Looking to invest your hard-earned money in a safe and rewarding fixed deposit (FD)? The Bank of Baroda (BoB) has a scheme where depositing ₹2,00,000 could earn you a fixed interest of ₹17,902, depending on the tenure and applicable interest rate.
Whether you’re a young investor, a retired senior, or a working professional planning for short-term or long-term goals, this scheme offers a stable return and minimal risk — two of the biggest reasons why FDs continue to be a favorite among Indian savers.
Deposit ₹ 2 Lakh in Bank of Baroda’s Scheme
| Feature | Details |
|---|---|
| Bank | Bank of Baroda |
| Investment Amount | ₹2,00,000 |
| Fixed Interest Earned | ₹17,902 (approx.) |
| Tenure Required | Around 2 years at 7.15% p.a. interest |
| Interest Rate (General Citizens) | Up to 7.15% p.a. |
| Interest Rate (Senior Citizens) | Up to 7.65% p.a. |
| Risk Factor | Very Low (Capital protection assured) |
| Payout Option | Lump sum at maturity or monthly/quarterly interest payouts |
| Taxability | Interest is taxable; TDS applicable if interest exceeds ₹40,000 per annum |
| Official Website | bankofbaroda.in |
If you’re looking for a guaranteed return investment that combines safety, simplicity, and decent returns, Bank of Baroda’s FD scheme is a smart choice. By investing ₹2,00,000, you can comfortably earn up to ₹17,902 in interest over two years — without worrying about market volatility or capital loss.
Whether you’re a young saver, salaried professional, or a retiree, FDs are still relevant in 2025 — especially when interest rates are favorable. For the best results, align your FD with your financial goals and tax strategy.
What Makes Bank of Baroda’s FD Scheme Attractive?
Bank of Baroda is one of India’s leading public sector banks, known for offering competitive FD interest rates and flexible investment options. For those looking to park ₹2 lakh safely, BoB’s fixed deposit is a smart choice due to:
- Assured returns irrespective of market fluctuations
- Higher interest rates for senior citizens
- Tenure flexibility ranging from 7 days to 10 years
- Backed by Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh
see also: These Two Schemes of Post Office Are Best for Investing a Big Amount
How Does the ₹17,902 Fixed Interest Work?
Let’s break it down with a simple example.
If you invest ₹2,00,000 in a 2-year FD at 7.15% p.a. (the current highest offering for general customers):
- Interest Compounded Quarterly
- Maturity Amount ≈ ₹2,17,902
- Interest Earned = ₹17,902
You don’t need to do any complex math. You can try this yourself using the Bank of Baroda FD calculator. For senior citizens, the interest can be as high as 7.65%, pushing the total interest earned beyond ₹18,000 for a similar investment and tenure.
Step-by-Step Guide to Invest ₹2,00,000 in Bank of Baroda FD
Step 1: Choose the Tenure
Select a tenure that offers the best interest rate. As of now:
- 2 years offers 7.15% for general public
- 7.65% for senior citizens
Step 2: Choose the Interest Payout Mode
- Cumulative FD: Interest is paid at maturity (ideal for wealth building)
- Non-Cumulative FD: Interest paid monthly/quarterly (suitable for retirees)
Step 3: Apply Online or Offline
You can invest through:
- BoB Net Banking
- BoB Mobile App
- Visiting a branch near you with KYC documents
Step 4: Submit Documents
- PAN Card
- Aadhaar Card
- Passport-size photograph
- For senior citizens, age proof is also required
Step 5: Nomination & TDS Preferences
SIP Investments: 1 करोड़ और 2 करोड़ का कॉर्पस बनाने के लिए देखें पूरी जानकारी, होगा फायदा ही फायदा
You can nominate someone and choose if you want Form 15G/15H submission to avoid TDS if eligible.
Why Choose Bank of Baroda Over Other Banks?
Compared to many private and public banks, BoB offers competitive FD rates, especially for mid-term tenures (1-3 years).
| Bank | 2-Year FD Rate (General) | Senior Citizen Rate |
|---|---|---|
| Bank of Baroda | 7.15% | 7.65% |
| SBI | 6.80% | 7.30% |
| ICICI Bank | 7.00% | 7.50% |
| HDFC Bank | 7.00% | 7.50% |
What About Tax on ₹17,902 Interest?
While FDs are safe, the interest is fully taxable under “Income from Other Sources”.
- If your total interest from all FDs exceeds ₹40,000 (₹50,000 for seniors), TDS at 10% is deducted
- Submit Form 15G (non-seniors) or 15H (seniors) if your income is below the taxable limit to avoid TDS
Tip: To maximize post-tax returns, consider laddering your FDs or exploring Tax Saving FDs under Section 80C.
Smart Tips for Investors
- Plan the tenure wisely: Lock-in for 2-3 years for best rates
- Compare online: Use FD calculators and compare rates across banks
- Senior citizens: Always ask for the extra interest benefit
- Prefer cumulative FDs if you don’t need monthly payouts
- Track maturity: Set reminders to reinvest or renew
see also: SBI Gives Big Relief They Will Get Interest of ₹44,000 on ₹1 Lakh Investment
Deposit ₹ 2 Lakh in Bank of Baroda’s Scheme FAQs
Q1. Is it safe to invest ₹2 lakh in Bank of Baroda FD?
Yes. BoB is a government-owned bank, and deposits up to ₹5 lakh are insured under DICGC, making it one of the safest investment options.
Q2. What is the interest rate for a 2-year FD in BoB?
Currently, 7.15% p.a. for general citizens and 7.65% p.a. for senior citizens.
Q3. Can I break my FD before maturity?
Yes, but premature withdrawal may reduce the interest earned and may attract penalties. Check with BoB for applicable terms.
Q4. How is interest calculated on Bank of Baroda FD?
Interest is generally compounded quarterly, leading to a slightly higher effective yield than the nominal rate.
Q5. Is the ₹17,902 interest fixed or variable?
It is fixed if you lock the amount for a specific tenure at the applicable rate. Once booked, the rate remains unchanged until maturity.
