bank in India.
With its appealing BOB RD interest rates and additional advantages, investing in BOB RD is a wise decision.
The recurring deposit scheme from BOB is highly coveted, allowing customers to set aside a portion of their monthly earnings and enjoy the rewards after a specific period.
Established by Maharaja Sayajirao Gaekwad III on July 20, 1908, and later nationalized on July 19, 1969, the Bank of Baroda has grown into the third-largest public sector bank in India.
With its appealing BOB RD interest rates and additional advantages, investing in BOB RD is a wise decision.
Features of BOB Recurring Deposit
Characteristics of BoB RD Interest Rates 2024:
Applicants can request a loan and receive up to 95% of the RD amount.
Any family member or the investor's spouse can be designated as the nominee to receive the final sum.
The duration of deposits ranges from as short as 6 months to as long as 10 years (120 months).
TDS deductions are applied in accordance with the prevailing income tax regulations at the time of opening the RD account.
Deposits can be made in increments of Rs 100 as a minimum.
Access to facilities is available at any Bank of Baroda branch.
Quarterly and half-yearly RD options are also provided as part of their schemes.
Characteristics of BoB RD Interest Rates 2024:
Applicants can request a loan and receive up to 95% of the RD amount.
Any family member or the investor's spouse can be designated as the nominee to receive the final sum.
The duration of deposits ranges from as short as 6 months to as long as 10 years (120 months).
TDS deductions are applied in accordance with the prevailing income tax regulations at the time of opening the RD account.
Deposits can be made in increments of Rs 100 as a minimum.
Access to facilities is available at any Bank of Baroda branch.
Quarterly and half-yearly RD options are also provided as part of their schemes.
Recurring Deposit Interest Rates - 2024
Banks
Interest
Rates (PA)
Interest
Rates (PA)
Interest Rate
for Seniors (PA)
Interest Rate
for Seniors (PA)
Bandhan Bank RD Interest Rate
Bandhan Bank RD
Interest Rate
3.0% - 7.25%
3.5% - 7.75%
₹15,000
Kotak Mahindra Bank RD Interest Rate
Kotak Mahindra
Bank RD Interest Rate
Kotak Mahindra Bank RD
Interest Rate
4.0% - 7.25%
4.0% - 7.25%
4.0% - 7.75%
IDFC First Bank Rd Interest Rate
Central Bank
of India
3.5% - 7.0%
3.5% - 7.0%
4.0% - 7.5%
YES Bank RD Interest Rate
YES Bank RD
Interest Rate
7.45% - 7.75%
7.95% - 8.25%
RBL Bank RD Interest Rate
RBL Bank RD
Interest Rate
3.0% - 7.25%
3.0% - 7.25%
3.5% - 7.75%
Eligibility Criteria
Eligibility Requirements for Bank of Baroda Recurring Deposit Scheme:
Opening an RD account necessitates Indian citizenship or belonging to a Hindu Undivided Family (HUF).
NRIs have the option to choose a BOB RD account via NRO (Non-Resident Ordinary Account) or NRE (Non-Resident External Account).
Minors may also have an RD account established at Bank of Baroda, provided their financial affairs are overseen by their guardians.
Eligibility Requirements for Bank of Baroda Recurring Deposit Scheme:
Opening an RD account necessitates Indian citizenship or belonging to a Hindu Undivided Family (HUF).
NRIs have the option to choose a BOB RD account via NRO (Non-Resident Ordinary Account) or NRE (Non-Resident External Account).
Minors may also have an RD account established at Bank of Baroda, provided their financial affairs are overseen by their guardians.
Eligibility Requirements for Bank of Baroda Recurring Deposit Scheme:
Opening an RD account necessitates Indian citizenship or belonging to a Hindu Undivided Family (HUF).
NRIs have the option to choose a BOB RD account via NRO (Non-Resident Ordinary Account) or NRE (Non-Resident External Account).
Minors may also have an RD account established at Bank of Baroda, provided their financial affairs are overseen by their guardians.
Documents Required
Required Documents for Bank of Baroda RD Account Opening:
Identity Proof:
Passport
PAN card
Voter ID card
Driving License
Government ID card
Photo ration card
Senior citizen ID card
Address Proof:
Passport
Telephone bill
Electricity bill
Bank statement with cheque
Certificate/ID card issued by the post office
Required Documents for Bank of Baroda RD Account Opening:
Identity Proof:
Passport
PAN card
Voter ID card
Driving License
Government ID card
Photo ration card
Senior citizen ID card
Address Proof:
Passport
Telephone bill
Electricity bill
Bank statement with cheque
Certificate/ID card issued by the post office
Required Documents for Bank of Baroda RD Account Opening:
Identity Proof:
Passport
PAN card
Voter ID card
Driving License
Government ID card
Photo ration card
Senior citizen ID card
Address Proof:
Passport
Telephone bill
Electricity bill
Bank statement with cheque
Certificate/ID card issued by the post office
Types of BOB Recurring Deposit Schemes
Bank of Baroda Recurring Deposit Scheme Offerings:
Yatha Shakti Jama Yojna (Flexible recurring deposit scheme):
Interest is paid on a half-yearly basis.
Minimum deposit to open an account is Rs. 100, while the maximum deposit can be three times the core installment, up to Rs. 10,000 per month.
Tenure ranges from 12 months to 120 months (10 years).
Customers can avail 95% of the outstanding amount in the RD account as a loan or overdraft facility.
A penalty of 1% from the applicable rate is levied in case of premature withdrawal.
Baroda Holiday Saving Recurring Deposits:
Minimum monthly contribution: Rs. 100.
Tenure: Minimum/maximum of 12 months.
Interest is compounded quarterly.
A penalty of 1% of the applicable rate is charged for premature withdrawal.
Regular Income cum Recurring Deposit:
Minimum deposit: Rs. 1000.
Tenure: 12 months to 120 months.
Interest is paid on a half-yearly basis and compounded quarterly.
No penalty for premature withdrawal of deposits up to Rs. 5 lakhs, provided the amount has been with the bank for 12 months.
Bank of Baroda Recurring Deposit Scheme Offerings:
Yatha Shakti Jama Yojna (Flexible recurring deposit scheme):
Interest is paid on a half-yearly basis.
Minimum deposit to open an account is Rs. 100, while the maximum deposit can be three times the core installment, up to Rs. 10,000 per month.
Tenure ranges from 12 months to 120 months (10 years).
Customers can avail 95% of the outstanding amount in the RD account as a loan or overdraft facility.
A penalty of 1% from the applicable rate is levied in case of premature withdrawal.
Baroda Holiday Saving Recurring Deposits:
Minimum monthly contribution: Rs. 100.
Tenure: Minimum/maximum of 12 months.
Interest is compounded quarterly.
A penalty of 1% of the applicable rate is charged for premature withdrawal.
Regular Income cum Recurring Deposit:
Minimum deposit: Rs. 1000.
Tenure: 12 months to 120 months.
Interest is paid on a half-yearly basis and compounded quarterly.
No penalty for premature withdrawal of deposits up to Rs. 5 lakhs, provided the amount has been with the bank for 12 months.
BOB RD Premature Withdrawal Facility
Bank of Baroda offers the option of early withdrawal on their recurring deposits, subject to a 1% deduction from the applicable interest rate corresponding to the selected RD scheme if the depositor chooses to withdraw the deposited sum before the predetermined tenure. However, partial withdrawal options are not available.
Nomination:
Depositors have the liberty to nominate beneficiaries for their Bank of Baroda RDs.
Account Convenience:
The bank's online platform streamlines the process of initiating and overseeing recurring deposit investments, ensuring simplicity and convenience for users.
Bank of Baroda offers the option of early withdrawal on their recurring deposits, subject to a 1% deduction from the applicable interest rate corresponding to the selected RD scheme if the depositor chooses to withdraw the deposited sum before the predetermined tenure. However, partial withdrawal options are not available.
Nomination:
Depositors have the liberty to nominate beneficiaries for their Bank of Baroda RDs.
Account Convenience:
The bank's online platform streamlines the process of initiating and overseeing recurring deposit investments, ensuring simplicity and convenience for users.
Tax Exemptions on BOB RD
Bank of Baroda, like all other recurring deposit schemes, falls under the purview of taxation as per the Income Tax Act 1961. When you invest in an RD, the deposited amount is considered part of your annual income.
As per the existing tax regulations, a Tax Deducted at Source (TDS) of 10% is levied on the interest earned, provided it exceeds Rs. 40,000 per annum (previously Rs. 10,000 before FY 2019-20).
To avoid TDS on your RD returns, you have the option to submit either Form 15G or Form 15H. These forms serve to declare that your income is below the taxable limit, thus exempting you from TDS deduction.
Conditions for Form 15G Submission:
Eligibility: Applicants must be individuals or Hindu Undivided Families (HUFs).
Residency: Only Resident Indians are eligible to apply.
Age Limit: Applicants should be below 60 years of age.
Tax Liability: Tax calculated on the total income should be zero.
Income Threshold: The total interest income for the year should fall below the minimum exempt income threshold, set at Rs. 2.5 lakh for FY 2023-24 (AY 2023-24).
Bank of Baroda, like all other recurring deposit schemes, falls under the purview of taxation as per the Income Tax Act 1961. When you invest in an RD, the deposited amount is considered part of your annual income.
As per the existing tax regulations, a Tax Deducted at Source (TDS) of 10% is levied on the interest earned, provided it exceeds Rs. 40,000 per annum (previously Rs. 10,000 before FY 2019-20).
To avoid TDS on your RD returns, you have the option to submit either Form 15G or Form 15H. These forms serve to declare that your income is below the taxable limit, thus exempting you from TDS deduction.
Conditions for Form 15G Submission:
Eligibility: Applicants must be individuals or Hindu Undivided Families (HUFs).
Residency: Only Resident Indians are eligible to apply.
Age Limit: Applicants should be below 60 years of age.
Tax Liability: Tax calculated on the total income should be zero.
Income Threshold: The total interest income for the year should fall below the minimum exempt income threshold, set at Rs. 2.5 lakh for FY 2023-24 (AY 2023-24).
How to Open a Recurring Deposit Account in BOB?
How to Initiate an RD Account at BOB? Commencing a recurring deposit account with Bank of Baroda is a straightforward process, achievable through both online and offline avenues.
Online Approach –
This method is exclusively available to individuals with an active BOB internet banking account. To inaugurate an RD account, simply log in to your net banking platform and navigate to the option for creating a new recurring deposit account. Subsequently, specify the installment amount, select the tenure, and designate the linked account—either a current or savings account.
Offline Procedure –
For those opting to apply for the Bank of Baroda Recurring Deposit scheme offline, completion of an application form is mandatory. Obtain the form either from your nearest BOB branch or through online channels. Ensure eligibility criteria are met and provide the requisite documents alongside the application for RD account initiation at the bank.
While most RD account openings can be facilitated using a unified application form, the commencement of a flexible RD account with BOB mandates the completion of the Yatha Shakti Jama Yojana application form.
The enticing BoB RD interest rates underscore the attractiveness and security of Recurring Deposits in India. Furthermore, value-added features such as loan provisions, quarterly and half-yearly RD options, nominal minimum deposits, among others, bolster its appeal for individuals seeking comprehensive flexibility in Recurring Deposit Schemes. However, prudent consideration of all terms and conditions is recommended prior to scheme selection.
How to Initiate an RD Account at BOB? Commencing a recurring deposit account with Bank of Baroda is a straightforward process, achievable through both online and offline avenues.
Online Approach –
This method is exclusively available to individuals with an active BOB internet banking account. To inaugurate an RD account, simply log in to your net banking platform and navigate to the option for creating a new recurring deposit account. Subsequently, specify the installment amount, select the tenure, and designate the linked account—either a current or savings account.
Offline Procedure –
For those opting to apply for the Bank of Baroda Recurring Deposit scheme offline, completion of an application form is mandatory. Obtain the form either from your nearest BOB branch or through online channels. Ensure eligibility criteria are met and provide the requisite documents alongside the application for RD account initiation at the bank.
While most RD account openings can be facilitated using a unified application form, the commencement of a flexible RD account with BOB mandates the completion of the Yatha Shakti Jama Yojana application form.
The enticing BoB RD interest rates underscore the attractiveness and security of Recurring Deposits in India. Furthermore, value-added features such as loan provisions, quarterly and half-yearly RD options, nominal minimum deposits, among others, bolster its appeal for individuals seeking comprehensive flexibility in Recurring Deposit Schemes. However, prudent consideration of all terms and conditions is recommended prior to scheme selection.
How to Calculate the Maturity Amount on BOB Bank RD?
Determining BOB RD Interest:
The computation for RD interest rates employs the formula A = P(1+r/n)^(nt), with ‘A’ signifying the concluding sum, ‘P’ representing the principal amount, ‘r’ denoting the annual interest rate, ‘n’ reflecting the frequency of interest compounding, and ‘t’ indicating the duration.
Note: Utilize the Bank of Baroda RD Calculator to ascertain the interest accrued on all deposits.
Determining BOB RD Interest:
The computation for RD interest rates employs the formula A = P(1+r/n)^(nt), with ‘A’ signifying the concluding sum, ‘P’ representing the principal amount, ‘r’ denoting the annual interest rate, ‘n’ reflecting the frequency of interest compounding, and ‘t’ indicating the duration.
Note: Utilize the Bank of Baroda RD Calculator to ascertain the interest accrued on all deposits.
1.) How can I close my RD account?
You can close your RD account either by visiting your bank branch, using net banking, or through the bank's mobile application.
2.) Where will the closure proceeds be deposited?
The closure proceeds will be credited to the same savings bank account from which the recurring deposit payments were deducted.
3.) Is it necessary to visit the bank branch to close the RD account?
No, you can also close your RD account using net banking or the bank's mobile application.
4.) Can I close my RD account online?
Yes, you can close your RD account online through net banking or the bank's mobile application.
5.) Will I receive the closure proceeds immediately?
The closure proceeds will be deposited into your savings account, usually within a few business days after the closure request is processed.
Author
Harish Malhi
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