Bank of Baroda Short Term FD

Understanding the Bank of Baroda Short-Term Fixed Deposit Scheme

Bank of Baroda Short Term FD enables customers to invest a lump sum in shorter periods and earn a predetermined interest that is not subject to market fluctuations. It suits the conservative investor and older citizens who want some stability and assured returns. Bank of Baroda FD interest rates vary depending on the duration of the tenure of the deposit, which gives the customers an option to select the time that is more convenient to their financial needs, and senior citizens receive higher returns on their investments.

Key Features of Bank of Baroda Short-Term FD

The key features of the Bank of Baroda short-term fixed deposit scheme are as follows:

• Tenure: Short-term Fixed Deposits have an investment period of 7 days to 1 year and are therefore useful in achieving short-term or immediate financial objectives.
• Fixed Interest Rate: Bank of Baroda Short Term FDs offer a fixed interest rate over the period of the selected tenure, which guarantees stability in the returns.
• Safety: These deposits are considered low-risk investments, and deposits of up to ₹5 lakh are insured against the Deposit Insurance and Credit Guarantee Corporation (DICGC), which gives the depositors additional financial security.
• Minimum Amount of Deposit: The deposit amount allowed to open a short-term FD is ₹1,000, and then in multiples of ₹100, and therefore is affordable to all types of investors.
• Availability of Loan/Overdraft: Customers have access to Bank of Baroda Loan against FD, which allows accessing up to 95% of the outstanding deposit balance. Such loans are charged with interest as determined by the bank rules and guidelines, which allows liquidity without the loss of deposits.
• Liquidity: Bank of Baroda FD premature withdrawal enables you to withdraw prematurely with a penalty of 1% in case of unforeseen financial needs.
• Automatic Renewal: It offers an automatic renewing feature where deposits are renewed automatically upon maturity without any additional formalities.

Bank of Baroda Short-Term FD Interest Rates

The short-term FDs offered by Bank of Baroda have different interest rates depending on the tenure and type of depositors. Although these rates are periodically revised, the bank always provides competitive returns. The interest rates of less than ₹3 crore deposits under the Short-term FD in BOB are as listed below:

*BOB FD Interest Rates Effective from 12 September 2025

Procedure for Opening a Bank of Baroda Short-Term FD

Bank of Baroda provides both online and offline channels for opening short-term fixed deposits.

Online Process to Open BOB Short Term FD

Follow these simple steps to conveniently open a short-term Fixed Deposit through Bank of Baroda’s digital banking channels:

• Log In: Log in to Bank of Baroda Internet Banking or the BoB World app.
• Navigate: Go to either the Term Deposits or Fixed Deposits menu.
• Select FD: Click on the option Open New Fixed Deposit.
• Enter Details: Enter the deposit amount and the desired time period.
• Choose Interest Mode: Select cumulative or periodic interest payment.
• Confirm: Verify the information and book your FD.

Offline Process to Open BOB Short Term FD

If you prefer a branch-based experience, follow the steps below to open a short-term Fixed Deposit at Bank of Baroda:

• Visit Branch: Visit your nearest Bank of Baroda branch.
• Fill Form: Fill in the FD account opening form.
• Submit KYC: Submit KYC documents to be verified.
• Select Term & Interest: Choose the FD term and mode of interest payout.
• Deposit Funds: Make a deposit in cash, through cheque/ transfer.
• Receive Receipt: Get the FD receipt for confirmation.

Who Should Invest in Bank of Baroda Short-Term FD

Bank of Baroda short term fixed deposit may include the following categories of depositors:

• Depositors Holding Short-Term Funds: Depositors who have idle short-term funds can earn higher returns by investing in short-term FDs rather than holding the money in savings accounts.
• Conservative Investors: Customers who want to get guaranteed and risk-free returns can rely on the fixed interest payouts of the BoB.
• Senior Citizens: Senior citizens get stable short-term incomes due to higher applicable interest rates.
• Working Professionals: Salaried depositors may save on future expenditures, e.g., premiums or EMIs, or personal commitments using short-term FDs.
• Small and Medium Businesses: Businesses can save their short-term surplus cash in these FDs to earn extra income and also maintain liquidity.
• First-Time Investors and Students: BoB short-term FDs are suitable for students and first-time investors as they have shorter terms, a minimum deposit requirement, and are safe.

Taxation Framework for Bank of Baroda Short-Term Fixed Deposits

The interest that is charged on short-term Fixed Deposits in Bank of Baroda is completely taxable under the Income Tax Act. In case the total amount of FD interest on all the BoB branches is greater than ₹50,000 to general depositors or ₹1,00,000 to the senior citizens in any financial year, Tax Deducted at Source (TDS) becomes applicable. TDS rate is 10% when PAN details are provided, otherwise, it goes to 20%. The interest earned is included in the total income of the depositor, which is taxed according to the existing income tax slab. However, depositors with income less than the taxable threshold are exempted from TDS by filing Form 15G or 15H.

Key Takeaways

BOB Short-Term Fixed Deposits are safe, risk-free investments that come in a tenure of 7 days to 1 year and have a fixed interest rate ranging between 3.50% to 6.25% in case of regular customers and 4.00% to 6.75% in case of senior citizens. BOB offers other advantages for this Short-term FD, like premature withdrawal, automatic renewal, and DICGC coverage up to ₹5 lakh, which makes it a suitable choice when investors want to get stable and predictable short-term returns. Although the amount of interest gained is taxable, TDS can only be applied once annual interest exceeds the stipulated thresholds, which also makes this FD a perfect choice for those seeking to secure consistent returns without being tied to financial obligations.