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The Bank of Baroda's Recurring deposit (RD) scheme is a basic saving plan, which helps customers to regulate their savings and reap its benefits from time to time.
A recurring deposit is an investment cum savings option for those who want to save regularly over a certain period of time and earn a higher interest rate. It is a type of term deposit which allows one to save a fixed amount of money every month systematically. If you are familiar with SIP in Mutual Funds, RD works similarly in banking. Every month, a fixed amount of money is deducted either from a savings or a current account. And, at the end of the maturity, investors are paid back their invested money with accrued interest.
A user willing to open a recurring deposit account with Bank of Baroda Bank can choose any amount and term according to your convenience.
Here's the interest rates offered by Bank of Baroda for deposits less than Rs. 2 crores.
As on Oct 2021-
Period | Deposits (%p.a.) |
---|---|
180 days | 3.70% |
181 days – 270 days | 4.30% |
271 days – 364 days | 4.40% |
1 year | 4.90% |
1 year 1 day – 400 days | 5.00% |
401 days – 2 years | 5.00% |
2 years 1 day – 3 years | 5.10% |
3 years 1 day – 5 years | 5.25% |
5 years 1 day – 10 years | 5.25% |
Here's the interest rates offered by Bank of Baroda for deposits less than Rs. 2 crores.
As on Oct 2021-
Period | Deposits (%p.a.) |
---|---|
180 days | 4.20% |
181 days – 270 days | 4.80% |
271 days – 364 days | 4.90% |
1 year | 5.40% |
1 year 1 day – 400 days | 5.50% |
401 days – 2 years | 5.50% |
2 years 1 day – 3 years | 5.60% |
3 years 1 day – 5 years | 5.75% |
5 years 1 day – 10 years | 5.75% |
Investment Amount:₹180,000 Interest Earned:₹19,746 Maturity Amount: ₹199,746RD Calculator
A Recurring Deposit calculator is a good way of calculating maturity amount on RD. You can follow this method to estimate your RD amount on maturity.
Illustration-
RD Calculator | INR |
---|---|
Monthly Deposit Amount | 500 |
RD in month | 60 |
Rate of Interest | 7% |
RD Maturity Amount | INR 35,966 |
Interest Earned | INR 5,966 |
Some of the features of BOB recurring deposit are:
All individuals and non-individuals are eligible to open Bank of Baroda RD scheme.
The minimum amount of deposit is INR 50 and in multiples of INR 50 for rural and semi-urban branch. And for urban and metro branch the minimum RD deposit amount is INR 100 and in multiples of INR 100. There is no maximum RD deposit amount.
The minimum period of time one can stay invested in the BOB RD scheme is six months and the maximum tenure is 120 Months.
Interest should be paid after deducting penalty of 1% from such applicable rate or the contracted rate whichever is lower in the cases which are subject to charging penalty
Irrespective of tenure uniform rate of Re.1/- per
100/- per month
Systematic Investment plan (SIP) is a way to put your money in mutual funds. Investment can be done on a periodic Basis - daily, weekly, monthly or quarterly.
You need to deposit a small amount of money at every interval. The minimum amount can be as low as INR 500.
SIPs can help in all kinds of investment goals, whether short- or long –term, depending on the frequency of investment, funds chosen and other factors.
SIPs offer flexible instalment plans of daily, weekly, monthly, quarterly etc.
Returns can be earned better here. The longer you invest via a SIP in mutual funds, especially in an Equity Fund, the higher are the chances to earn good returns.
To Cancel SIP, the investors can simply close their investment and withdraw their money without any penal charges.
Here's a list of best performing equity SIPs for an investment horizon of five years and above
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2023 (%) IDFC Infrastructure Fund Growth ₹50.145
↑ 0.66 ₹1,777 100 -10 1.5 48.6 26.6 29.2 50.3 Motilal Oswal Multicap 35 Fund Growth ₹59.4739
↑ 0.81 ₹12,024 500 4 16 45 18.8 17.3 31 Franklin Build India Fund Growth ₹136.544
↑ 0.69 ₹2,825 500 -4.9 0.9 40.5 26.9 26.8 51.1 Invesco India Growth Opportunities Fund Growth ₹90.44
↑ 0.68 ₹6,149 100 -0.7 12.1 39.4 19.3 20.2 31.6 Principal Emerging Bluechip Fund Growth ₹183.316
↑ 2.03 ₹3,124 100 2.9 13.6 38.9 21.9 19.2 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Nov 24
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