Bank of Baroda (BOB) is an Indian banking and financial services organization headquartered at Vadodara, Gujarat. Bank of Baroda is the second largest bank in the country and is among the Big Four Banks of India. Being a nationalized bank, it is held in high esteem and trusted by customers across the nation. Founded in the year 1908, the bank attained the status of a nationalized bank in 1969. The bank has an extensive network of branches spanning the entire country.
Bank of Baroda Fixed Deposit
Bank of Baroda offers a host of fixed deposit plans to suit the varying customer need and requirements. Open a Bank of Baroda fixed deposit with a low investment amount of Rs. 1000 only and get the best rate of return on fixed deposit.
Fixed Deposit interest rates scheme offered by Bank of Baroda are:
1.Short term deposits up to 12 months:
- Short Deposits
2. Long-term deposits above 12 months:
- Baroda Advantage fixed deposits
- Term Deposits
- Baroda Maha Utsav Deposit Scheme
- Fast Access Deposit Scheme
- BOB Suvidha Fixed Deposit Scheme
- Monthly Income Plan
- Regular Income Plan
- Regular Income Cum Recurring Deposit
- Capital Gain Account Scheme, 1988
- Baroda Tax Savings Term Deposit
- Baroda Double Dhamaka Fixed Deposit
There are no specific eligibility criteria for opening a BOB fixed deposit. The applicant just requires to have a proper introduction and submit the requisite documents along with the application form. All individuals and HUFs are eligible to open a BOB fixed deposit.
The minimum amount with which you can open a short-term Fixed Deposit with the Bank is Rs. 1000 for a period of 15 days and above. The maximum amount is Rs. 25 crores.
Interest Rate for Deposits
Fixed deposits (FD) are term deposits wherein one can make a one-time investment for a fixed time-period and at a fixed interest rate. When you invest a certain amount in an FD, the sum of money gets locked for that time-period and you can earn interest on it at a rate of interest. This interest rate does not change for the entire tenure of the fixed deposit, even if any changes are made in the lending interest rates during the FD tenure. The interest rate for deposits is set by the Bank according to the standard interest rates of the Reserve Bank of India.
The rate of return on fixed deposit will depend on a number of factors, such as:
- Investment amount: The amount invested at once is the amount of investment. Every Bank has a minimum and maximum limit for the investment amount.
- Tenure of investment: It is the time-period for which the investment is made. The usual tenure of an FD ranges between 7 days to 10 years.
- The interest rate offered: The interest rate or the fixed deposit rates is the rate at which you earn interest on the deposited amount. This rate of interest remains the same for the entire tenure.
BOB FD Interest Rates
Bank of Baroda fixed deposit rates vary with the invested amount and time-period of deposit. The Bank of Baroda FD rate also varies in case of the different schemes offered by the Bank. Also, the fixed deposit rates are different for the short, medium and long-term deposits. For example, fixed deposits of 6 months will earn interest at a lower interest rate as compared to long-term deposits.
Bank of Baroda short-term Fixed Deposit Rates- (below 1 crore deposit)
- For the time period of 7 days up to 45 days – 4.50% p.a.
- For a time period of 46 days to 180 days – 6.50% p.a.
- For a time period of 181 days to 1 year – 7.30% p.a.
Bank of Baroda medium-term Fixed Deposit Rates- (below 1 crore deposit)
- For the time period of 1 year to 5 years – 7.30% p.a.
Bank of Baroda long-term Fixed Deposit Rates- (below 1 crore deposit)
- For the time period of 5 years to 10 years – 7.30% p.a.
- Enjoy the best rates for Bank of Baroda fixed deposit with the Baroda Double Dhamaka Fixed Deposit scheme.
Senior Citizens can Enjoy Higher Fixed Deposit Rates
An extra interest of 0.50% on the Term Deposits in addition to the applicable interest rate is offered to senior citizens who have completed the age of 60 years.
Payment of Interest on Fixed Deposits
The interest that is accumulated on a fixed deposit is usually paid upon maturity or end of the deposit tenure. However, interest can be paid before maturity only on deposits of 12 months and above and upon the request of the depositor. The interest can be paid monthly, quarterly or half yearly on completion of the month or quarter or half year. This is calculated from the date of deposit or end of each calendar month or quarter or half year, whichever is later.
Factors that affect Fixed Deposit Rates:
- Reserve Bank of India (RBI) – RBI controls the monetary policy of India according to the economic conditions prevailing in the country. To achieve proper flow of funds in the market, RBI puts restrictions on the interest rates of different financial products. When RBI expands liquidity or releases cash in the market, interest rates get reduced leading to higher inflation. However, when RBI seizes or lowers money supply, the interest rates increase leading to control on inflation.
- Recession- Recession implies slowdown of the economy. During an economic slowdown, RBI releases money in the market by decreasing the interest rate on the cash stock in the bank. Thus, the interest rates of the deposits get lowered.
- Inflation- Inflation is a price hike, which can lead to devaluation of the currency and reduction of purchasing power over lent amount. Therefore to make up for the loss in interest of given loans, banks give higher rates on term deposits.
- Economy- The prevailing economic condition of the country is another factor which determines the return rates of deposits. Banks give attractive interest rates on FD when there is high credit demand to attract more cash in order to satisfy the rising credit demand.