Bank of Baroda, one of India’s leading public sector banks, offers its customers various recurring deposit (RD) accounts that are designed to promote small savings. The following are some key features of the Bank of Baroda Recurring Deposit*:
| Bank of Baroda Recurring Deposit | |
| Deposit Amount | Minimum Rs. 50 per month (rural and semi-urban)
Minimum Rs. 1000 per month (urban) No Maximum Amount Equal Amount to be deposited every month |
| Tenure | Minimum 6 months
Maximum 10 years (120 months) |
| Interest Rate | Minimum – 5.75% per annum
Maximum – 7.35% per annum |
| Senior Citizen Interest Rate | 0.50% higher than RD interest rate for general public BoB RD account |
| Interest Payout | Balance in RD account compounded quarterly and payout of interest occurs after maturity |
*The features of Bank of Baroda recurring deposit are liable to change periodically.
Bank of Baroda RD Rates 2019
The following are the Bank of Baroda RD Rates 2019 over various tenures*:
| RD Time Period | RD Interest Rate (General Public) | RD Interest Rate (Senior Citizens) |
| 180 days | 5.75% | 6.25% |
| 181 to 270 days | 6.50% | 7.00% |
| 271 days to less than 365 days | 6.50% | 7.00% |
| 1 year | 6.70% | 7.20% |
| Over 1 year to 400 days | 6.85% | 7.35% |
| 401 days to 2 years | 6.80% | 7.30% |
| Over 2 years to 3 years | 6.70% | 7.20% |
| Over 3 years to 5 years | 6.70% | 7.20% |
| Over 5 years to 10 years | 6.70% | 7.20% |
*Interest Rates updated as of 15/02/19.
Key Features of Additional Types of Bank of Baroda RD
Apart from the Bank of Baroda RD, customers of the bank can avail additional types of recurring deposits on offer. The following are the key features of additional types of RD offered by Bank of Baroda:
| Baroda Samriddhi Quarterly Recurring Deposit | |
| Deposit Interval | Quarterly (every 3 months) |
| Loan/Overdraft Option | Up to 95% of RD amount at the time of application |
| Deposit Amount | Minimum Rs. 500 per quarter, no maximum limit |
| Tenure | Minimum 36 months, Maximum 120 months |
| Interest Payout | Deposit compounded annually and paid out at maturity |
| Baroda Samriddhi Half Yearly Recurring Deposit | |
| Deposit Interval | Half Yearly (every 6 months) |
| Loan/Overdraft Option | Up to 95% of RD account balance at the time of application |
| Deposit Amount | Minimum Rs. 1000 every 6 months, no maximum limit |
| Tenure | Minimum 36 months, Maximum 120 months |
| Interest Payout | Quarterly compounding with pay out after a/c maturity |
| BoB Flexible Recurring Deposit Scheme – Yatha Shakti Jama Yojna | |
| Deposit Interval | Monthly |
| Loan/Overdraft Option | Up to 95% of outstanding balance |
| Deposit Amount | Minimum Rs. 100 per month, Maximum Rs. 10,000 per month |
| Tenure | Minimum 12 months, Maximum 120 months |
| Interest Payout | Interest computed on daily balance. Interest paid and credited twice a year in March and September. |
Bank of Baroda Recurring Deposit Eligibility Criteria
Various individuals and organisations/institutions can open a recurring deposit account with Bank of Baroda, such as:
- Individuals (jointly or sole operated account)
- Guardian on behalf of minor (10 years or older)
- Hindu Undivided Family (HUF)
- Registered Clubs
- Registered Joint stock Companies
- Registered Associations
- Registered Partnerships, etc.
Bank of Baroda RD Application Form
A recurring deposit account opening form can be obtained either from a Bank of Baroda branch or downloaded from the Bank of Baroda official website. Separate forms are currently available online for opening a Bank of Baroda recurring deposit and a Yatha Shakti Jama Yojna deposit. The following are the links to these BoB RD application forms:
Documents Required for Opening Bank of Baroda RD
Key documents that need to be submitted along with the applicable RD application form when opening a Bank of Baroda recurring deposit are:
- Proof of identity and address such as Aadhaar, Driver’s Licence, etc. as per KYC norms
- PAN Card, if depositor does not have PAN, then Form 60 / Form 61
- 2 photos of primary depositor(s)
- Additional documents as per requirements of RD for HUF, company, trust, etc.
Premature withdrawal Penalty for Bank of Baroda RD
Premature withdrawal is allowed in case of a Bank of Baroda recurring deposit after applicable penalties are charged. At present, such penalties equal 1% deducted from the lower rate between the applicable interest rate for the period prior to premature withdrawal or the contracted rate applicable to the RD account.
Bank of Baroda Loan against Recurring Deposit
Depositors have the option of obtaining a loan against Bank of Baroda RD account balance. The loan corpus is up to 95% of the recurring deposit balance calculated at the time of loan against BoB RD application. The interest rate charged for a Bank of Baroda loan against RD is determined based on the bank’s applicable internal guidelines.
Taxation of Bank of Baroda Recurring Deposit
Interest earnings from a Bank of Baroda RD are taxable and TDS may be deducted at 10% of interest payout id RD interest earned is more than Rs. 10,000 for the fiscal. With effect from AY 2020-21 TDS deductions on interest earned will be applicable if interest earnings for a fiscal exceed Rs. 40,000. Additionally, income from BoB RD interest has to be disclosed by the depositor when filing tax returns which is subsequently taxed at the applicable slab rate.