Fixed deposits (FDs) remain one of the safest and most reliable investment options, especially for risk-averse investors. Among the many offerings in the market, Bank of Baroda’s (BOB) Special FD Scheme has been making waves for its high-interest rates and secure investment options. If you’re looking for an FD scheme that provides big returns with a low investment, this guide will walk you through everything you need to know.
BOB Special FD Scheme
| Feature | Details |
|---|---|
| Scheme Name | bob Utsav Deposit Scheme |
| Bank | Bank of Baroda (BOB) |
| Tenure | 400 days |
| Interest Rate (General Public) | 7.30% p.a. |
| Interest Rate (Senior Citizens) | 7.80% p.a. |
| Interest Rate (Super Senior Citizens) | 7.90% p.a. |
| Minimum Investment | ₹10,000 |
| Maximum Investment | ₹3 crore (Regular FD) |
| Premature Withdrawal | Allowed with penalty (except for Non-Callable FDs) |
| Loan Facility | Available (up to 90% of FD value) |
| Tax Benefits | Under Section 80C (for Tax-Saving FDs) |
| Official Website | Bank of Baroda |
The BOB Special FD Scheme offers one of the best risk-free investment options in India, with high returns in a short period (400 days). Whether you’re a senior citizen looking for secure returns or a young investor seeking steady growth, this scheme caters to all.
Why Choose the BOB Special FD Scheme?
1. High-Interest Rates for Maximum Growth
Bank of Baroda offers some of the best FD interest rates in India under this scheme. Compared to savings accounts, which typically offer around 2.5% – 3.5%, this FD scheme provides up to 7.90% per annum for super senior citizens.
For instance, if you invest ₹1,00,000 for 400 days at 7.30%, you will earn approximately ₹8,000 in interest, making it a lucrative short-term investment.
2. Flexible Investment Options
- The scheme is open to everyone, including general investors, senior citizens, and NRIs.
- Minimum deposit starts from just ₹10,000, making it accessible for small investors.
- You can invest up to ₹3 crore, ideal for high-net-worth individuals (HNIs) and businesses.
3. Secure and Risk-Free Returns
Fixed deposits are a low-risk investment option. Unlike stocks or mutual funds, your capital is secure, and you receive a guaranteed return. Plus, deposits in Bank of Baroda are insured up to ₹5 lakh per depositor under the DICGC (Deposit Insurance and Credit Guarantee Corporation).
4. Premature Withdrawal and Loan Facility
- Investors can withdraw funds before maturity, although a small penalty may apply.
- You can take a loan of up to 90% of your FD amount, ensuring liquidity while your investment continues to earn interest.
see also: PNB Launches New 303 Days FD Scheme
Step-by-Step Guide to Investing in the BOB Special FD Scheme
Step 1: Check Eligibility
You can apply if you are: An Indian Resident. A Non-Resident Indian (NRI) (under NRE/NRO accounts). A senior citizen or super senior citizen. A business entity, trust, or minor (under guardian supervision)
Step 2: Choose the Deposit Amount and Tenure
- Decide how much you want to invest (minimum ₹10,000, maximum ₹3 crore).
- Select the 400-day tenure to maximize returns under this special scheme.
Step 3: Open the FD
You can apply via: Net Banking (Online), BOB Mobile Banking App, Visiting a BOB Branch
Step 4: Submit Required Documents
Identity Proof (Aadhaar, PAN, Passport, Voter ID), Address Proof (Utility Bill, Aadhaar, Bank Statement) Recent Photograph, KYC (Know Your Customer) Compliance
Step 5: Get FD Receipt and Monitor Your Investment
Once the deposit is placed, BOB will issue an FD receipt. You can track your FD via online banking or by visiting your branch.
see also: PPF Extend Rules: How to Use Your Public Provident Fund for Regular Income
BOB Special FD Scheme FAQs
1. What is the minimum and maximum investment amount?
The minimum deposit required is ₹10,000, while the maximum can go up to ₹3 crore for regular investors.
2. Can NRIs invest in this FD?
Yes, NRIs can invest through NRE/NRO fixed deposit accounts.
3. Is there a premature withdrawal facility?
Yes, premature withdrawal is allowed with a small penalty. However, non-callable deposits do not allow premature withdrawals.
4. Are loans available against this FD?
Yes, you can avail of a loan up to 90% of your FD value.
5. Is this FD taxable?
Interest earned on FDs is taxable under Income Tax rules. However, tax-saving FDs qualify for deductions under Section 80C.
