Bank of Baroda RD Interest Rates

Bank of Baroda (BOB) is an Indian nationalized bank designated as a profit-making public sector undertaking (PSU). Today, it is the third largest nationalized Bank in India, with its headquarters in Vadodara, Gujarat. Bank of Baroda offers flexible and fixed recurring deposit options to their account holders to encourage little investments for more significant returns.

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BOB RD Interest Rate 2022 Table

Below is the RD Interest rate table of the Bank of Baroda (as of April 2022):

Tenure of deposit Interest Rate for Regular Customers (%P.A.) Interest Rate for Senior Citizens (%P.A.)
180 days 3.7% 4.2%
181 days to 270 days  4.3% 4.8%
271 days to 364 days 4.4% 4.9%
One year 4.9% 5.4%
Above one year to 400 days 5.0% 5.5%
401 days to 2 years 5.0% 5.6%
Above two years to 3 years 5.1% 5.6%
Above three years to 5 years 5.25% 5.75%
Above five years to 10 years 5.25% 5.75%

Disclaimer: RD Interest rates are subject to change with time. PolicyBazaar does not endorse, rate, or recommend any particular company or product. The policyholder bears the investment risk in the investment portfolio. 

Features of the Recurring Deposit account:

  • The minimum monthly installment for the RD account is just Rs.50 in rural and semi-urban areas and Rs.100 in metro areas.

  • RD tenure can range from 6 months to 120 months.

  • Bank of Baroda RD account is available for overdraft and loan facility up to 95% of deposit account.

  • Interest earned on RD is applicable for the TDS as per the Income Tax Department guidelines.

  • You can also enjoy flexible monthly payments if you have a surplus in hand with the BOB's flexible RD scheme.

Types of BOB RD Accounts

There are three types of recurring deposits available at Bank of Baroda–

  1. Recurring Deposit:

    Individuals or non-individuals can open the RD account with a minimum monthly installment of Rs.50 in rural and semi-urban area branches and Rs.100 in urban and metro area branches. For this deposit scheme, there is no upper limit for the deposit amounts. The interest on the deposits is compounded quarterly and will be credited to the account on maturity with the deposit amount.

  2. Flexible Recurring Deposit Scheme – Yatha Shakti Jama Yojana:

    This scheme is one of the worthy RD schemes. It allows account holders to enjoy flexible monthly deposits according to the surplus. The core installment deposit amount, the minimum monthly amount, is Rs.100. The incremental installment is credited in multiples of Rs.100.

    The account holder can increase the monthly installment deposit up to three times the core amount. The maximum limit of the deposit is Rs.10,000. The tenure of RD must be at least 12 months and up to 120 months.

  3. Baroda Holiday Saving Recurring Deposits:

    Partnering with Thomas Cook India, Bank of Baroda has brought the Baroda Holiday Saving Recurring deposit scheme to plan your dream holidays. In this scheme, you can plan the following year's holiday destination at the current year's cost.

    In this scheme, you must pay the cost of your desired destination in 12 equal installments over the year. The tour cost estimated will divide into 13 equal installments, from which you have to pay the amount of only 12 installments. Interest earned from the 12 installments will adjust the 13th installment of the tour cost. Thomas cook India will finance any of the shortfall amounts.

Eligibility to Open BOB RD Account:

  • Individuals can open the RD in their name, or more than one can open the RD in a joint name.

  • Any minor who has attained age ten years and above can open an RD account in their name.

  • Minors below the age of 10 years can begin RD under the guardianship of their parent or legal guardian.

  • NRI individuals can also open an RD in BOB through Non-Resident External Account (NRE) and a Non-Resident Ordinary Account (NRO).

  • You can open an RD in BOB with:

    • Proprietorship or Partnership Firm, joint stock companies, Company or Corporate organization

    • Hindu Undivided Family

    • Associations, Clubs, Societies, Trust or Religious institutes, or Charitable Educational Institutions.

How to Open BOB RD Account?

The existing BOB account holders can open the Recurring Deposit online or offline: 

  • Offline: You can easily open an RD account by visiting your nearest BOB branch with all the necessary documents. A representative from the Bank will guide you through the process and help you to open an RD account.

  • Online: If you want to open an RD account but don't want to visit the local branch, then you can open one online through net banking.

Follow the steps listed below to open a BOB RD online:

  • First, visit the official BOB website.

  • Then, click on login, net banking, and fill in your credentials.

  • Now, open the menu and click on "Open Recurring Account."

  • A form will pop up, and you can carefully fill in all the details like the period of the RD, the monthly installment amount, etc.

  • After completing the form, click on continue. By following these steps, you can easily open an RD account.

For new users: If you do not have a BOB account, you will have to apply for a Bank of Baroda account at your nearest branch. Alternatively, you can open your account via the BOB website. After becoming a BOB account holder, you can open an RD either by net banking or by applying to a branch. 

Documents Required for the Procedure:

  • Bank Application form

  • Passport size photograph

  • ID Proof, such as;

    • Aadhar card

    • Voter ID

    • Driving license

    • Ration card

    • Passport

    • PAN card

    • Government ID card or

    • Senior citizen card

  • Address Proof, such as;

    • Passport

    • Aadhar card

    • Electricity bill

    • Phone bill

    • Bank statements

Tax Benefits of RD Account

The amount deposited in the BOB RD account is not eligible for tax exemption. However, the interest earned from RD is taxable according to the account holder's tax bracket, irrespective of the interest rate or other factors. Moreover, if the interest you earned on the fixed deposit or recurring deposits is more than Rs. 40,000 during any financial year, the Bank will deduct the TDS at 10%. The TDS deducted can be claimed further while you file your return.

Premature Withdrawal 

Bank of Baroda allows premature withdrawal of the RD, but partial withdrawal is not allowed. According to the guidelines, BOB levies a penalty of 1% of the interest rate on the premature RD withdrawal.


  • Do bank staff and senior citizens get additional interest rates on the regular interest chart?

    Yes. The Bank staff, including the ex-staff and senior citizens, can get additional interest rates per the bank guidelines. Additionally, retired senior staff members will get both staff and senior citizen benefits.
  • How does the BOB calculate the penalty on the late payment of the deposit?

    For the delayed payment, the fraction of the month passed after the due date is considered the whole month for clarity. For every delayed month, a penalty of Rs.1 + GST for every Rs. 100/- is charged.
  • Is it possible to convert regular RD into Yatha Shakti Jama Yojana?

    Yes, you can convert your regular RD into Yatha Shakti Jama Yojana at any time. But for more details contact your nearest branch.
  • How can you open a flexible RD scheme?

    To open a flexible RD account, you must fill Yatha shakti Jama Yojana form.
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