The Bank of Baroda (BOB) Recurring Deposit (RD) scheme is a favored choice, enabling customers to save a portion of their monthly income and reap benefits after a set period.

Founded by Maharaja Sayajirao Gaekwad III on July 20, 1908, and nationalized on July 19, 1969, the Bank of Baroda ranks as the third-largest public sector bank in India.

With attractive BOB RD interest rates and additional perks, investing in BOB RD is a wise option.

Eligibility Criteria

Eligibility Requirements for Bank of Baroda Recurring Deposit Scheme:

• Opening an RD account requires Indian citizenship or belonging to a Hindu Undivided Family (HUF).
• NRIs can opt for a BOB RD account through NRO (Non-Resident Ordinary Account) or NRE (Non-Resident External Account).
• Minors can also open an RD account at Bank of Baroda under guardian supervision.

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

Types of BOB Recurring Deposit Schemes

Bank of Baroda Recurring Deposit Scheme Offerings:

1. Yatha Shakti Jama Yojna (Flexible recurring deposit scheme): Interest is paid semi-annually. Minimum deposit is Rs. 100, with maximum three times the core installment, up to Rs. 10,000 monthly. Tenure ranges from 12 months to 120 months. Avail 95% of the RD account's outstanding amount as a loan or overdraft. A 1% premature withdrawal penalty applies.
2. Baroda Holiday Saving Recurring Deposits: Minimum monthly contribution is Rs. 100. Tenure is between 12 months minimum and maximum. Interest compounds quarterly. A 1% penalty on the applicable rate is charged for premature withdrawal.
3. Regular Income cum Recurring Deposit: Minimum deposit is Rs. 1000. Tenure ranges from 12 months to 120 months. Interest is paid half-yearly and compounded quarterly. No penalty for premature withdrawals up to Rs. 5 lakhs if the amount is banked for at least 12 months.

BOB RD Premature Withdrawal Facility

The Bank of Baroda offers early withdrawal on recurring deposits, with a 1% deduction from the applicable interest rate if withdrawn before the agreed term. Partial withdrawal is unavailable.

Nomination: Depositors can nominate beneficiaries for their RD accounts.

Account Convenience: BOB's online platform simplifies the initiation and management of recurring deposits for user convenience.

Tax Exemptions on BOB RD

BOB RDs are subject to taxation as per the Income Tax Act 1961. Deposited amounts count as annual income. A TDS of 10% is applied if interest exceeds Rs. 40,000 annually. To avoid TDS, submit Form 15G or Form 15H, declaring income below the taxable limit.

Conditions for Form 15G Submission:
Eligibility includes individuals or Hindu Undivided Families (HUFs) who are Resident Indians, below 60 years, with zero tax liability and total interest income below Rs. 2.5 lakh for FY 2023-24.

How to Open a Recurring Deposit Account in BOB?

Initiate an RD Account at BOB: Start a recurring deposit account online or offline.

Online Approach:

Available for BOB internet banking users. Log in, select the new RD account option, specify the installment, tenure, and linked account.

Offline Procedure:

Complete an application form from a BOB branch or online. Meet eligibility, provide required documents, and submit the application for RD account setup.

Opening a flexible RD account requires filling out the Yatha Shakti Jama Yojana form.

BOB RD interest rates highlight the appeal and safety of Recurring Deposits in India. Features like loans, quarterly/half-yearly options, and low minimum deposits enhance its attractiveness. Consider terms and conditions carefully before choosing.

How to Calculate the Maturity Amount on BOB Bank RD?

Determining BOB RD Interest:

Calculate RD interest using the formula A = P(1+r/n)^(nt), where 'A' is the final amount, 'P' is the principal, 'r' is the annual interest, 'n' is compounding frequency, and 't' is the time period.

Note: Use the Bank of Baroda RD Calculator to calculate interest earned on deposits.