If you’re looking for a safe and reliable investment, depositing ₹ 2,00,000 in Bank of Baroda’s Fixed Deposit (FD) scheme could be a smart move. Not only does it offer guaranteed returns, but it also provides fixed interest earnings of up to ₹ 17,902, depending on the tenure and type of FD you choose.
In this guide, we break down how this interest is calculated, which FD scheme offers the best return, and what you should consider before investing. Whether you’re a working professional, retiree, or someone just starting out, this article is for you.
Bank of Baroda’s Scheme and Get Fixed Interest
| Feature | Details |
|---|---|
| Investment Amount | ₹ 2,00,000 |
| Interest Earned | Up to ₹ 17,902 (approximate) |
| Scheme Type | Bank of Baroda Fixed Deposit (Standard & bob Utsav FD) |
| Tenure Options | 7 days to 10 years |
| Top Interest Rate (General) | 7.30% p.a. for 400 days (bob Utsav FD) |
| Top Interest Rate (Senior Citizens) | 7.80% p.a. |
| Premature Withdrawal | Allowed with conditions |
Investing ₹ 2,00,000 in a Bank of Baroda FD is a secure and rewarding way to grow your money. With options like the bob Utsav FD offering up to 7.80% interest, it’s ideal for conservative investors who prefer safety over risk.
Whether you’re planning for a short-term goal or building a retirement corpus, this FD offers stability and decent returns. Just remember to match your investment tenure with your financial goals and keep an eye on tax implications.
What Is a Bank of Baroda Fixed Deposit?
A Fixed Deposit (FD) is a financial instrument offered by banks where you deposit a lump sum for a fixed tenure and earn guaranteed interest on it. Bank of Baroda (BoB), one of India’s largest public sector banks, offers several FD options with competitive interest rates.
With a minimum investment of just ₹1000, you can open an FD account at BoB. But in this example, we’re considering a lump sum of ₹ 2,00,000 to showcase potential earnings.
Why Choose BoB FD?
- Safe and secure investment backed by a government-owned bank
- Higher rates for senior citizens
- Flexible tenure choices
- Premature withdrawal options
- Auto-renewal facility
see also: Are You Investing Money in FD? Best Interest Rates in 2025
Interest Calculation Example: ₹ 2,00,000 Investment
Let’s break down the math.
1. Standard FD – 1 Year Tenure at 6.85% (General Citizens)
- Principal: ₹ 2,00,000
- Interest: ₹ 13,700 (approx)
- Maturity Amount: ₹ 2,13,700
2. Standard FD – 1 Year Tenure at 7.35% (Senior Citizens)
- Interest: ₹ 14,700 (approx)
- Maturity Amount: ₹ 2,14,700
3. bob Utsav FD – 400 Days at 7.30% (General)
- Interest: ₹ 17,902 (approx)
- Maturity Amount: ₹ 2,17,902
4. bob Utsav FD – 400 Days at 7.80% (Senior Citizens)
- Interest: ₹ 19,110 (approx)
- Maturity Amount: ₹ 2,19,110
Note: Interest may be compounded quarterly or paid at maturity depending on the type of FD.
How to Open a Bank of Baroda FD
Opening an FD is simple and can be done online or offline.
Online Process
- Log in to Bank of Baroda NetBanking.
- Navigate to the “Term Deposit” section.
- Select FD type, amount, tenure, and interest payout option.
- Confirm and submit.
Offline Process
- Visit your nearest BoB branch.
- Carry ID proof, address proof, and PAN card.
- Fill out the FD application form.
- Submit documents and deposit amount.
Tax Implications You Should Know
- Interest earned on FD is taxable under “Income from Other Sources”.
- If interest exceeds ₹ 40,000 in a year (₹ 50,000 for senior citizens), TDS @ 10% is deducted.
- Submit Form 15G/15H to avoid TDS if your income is below the taxable limit.
Tips to Maximize Your Returns
- Compare tenures: Longer tenures generally fetch higher interest.
- Use auto-renewal: Helps avoid lapses in interest earnings.
- Ladder your FDs: Spread your investment across different maturities to maintain liquidity.
- Reinvest interest: Choose cumulative option for compounding benefits.
see also: Where is the Highest Return on FD? List of Banks to Earn at Fixed Rate
Bank of Baroda’s Scheme FAQs
1. What is the minimum deposit amount in Bank of Baroda FD?
The minimum deposit amount is ₹ 1,000.
2. Is premature withdrawal allowed?
Yes, but penalties may apply. However, FDs under ₹ 5 lakh with tenure above 12 months are exempt from premature withdrawal charges.
3. Are BoB FDs safe?
Yes. Bank of Baroda is a government-owned bank, and deposits up to ₹5 lakh are insured under DICGC.
4. Can NRIs invest in BoB FD?
Yes. NRE and NRO FD options are available for NRIs.
5. Where can I check current FD rates?
You can check updated FD rates on Bank of Baroda’s official FD page.
