If you’re planning to invest safely and earn a guaranteed return, the Bank of Baroda FD scheme could be a smart move. Right now, investors are excited about an opportunity where you can earn ₹51,050 interest on a ₹2 lakh investment. But how does it work? What’s the catch? And who exactly qualifies?
Bank of Baroda FD Scheme
| Feature | Details |
|---|---|
| Scheme Name | Bank of Baroda Fixed Deposit (bob Square Drive Deposit) |
| Investment Amount | ₹2,00,000 |
| Interest Earned | Up to ₹51,050 (depending on tenure and compounding) |
| Best Interest Rate | Up to 7.75% p.a. for super senior citizens |
| Special Tenure Option | 444 days (bob Square Drive) |
| Minimum Deposit | ₹1,000 |
| Maximum Tenure | Up to 10 years |
If you want a safe, secure, and guaranteed return, the Bank of Baroda FD Scheme is a top contender. Earning ₹51,050 on ₹2 lakh is completely possible if you choose the right tenure and rate—especially if you’re a senior citizen.
With multiple options like the bob Square Drive Deposit (444 days) and long-term FDs, there’s something for everyone. Just be sure to compare, calculate, and invest smartly.
What Is the Bank of Baroda FD Scheme?
A Fixed Deposit (FD) is a safe investment option where you deposit money with a bank for a fixed time and earn guaranteed interest. Bank of Baroda offers several FD options with attractive rates, especially after the latest RBI repo rate hikes.
As of April 2025, Bank of Baroda’s FD schemes provide returns ranging from 4.25% to 7.75%, depending on the tenure and age of the investor.
To achieve the ₹51,050 return on ₹2 lakh, you’ll need to invest wisely, either for a longer period or under special schemes.
see also: SBI’s Second Scheme Offers Higher Interest Than Amrit Kalash FD
How to Get ₹51,050 Interest on ₹2 Lakh
Let’s break it down:
Option 1: Long-Term FD (5 Years or More)
- Amount Invested: ₹2,00,000
- Interest Rate: 7.25% (Regular) / 7.75% (Senior)
- Tenure: 5 years
- Maturity Amount: Around ₹2,51,050
This gives you a total interest of ₹51,050. That’s the figure making headlines.
Note: This calculation assumes cumulative interest with annual compounding.
Key Point: The interest earned is guaranteed and does not fluctuate with market risks.
Special Rates for Senior and Super Senior Citizens
Bank of Baroda offers extra interest for older customers:
| Age Group | Additional Interest |
|---|---|
| 60–80 years (Senior Citizens) | +0.50% p.a. |
| 80+ years (Super Senior Citizens) | +0.65% p.a. |
So, if you’re over 80, you could earn up to 7.75% on your deposit—higher than many competing banks.
These rates beat several small finance banks and NBFC FDs in terms of trust, stability, and return.
Spotlight: bob Square Drive Deposit – 444 Days Special Scheme
To celebrate the cricket season, Bank of Baroda introduced the bob Square Drive Deposit on April 7, 2025. It offers higher-than-usual interest for a fixed 444-day tenure:
- General Citizens: 7.15%
- Senior Citizens: 7.65%
- Super Senior Citizens: 7.75%
This is ideal for those looking for medium-term investment with better returns.
Example:
Investing ₹2 lakh for 444 days at 7.65% would yield approx. ₹18,600 in interest.
Features and Benefits of Bank of Baroda FD
Safe and Regulated
Bank of Baroda is a public sector bank, backed by the Government of India. Your deposits are insured up to ₹5 lakh by DICGC.
Flexible Tenures
FD tenures range from 7 days to 10 years, offering full flexibility.
Multiple Payout Options
You can choose from:
RBI New Rules 2025: Full Guidelines, Impact on Banks and Customers, and What You Should Do Now
- Cumulative FDs (interest paid at maturity)
- Non-cumulative FDs (monthly, quarterly, half-yearly payouts)
Premature Withdrawal
Allowed, but a small penalty of 0.50% to 1.00% may apply depending on how early you break it.
Step-by-Step: How to Open a Bank of Baroda FD
Step 1: Choose Tenure & Amount
Decide how much you want to invest (minimum ₹1,000) and for how long.
Step 2: Check Your Eligibility
Any Indian resident, senior citizen, HUF, or minor (with guardian) can invest.
Step 3: Visit Online or Branch
- Open FD via Baroda Connect or Baroda mConnect+ app
- Or visit your nearest BoB branch
Step 4: Provide KYC Documents
You’ll need:
- PAN Card
- Aadhaar or any valid ID
- Recent photograph
- Bank account details (if not existing)
Step 5: Deposit the Funds
Once processed, you’ll receive an FD receipt/certificate with all details.
Taxation on FD Interest
- TDS Deducted if interest exceeds ₹40,000 per year (₹50,000 for seniors)
- File Form 15G/15H to avoid TDS if your income is below taxable limits
see also: How Much Will You Get on Maturity from a ₹2.5 Lakh PNB Fixed Deposit in 2025?
FD vs Other Investments – A Quick Comparison
| Investment Type | Risk | Returns (Approx) | Lock-in | Tax Benefit |
|---|---|---|---|---|
| FD | Low | 4.25% – 7.75% | Flexible | No (except Tax Saver FD) |
| Mutual Funds | Medium-High | 8% – 15% | None | Tax-efficient after 1 year |
| PPF | Very Low | 7.1% (Compounded) | 15 years | Yes (Sec 80C) |
| SIP | Medium | Varies (10% avg) | Flexible | Depends on fund type |
FDs are ideal for conservative investors who prefer capital protection with guaranteed returns.
Bank of Baroda FD Scheme FAQs
Q1. How can I earn ₹51,050 on ₹2 lakh in Bank of Baroda FD?
By investing ₹2 lakh for 5 years at 7.5%+ cumulative interest, you can earn around ₹51,050 on maturity.
Q2. Is the interest guaranteed?
Yes. Bank of Baroda FDs offer fixed, guaranteed interest for the tenure you choose.
Q3. Can I break my FD early?
Yes, but a penalty of 0.50%–1.00% may reduce your effective interest.
Q4. What’s the minimum deposit?
Only ₹1,000 is needed to start an FD.
Q5. Is it better to choose monthly or cumulative interest?
If you don’t need regular income, choose cumulative for higher final returns.
