If you’re looking for a safe and profitable investment, the amazing FD scheme of Bank of Baroda (BOB) could be just what you need. With interest rates climbing and inflation concerns on the rise, locking your money into a high-return fixed deposit is a smart move for both seasoned investors and cautious savers.
BOB’s Utsav Special Fixed Deposit Scheme is grabbing headlines—and rightly so. With an interest rate of up to 7.90%, you can earn a return of ₹35,000 or more on a ₹5 lakh investment. Let’s break down everything you need to know in a simple, easy-to-understand format.
Amazing FD Scheme of BOB: Invest and Get a Profit
| Feature | Details |
|---|---|
| Scheme Name | BOB Utsav Special Fixed Deposit |
| Interest Rate (General) | 7.30% per annum |
| Senior Citizens Rate | 7.80% per annum |
| Super Senior Citizens Rate | 7.90% per annum |
| Tenure | 400 Days |
| Minimum Deposit | ₹1,000 |
| Potential Profit (₹5L) | ~₹35,000 to ₹40,000 depending on age group |
| Tax Benefit | TDS applicable; No Section 80C unless under 5-Year Tax Saver FD |
The BOB Utsav Fixed Deposit scheme is more than just a place to park your money—it’s a smart financial move. With interest rates touching 7.90%, it’s ideal for those who want safe, predictable, and profitable returns over a short 400-day period.
Whether you’re a young investor or a retired professional, this FD strikes a perfect balance between growth and safety. You won’t need to worry about market volatility—and you can walk away with ₹35,000+ profit on a ₹5 lakh investment.
What is the BOB Utsav FD Scheme?
The Utsav Fixed Deposit Scheme is a special limited-period offer from Bank of Baroda (a public sector bank regulated by the RBI). It’s available to both new and existing customers, including senior citizens, who often receive higher interest rates.
Launched during festive seasons, the scheme is now extended due to strong demand. With rising FD rates across banks, BOB’s Utsav FD stands out for offering returns up to 7.90%—well above the national average.
see also: Post Office Scheme: If you deposit Rs. 36,000, you will get Rs. 9,76,370
How Does the FD Earn You ₹35,000 Profit?
Let’s do the math.
Example:
- Deposit Amount: ₹5,00,000
- Tenure: 400 days (~13.3 months)
- Interest Rate:
- 7.30% (General)
- 7.80% (Senior Citizens)
- 7.90% (Super Senior Citizens)
- Maturity Amount (approx):
- General: ₹5,37,000
- Senior Citizens: ₹5,39,500
- Super Seniors: ₹5,40,000
So, your profit = maturity amount – original deposit
Profit ≈ ₹35,000 to ₹40,000 in just over a year!
How to Open the BOB Utsav FD?
Step 1: Eligibility
- Indian resident (individuals, HUFs, senior citizens, minors with guardians)
- NRIs are also eligible via NRO deposits (different terms apply)
Step 2: Documents Required
- Aadhaar Card
- PAN Card
- Address Proof
- Passport-size photograph
- Existing BOB account details (if any)
Step 3: How to Apply
- Online via BOB NetBanking
- Mobile App: Download BOB World app
- Offline: Visit your nearest Bank of Baroda branch
Why Choose BOB’s Utsav FD Over Others?
Higher Interest Rates
Compared to other major banks like SBI (6.50%-7.10%) and HDFC (up to 7.75% for seniors), BOB offers better returns.
Government-Backed Safety
Bank of Baroda is a nationalized bank, regulated by the RBI, and offers DICGC insurance protection up to ₹5 lakh.
Short Tenure, High Returns
The 400-day term is ideal for short-term financial goals, offering a good balance between liquidity and profit.
Taxation on FD Returns
- TDS (Tax Deducted at Source) applies if yearly interest exceeds ₹40,000 (₹50,000 for seniors).
- If you’re a senior citizen and your total income is below taxable limits, submit Form 15H to avoid TDS.
- Not all FDs are tax-saving. Only 5-year Tax Saver FDs qualify under Section 80C.2
Who Should Invest in This FD?
This scheme suits a wide range of investors:
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Young Professionals
Start small, gain fixed returns. Safer than mutual funds or stocks if you’re risk-averse.
Senior Citizens
Enjoy extra 0.50% to 0.60% interest. Also, monthly interest payouts can provide regular income.
Families & Retirees
Secure your emergency fund while earning better than savings accounts (which offer ~3%).
Short-Term Goal Seekers
Saving for a vacation, wedding, or down payment next year? This scheme is ideal.
see also: Post Office RD Scheme Loan: Easy Financial Help at Low Interest Rate
Amazing FD Scheme of BOB FAQs
Q. Is the Utsav FD scheme available to NRIs?
Yes, but through NRO deposits only. Interest earned is subject to TDS and FEMA rules.
Q. Can I withdraw early?
Yes, but premature withdrawal will attract a penalty of 1% on the interest earned.
Q. Is this scheme better than a recurring deposit (RD)?
Yes, for one-time investors. RDs suit regular savers. FDs offer higher returns for lump sums.
Q. Is my money safe?
Absolutely. Bank of Baroda is a government-backed bank. Plus, deposits up to ₹5 lakh are insured by DICGC.
Q. How can I reinvest the interest?
You can choose cumulative FD (interest reinvested) or non-cumulative (monthly/quarterly payouts) depending on your need.
