Earning income from your investments doesn’t have to be a complicated exercise. It is possible to earn a decent interest income out of the amount lying in your bank account by opening a term deposit account. A term deposit is any amount kept with the bank for a fixed period of time. With a Bank of Baroda fixed term deposit, you can open a term deposit bank account for a period as short as 7 days and earn income.
Benefits of Term Deposit:
Easy and convenient:
Opening a bank term deposit is very convenient. It can be opened online through NetBanking, or via the mobile banking application. Forms for a term deposit are available online and in branches.
Competitive interest rates:
Bank of Baroda offers competitive interest rates on term deposit schemes. The interest rates differ based on the period of the fixed deposit.
Bank of Baroda offers different options for fixed term deposits. The periods can be as short as 7 days or go up to 10 years.
Loan/Overdraft facility available:
Bank of Baroda term deposit customers can avail a loan/overdraft facility against their time deposit. The loan amount is available up to 95% of the fixed deposit amount. The rate of interest on these loans is 1.5% to 1.75% over and above the fixed deposit rate.
Term deposits can be used to create investments in the name of children and senior citizens.
You can use the nomination facility to nominate different people for different fixed deposits. Nomination can be done online and in the form as well.
Premature withdrawal allowed:
Each term deposit opening form has an option, callable or non callable. If the callable option is selected, it allows you to withdraw your term deposit prematurely. The rate of interest paid will be 1% less than the time deposit rate of interest.
Features of Term Deposit Scheme:
Fixed Term Investments:
Each bank term deposit is kept for the fixed duration that is selected. This amount is blocked for that duration and unless the callable option is chosen, the amount cannot be withdrawn before maturity.
Earn Interest half yearly:
Interest is earned half yearly compounded quarterly on these deposits. It is credited to the fixed deposit account on maturity. Monthly or Quarterly payment of interest in linked SB account is also available in selective schemes.
Beneficial rate for senior citizens:
Senior citizens get a higher rate of interest on these deposits. Bank of Baroda gives 0.5% extra to senior citizens for their term deposits.
No TDS if interest amount is less than Rs. 10,000/-
The limit for deducting TDS is Rs. 10,000. If your income is below the no tax limit, you can fill Form 15G/15H with the bank and TDS won’t be deducted.
Auto renewal of fixed deposit:
Instructions can be given to the bank to auto renew the term deposit once it matures. The principal and interest amount will be renewed automatically on maturity.
Minimum deposit amount:
The minimum deposit amount is Rs. 1,000 and can be increased in multiples of Rs. 100.
Opening a fixed deposit with Bank of Baroda is really easy and simple. It can be done online within a matter of minutes and opening it in a branch is convenient as well.