Latest Bank of Baroda FD Interest Rate April 2023
Bank of Baroda (BOB) FD rates vary from 3.00% to 7.05% (for deposits below Rs.2 crore) for the general public and 3.5% to 7.55% for senior citizens (for deposits below Rs.2 crore). The deposit tenure ranges from 7 days to 10 years. Bank of Baroda also offers tax-saving fixed deposit schemes that have a minimum lock-in period of 5 years and a maximum tenure of 10 years. BOB FD interest rates for such schemes are 6.5% for the general public and 7.50% for senior citizens.
There are several other Bank of Baroda fixed deposit schemes such as the Baroda Tiranga Plus Deposit Scheme, Baroda Suvidha Flexible Fixed Deposit Scheme, Baroda Tax Saving Fixed Deposit Account, etc. This bank also offers term deposits for NRIs, which include NRE, NRO and FCNR(B) deposit schemes.
Bank of Baroda (BOB) FD Rates 2023 Highlights
| Interest Rate | 3% – 7.05%** |
| Tenure | 7 days- 10 years (more than 10 years for some schemes) |
| Minimum Deposit | ₹1,000 |
| Maximum Deposit | No Upper Limit |
| Lock-in Period | NA (5 years for tax-saving deposits) |
**For deposits below Rs.2 crore
How to Calculate BOB FD Interest Rate?
There are two ways of calculating interest on fixed deposits, one is the simple interest method and another is the compound interest method. Simple interest denotes the interest earned on a principal amount that is invested at a predetermined interest rate throughout a particular investment tenure.
Calculate BOB FD Interest Rate – Simple Interest
The formula used for calculating simple interest is given below:
Simple Interest= (P x R x T)/100, where
- P= Principal Amount Invested
- R= Rate of Interest (%)
- T= Tenure
Let us assume that you have invested ₹ 1,00,000 for a tenure of 5 years at a 10% p.a. interest rate. Thus, here P = ₹1 lakh, R= 10 % and T = 5 years.
Thus,
Simple Interest = (1,00,000 x 10 x 5)/ 100 = ₹50,000
Maturity Value = Principal Amount + Simple Interest = ₹1,00,000 + ₹50,000 = ₹1,50,000
Thus, at the time of maturity of your fixed deposit, you will get ₹ 1,50,000 on an investment of ₹1,00,000, which brings you returns of ₹50,000.
Calculate BOB FD Interest Rate – Compound Interest
Another procedure to calculate FD interest is the compound interest method. Compound interest refers to the interest earned on the combined and accruing interest and principal amount. Thus, in compound interest calculation, the interest you earn periodically gets added to the principal amount and the subsequent interest is calculated on this total amount. Over time, it leads to higher returns.
This is the formula used for compound interest calculation:
A = P (1+r/n)nt, where
- A = Maturity amount
- P = Principal amount invested
- r = Rate of interest
- n = Number of compounding in a year
- t = Number of years
Let us say that you have invested ₹1,00,000 for 5 years at an interest rate of 10% p.a. compounded quarterly.
Thus, here P = ₹ 1,00,000, r = 10 %, n = 4, that is, 1 every quarter and t = 10 years
Maturity Amount = 1,00,000 (1+0.1/4) ^ (4 x 5)
A = Maturity Amount = ₹1,63,862
Therefore, interest amount is = ₹1,63,862 – ₹1,00,000 = ₹63,862
Factors that Can Affect BOB Fixed Deposit Rate
There are several factors which can affect the Bank of Baroda’s interest rates. Some of the factors depend on your investment plan while there are others depending on the bank’s new policies. Here are some of the significant factors affecting interest rates:
1. FD Tenure
BOB FD interest rate varies based on the tenure. A long-term FD deposit may offer higher rates than let’s say a deposit of 100 – 150 days.
2. Age
A higher interest rate is offered on fixed deposits for senior citizens. They can get between 0.25% to 0.75% higher interest rates on fixed deposits than others. BOB offers 0.50% to 1% higher FD rates to senior citizens.
3. Economic Policy
The prevailing economic conditions along with the monetary and fiscal policy of India have a major impact on the interest rates of fixed deposits.
4. Deposit Amount
The interest rate may also vary depending on the deposit amount. For instance, deposits below ₹2 crore will have different rates of interest than deposits above ₹2 crore.
BOB FD Interest Rate for General Public
Bank of Baroda provides different FD rates for term deposits based on tenure and the amount of a deposit. BOB FD interest rate varies between 3% and 7.05% for FDs below ₹2 crore, depending on the tenure. For deposits above ₹ 2 crore, you can earn interest of 7.70%.
Bank of Baroda FD interest rates for 2023 are given in the table below:
| Tenure | Interest on Deposits Below ₹2 Crore | Interest on Deposit Above ₹2 Crore |
| 7 days to 14 days | 3% | 4% |
| 15 days to 45 days | 3% | 4.5% |
| 46 days to 90 days | 4.5% | 5.25% |
| 91 days to 180 days | 4.5% | 5% |
| 181 days to 210 days | 5.25% | 5% |
| 211 days to 270 days | 5.75% | 5% |
| 271 days & above andless than 1 year | 5.75% | 6% |
| 1 year | 6.75% | 7.7% |
| Above 1 year to 400 days | 6.75% | 6.25% |
| Above 400 days and up to 2 years | 6.75% | 6.25% |
| Above 2 Years and up to 3 Years | 6.75% | 6% |
| Above 3 Years and up to 5 Years | 6.50% | 5.25% |
| Above 5 Years and up to 10 Years | 6.50% | 5% |
| Above 10 years (MACT/MACADCourt Order schemes only) | 6.25% | – |
| 399 Days (Baroda Tiranga Plus Deposit Scheme) | 7.05% |
Bank of Baroda FD Rates for Senior Citizens
Bank of Baroda offers a higher interest rate for citizens on their fixed deposits. Given in the table below are Bank of Baroda FD rates for senior citizens:
| Tenure | Interest on Deposits Below ₹ 2 Crore | Interest on Deposit Above ₹ 2 Crore |
| 7 days to 14 days | 3.5%* | 4% |
| 15 days to 45 days | 3.5%* | 4.5% |
| 46 days to 90 days | 5%* | 5.25% |
| 91 days to 180 days | 5%* | 5% |
| 181 days to 210 days | 5.75 %* | 5% |
| 211 days to 270 days | 6.25 %* | 5% |
| 271 days & above andless than 1 year | 6.25%* | 6% |
| 1 year | 7.25%* | 7.5% |
| Above 1 year to 400 days | 7.25%* | 6.25% |
| Above 400 days and upto 2 Years | 7. 25%* | 6.25% |
| Above 2 Years and upto 3 Years | 7.25%* | 6% |
| Above 3 Years and upto 5 Years | 7.15%# | 5.25% |
| Above 5 Years and upto 10 Years | 7.50 %*** | 5% |
| Above 10 years (MACT/MACADCourt Order schemes only) | 6.75 %* | – |
| 399 Days (Baroda Tiranga Plus Deposit Scheme) | 7.55% | – |
#Including additional ROI 0.5+0.15
***Including additional ROI of 0.50%+0.50%
*Note that rates are subject to change without prior notice
Bank of Baroda Deposit Rates for NRI
There are several Bank of Baroda fixed deposits available for NRIs (Non-resident Indians). An NRI can deposit an amount of their choice, given it is more than the minimum amount that has to be deposited and earn interest on it. The different types of FD NRI accounts offered by the Bank of Baroda are:
- NRO Fixed Deposit Account
- NRE Fixed Deposit Account
- FCNR(B) Account (Foreign Currency Non-Resident Account)
1. Bank of Baroda NRO FD Rates
NRO (Non-Resident Ordinary), refers to an account which allows NRIs to manage their income received in India in Rupees. The BOB NRO deposit account helps NRIs deposit the income earned in India, from sources such as pension payments, rent and dividends. Bank of Baroda offers up to 7.5% interest on their NRO FDs. Here are the interest rates offered for NRO fixed deposits:
| Tenure | Interest on Deposits Below ₹ 2 Crore | Interest on Deposit Above ₹ 2 crore |
| 7 days to 14 days | 3% | 4% |
| 15 days to 45 days | 3% | 4.5% |
| 46 days to 90 days | 4.5% | 5.25% |
| 91 days to 180 days | 4.5% | 5% |
| 181 days to 210 days | 5.2 % | 5% |
| 211 days to 270 days | 5.75% | 5% |
| 271 days & above andless than 1 year | 5.75% | 6% |
| 1 year | 6.75% | 7.5% |
| Above 1 year to 400 days | 6.75% | 6.25% |
| Above 400 days and up to 2 Years | 6.75% | 6.25% |
| Above 2 Years and up to 3 Years | 6.75% | 6% |
| Above 3 Years and up to 5 Years | 6.50% | 5.25% |
| Above 5 Years and up to 10 Years | 6.50% | 5 |
| Above 10 years (MACT/MACADCourt Order schemes only) | 6.25% | – |
2. Bank of Baroda NRE FD Rates
NRE or Non-Resident External is an account which allows all non-resident Indians (NRIs) to hold their overseas earnings in India in Rupees. NRE FDs are tax-exempt and fully repatriable, i.e., they do not have any upper limit for money transfers. NRIs can get up to 7.75% interest from their BOB NRE FDs. Given in the table below are the Bank of Baroda NRE FD rates:
| Tenure | Interest on Deposits Below ₹ 2 crore | Interest on Deposits Above ₹ 2 crore |
| 1 year | 6.75% | 7.75% |
| Above 1 year to 400 days | 6.75% | 6.25% |
| Above 400 days and upto 2 years | 6.75% | 6.25% |
| Above 2 years and upto 3 years | 6.75% | 6% |
| Above 3 years and upto 5 years | 6.5% | 5.25% |
| Above 5 years and upto 10 years | 6.5% | 5% |
3. Bank of Baroda FCNR(B) Interest Rates
FCNR or Foreign Currency Non-Resident account refers to one that allows NRIs to hold their foreign currency deposits in India. It enables NRIs to deposit their foreign earnings in a foreign currency, which then is converted into Indian rupees at the prevailing exchange rate. NRIs can get up to 5% p.a interest on their FCNR deposits. Here are the BOB FD interest rates on FCNR(B) deposit accounts:
| Tenure | USD | Euro | CAD | AUD | GBP |
| 1 year to less than 2 years | 5% | 1.5% | 4.3% | 3.6% | 4.25% |
| 2 years to less than 3 years | 3.95% | 1.5% | 4.1% | 3.5% | 2.35% |
| 3 years to less than 4 years | 3.8% | 1.5% | 3.85% | 3% | 2.45% |
| 4 years to less than 5 years | 3.85% | 1.5% | 3.7% | 3% | 2.45% |
| 5 years | 3.9% | 1.5% | 3.6% | 3% | 2.45% |
BOB RFC Interest Rate
Bank of Baroda vs Other Banks’ FD Interest Rate
Given here in the table below is a comparison between the tenure and interest rates of different banks:
Features and Benefits of BOB Fixed Deposit
Some of the features and benefits of BOB FD are as follows:
- The minimum amount that you can deposit is ₹1,000, which can be increased in multiples of ₹100
- The minimum income limit for deducting TDS is ₹10,000. If your income is less than that amount, that is, if it falls in the no tax limit, you can fill out form 15G/15H with the bank and no TDS will be deducted
- Senior citizens are eligible 0.5% additional interest on their term deposits
- You can choose a period between 7 days for up to 10 years.
- Bank of Baroda fixed deposit comes with a nomination facility
Also Read
Different Types of BOB FD Schemes
Bank of Baroda offers various FD schemes for Indian citizens residing in India as well as NRIs. Each of these schemes is designed with a different purpose. The different types of FD schemes that BOB has to offer are given below:
- Baroda Tiranga Plus Deposit Scheme
- Baroda Tax Saving Fixed Deposit Account
- Baroda Suvidha Flexible Fixed Deposit Scheme
- Monthly Income Plan (MIP)
- Motor Accident Claims Annuity Deposit (MACAD)
- Quarterly Income Plan (QIP)
- Baroda Regular Income cum Recurring Deposit (RRID)
- Baroda Short Term Deposits
- Baroda Advantage Fixed Deposits (non-callable)
1. Baroda Tiranga Plus Deposit Scheme
- Minimum deposit: ₹1,000
- Maximum deposit: No upper limit
- Tenure: 399 days
- Interest rate: 7.05 % to 7.55 %
- Eligibility criteria: Any individual, jointly by more than one individual, or in the name of clubs, associations, partnerships or joint stock companies
2. Baroda Tax Saving Fixed Deposit Account
- Minimum deposit: ₹100
- Maximum deposit: ₹1,50,000
- Tenure: 5 years to 10 years
- Interest rate: Prevailing interest rate
- Eligibility: All Indian citizens including HUFs
3. Baroda Suvidha Flexible Fixed Deposit Scheme
- Minimum deposit: ₹5000.
- Maximum deposit: No upper limit
- Tenure: 12 months to 5 years
- Interest rate: Prevailing rate of interest
- Eligibility: Any individual including minors in single or joint names, HUF, partnership firms, public or private limited companies, trusts, associations or registered societies.
4. Monthly Income Plan (MIP)]
- Minimum deposit: ₹ 1000
- Maximum deposit: No upper limit
- Tenure: 1 year to 10 years
- Interest rate: As per the maturity period of the deposit
- Eligibility: An individual in his/her own name, by more than one individual jointly, minor of age 10 and above, clubs, associations, educational institutions, partnerships or joint stock companies.
5. Motor Accident Claims Annuity Deposit (MACAD)
- Minimum deposit: Monthly annuity of ₹1000 for the relevant period
- Maximum deposit: No limit
- Tenure: 3 years to 10 years
- Interest rate: Prevailing rate as per the tenure
- Eligibility: Individuals including minors through guardian
6. Quarterly Income Plan (QIP)
- Minimum deposit: ₹ 1000
- Maximum deposit: No upper limit
- Tenure: 1 year to 10 years
- Interest rate: As per the maturity period
- Eligibility: An individual in his/her own name, by more than one individual jointly, minor of age 10 and above, clubs, educational institutions, associations, partnerships or joint stock companies.
7. Baroda Regular Income cum Recurring Deposit (RIRD)
- Minimum deposit: ₹ 1000
- Maximum deposit: No upper limit
- Tenure: 1 year to 10 years
- Interest rate: As per the maturity period
- Eligibility: An individual in his/her own name, by more than one individual jointly, minor of age 10 and above, clubs, educational institutions, associations, partnerships or joint stock companies.
8. Baroda Short Term Deposits
- Minimum deposit: ₹ 1000
- Maximum deposit: No upper limit
- Tenure: Minimum 7 days
- Interest rate: As per the maturity period
- Eligibility: An individual in his/her own name, by more than one individual jointly, minor of age 10 and above, clubs, educational institutions, associations, partnerships or joint stock companies.
9. Baroda Advantage Fixed Deposits (non-callable)
- Minimum deposit: ₹ 15,01,000
- Maximum deposit: No upper limit (for NRE- below ₹2 crore)
- Tenure: 1 year to 10 years
- Interest: Preferential rate of interest as per circular
- Eligibility: Individuals residing in India, NRIs, PIO, jointly by more than one individual, minors above the age of 14, HNIs, clubs, educational institutions, associations, partnerships, joint stock companies, cooperative banks or Grameen banks.
How to Invest in BOB Fixed Deposit?
You can open a fixed deposit account in the same way as a savings bank account. You can open an FD account through internet banking or by visiting the bank branch. Follow these steps to open a BOB fixed deposit account online:
- Step 1: Visit the online portal of the Bank of Baroda.
- Step 2: Put in your login credentials to log in to your net banking account.
- Step 3: Choose the option “Fixed Deposit” from the menu.
- Step 4: Select in which FD scheme you want to make an investment from the options given there.
- Step 5: Enter the amount which you would like to invest as a fixed deposit.
- Step 6: Choose the tenure and frequency of interest payout. Also, select the relevant option if you are a senior citizen.
- Step 7: Click on the submit button.
Documents Required for Opening BOB FD
For opening a BOB FD account, you will need the following documents:
1. Identity Proof
Permanent Account Number (PAN) card, Voter ID card, Aadhaar card, passport, driving licence with photograph, job card issued by NREGA (National Rural Employment Guarantee Act, 2005) attested by a government official.
2. Address Proof
Aadhaar card, driving licence with photograph, voter ID card, passport, PAN card, job card issued by NREGA and attested by a government official.
Eligibility to Open BOB Fixed Deposit
You may need to meet the following eligibility criteria to open a BOB FD account:
- Age: 18 years and above (minors are eligible if accompanied by guardian)
- Eligibility: Indian resident (NRIs can open separate term deposit account with BOB)
- HUF (Hindu Undivided Families)
- Limited Companies
- Trust Accounts
- Partnership Firms
- Sole Proprietorship Firms
Taxation on BOB FD
- Since interest from fixed deposits falls under “income from other sources”, it is subject to taxation according to your income tax slab.
- Banks further deduct TDS every year if the interest earned from FDs exceeds ₹40,000 every financial year (₹50,000 for senior citizens).
- For getting an exemption from tax deduction as per IT Rules, you will have to submit Form 15G/15H.
- If you withdraw your fixed deposit before the maturity date, the interest that you will earn from such premature withdrawal will also be subject to taxation as per your income tax slab.
However, with Baroda Tax Saving Fixed Deposit Account, you can claim a tax deduction of up to ₹ 1,50,000 in a financial year.
Loan Against BOB FD Scheme
Another major advantage of having a fixed deposit account in the Bank of Baroda is that you can get a loan against your BOB FD account, without having to resort to the hassle of applying for a personal loan. Here are the key features and benefits of this facility:
- Bank of India fixed deposits allow loans/overdrafts of up to 95% of the outstanding amount.
- The interest rate will depend on the bank’s prevailing rates at the time.
- You can also get a loan against non-resident FDs.
- Non-resident accounts are converted into resident accounts on the return of the account holder to India using the loan facility.
- No processing fee will be charged on a loan against a BOB FD account.
- There is no maximum loan limit
- There are no prepayment charges.
- The tenure can be anything till the maturity period of the fixed deposit.
- You will need to furnish only KYC documents like a voter card, PAN card, Aadhaar card, and driving licence. You will also have to provide a document of the fixed deposit like a Fixed Deposit receipt or a Short Deposit Receipt.
- You have to repay the loan in a lump sum.
Final Word
Before investing in Bank of Baroda fixed deposit schemes, you should go through all the terms and conditions associated with the scheme. Also, try to look for a tenure that offers the best interest of Bank of Baroda FDs. The interest rate for senior citizens is higher, so you can open an FD account in your parent’s name.
Looking for other-tax saving instruments? You can consider investing in Navi ELSS Tax Saver Nifty 50 Index Fund with Navi Mutual Fund and claim tax deduction benefits of up to Rs.1.5 lakh today. Download the Navi app, explore funds and start investing.
FAQs
Baroda short-term deposits are ideal investment options for those thinking about parking their funds for the short term. For this, you will need to make a minimum investment of ₹1,000.
Bank of Baroda offers MACAD FD which stands for Motor Accident Claims Annuity Deposit. This scheme aims to help the claimants of victims of road accidents to deposit the funds received as part of the orders of the court and receive the same as an annuity. The returns will comprise the principal deposited amount as well as the interest.
If you are not a senior citizen, you can get a maximum interest rate of 6.75% interest if you make a fixed deposit of ₹1 lakh for 1 year as per the current interest rates of the Bank of Baroda. This will get you a total interest of ₹6,923.
Bank of Baroda has a host of fixed deposit schemes for NRIs. These include NRE, NRO and FCNR(B) accounts. Each of these accounts serves a specific purpose. Based on that, the returns will also vary.
Callable fixed deposits are those deposits which can be prematurely withdrawn by an individual. However, non-callable fixed deposits cannot be withdrawn before the maturity period.
Baroda Tiranga Plus Deposit Scheme is a special term deposit product offered by the Bank of Baroda. It is a 399-day deposit scheme, which offers a high rate of interest for Indian residents as well as NRIs.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
