Bank of Baroda Recurring Deposit Interest Rates

Bank of Baroda Recurring Deposit

Bank of Baroda Recurring Deposit

A Recurring Deposit (RD) is a safe and convenient way of saving money while also earning interest on it. An RD allows you to deposit a fixed amount on a regular basis with your bank, and it is similar to a Fixed Deposit (FD) in that you enjoy a higher rate of interest than a savings account for the same principal amount.

The main difference between an FD and an RD is that a recurring deposit allows you to make ongoing periodic investments in the deposit, whereas in a fixed deposit, you need to deposit the entire lump amount at the time you open the FD account. It is often recommended for starters to open an RD account as it inculcates a habit of savings.

Advantages to opening an RD account:

  • Interest Rate earned is generally equal to that of an FD
  • Safe and secure form of investment
  • Secure from fluctuations and volatility
  • Ideal for starters
  • Ideal for people who cannot deposit a large initial lump sum, but want to deposit small amounts on a regular basis
  • Can be opened with small minimum amount.
  • Lump sum received at maturity, including the interest
  • The rate of interest is higher as compared to an ordinary saving bank account
  • Flexible tenures to suit the budget of the individual
  • Loan / overdraft facility available with some banks.

Bank of Baroda Recurring Deposit

An RD in Bank of Baroda instills a habit of regular savings, where in you can invest a fixed amount every month for a fixed number of months. You can make these installments to a Bank of Baroda recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance.

Key Features of Bank of Baroda RD Account

  • Allows you to safely deposit small amount of money on a regular basis rather than a bulky one-time payment at opening of the RD.
  • Is a basic saving plan, which helps you regulate savings and reap its benefits by way of interest money.
  • Ideal for people with a regular, steady income who may not be able to spare enough money for the minimum amount to open an FD.
  • Flexible tenure – you can choose tenures which can range from a few months to several years depending on your financial goal
  • Attractive interest rates: Offers a higher rate of interest than a savings bank account—similar to an FD—but with a smaller ongoing investment.
  • Quick liquidity options and access to your funds in times of need

Types of Recurring Deposits Offered by Bank of Baroda:

Regular Recurring Deposit:

  • Minimum amount required to open an account in rural and semi-rural branches: Rs. 50 and Rs. 100 in Urban and Metro branches
  • Period of RD: 6 months to 120 months
  • Preferential interest rate for senior citizens
  • TDS on Interest is applicable
  • Nomination facility available
  • Premature Closure of RD Allowed
  • Avail up to 95% of the deposit amount by way of loan/overdraft.

Bank of Baroda Recurring Deposit Interest Rates

Bank of Baroda RD interest rates are similar to rates offered for FD accounts. You can get the best rates for a Bank of Baroda Recurring Deposit by investing in any of its RD schemes. Following is an overview of Bank of Baroda RD interest rates including Bank of Baroda Short-Term RD Interest Rates. For the latest and accurate RD interest rates in BOB, it is advisable to check with the bank directly.

Bank of Baroda recurring deposit interest rates 2015 – 2016

The current RD Interest rate ranges from 6% to 7% for normal Indian residents including minors and HUF. It is advisable to contact the bank directly for the revised and up to date interest rates as they fluctuate on a regular basis.

Bank of Baroda Senior Citizen RD Interest Rates

Senior citizens enjoy preferential rates, i.e., 0.50% more on the interest rate as applicable for normal customers. For the latest revised or updated interest rates, it is advisable to contact the bank directly.

How to apply for an RD in Bank of Baroda:

You can visit your nearest BOB branch and have a bank representative help you with the application process

Bank of Baroda Recurring Deposit Calculator:

You can make use of any trusty online RD Calculator to compute the interest and the maturity earned on your invested amount. Using an RD Calculator is easy—you need to enter the installment amount you want to invest monthly, the duration, the interest rate, method of compounding (monthly, quarterly, half-yearly or annually) and the calculator will provide the maturity amount that you get at the time of maturity of the Recurring Deposit. Using an RD calculator helps you find out how much you need to save. You can try various amounts and opt for the one that helps achieve your financial goal and suits your budget.

Bank of Baroda RD FAQs

What is the minimum and maximum amount required to open an RD with Bank of Baroda?

The minimum opening balance for a regular recurring deposit with Bank of Baroda is Rs. 50 in rural and semi-urban branches and Rs. 100 in Urban and metro branches.

What is the minimum deposit period?

The minimum deposit tenure is 6 months and can go up to as high as 120 months.

How do I apply for a regular recurring deposit?

If you are a new customer, you can start with opening a savings account with Bank of Baroda, which in turn can be linked with an RD account.

Alternately, you can visit your nearest branch and submit the Deposit Account form and have a customer executive help you with the whole process.

What is the documentation required to open an RD account?

You will require the following documents:

  • Filled-in application form
  • Passport size photograph
  • Proof of residence, PAN Card, ID Proof
  • An introduction by an existing customer as per Bank's norms
  • Any other KYC documents as required by the bank