Small savings today for bigger happiness tomorrow.

Opt for Monthly Income Plan and get multiple benefits.

  • Benefits
  • Features
  • Most Important Terms and Conditions (MITC)

Monthly Income Plan (MIP) : Features

Product Nature The Monthly Income Plan is designed for those individuals who regularly need money to supplement their income i.e. each month. Under this scheme Interest on Deposit is paid on monthly basis. Interest earned on deposit becomes another source of income.
Eligibility
  • An individual in his own name.
  • More than one individual in joint name.
  • Minor of age 10 and above on terms laid down by the bank. Accounts can also be opened in the name of minor with their father/mother, as guardian.
  • Clubs, associations, Educational Institutions, Partnerships and joint stock companies, provided they are registered and bank is satisfied that the account is opened for genuine savings purpose.
Minimum Amount Of Deposit Minimum Amount Rs 1000 and in multiples of Rs100.
Maximum Amount Of Deposit No upper limit.
Period Of Deposit
  • Minimum – 12 months
  • Maximum – 120 months
Rate Of Interest

As per the maturity period of the deposit.  Interest shall be paid at discounted value on monthly basis.

  • Senior Citizen: An Additional interest @ 0.50 % is payable.
  • Staff/Ex-staff: As per Bank guidelines issued from time to time (Presently additional interest 1% is payable).
  • Ex-staffs who are Senior Citizen: shall get both the benefits of Staff rate as well as Senior Citizen interest rate.
Nomination Facility Nomination facility will be available.
Tax Deduction At Source Interest payment is subject to Tax Deducted at source (TDS) as per prevailing Income Tax ACT.
Availability Of Loan/Overdraft
  • Overdraft / Loan against deposit provided on demand up to 95 % of the outstanding balance in the account as on date of loan.
  • Interest will be charged as per Bank’s extant guidelines from time to time issued by retail banking department.
Other Terms And Conditions 
  • No penalty for premature payment will be levied in case of premature payment of deposits up to Rs 5 lacs provided it remained with the bank for a minimum period of 12 months
  • Accepted as security by Government departments
  • Accepted as margin for non-fund based activities
  • All other instructions applicable to 'Fixed Deposits' will apply to these deposits
  • Eligibility norms and all other instructions applicable to 'Fixed Deposits' will apply to these deposits.
Premature Closure

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.

  • No penalty for premature payment will be levied in case of premature payment of deposits up  to Rs 5 lacs provided it remained with the bank for a minimum period of 12 months
  • Eligibility norms and all other instructions applicable to 'Fixed Deposits' will apply.

Condition for premature closure of Deposits of Rs. 1.00 Crore and above i.e.

  • 31 days prior notice, and
  • Penalty @1.5% on applicable rate of interest for the period for which the deposit has remained with the bank, will continue as per circular No. BCC/BR/110/540 Dated 31.10.2018
Auto Renewal Deposit will be renewed for the period of 1 year with the interest rate applicable on due date, if not instructed otherwise.

Monthly Income Plan (MIP) : Most Important Terms and Conditions (MITC)

  • Rate of Interest to Senior Citizen: An additional interest to Resident Senior Citizens as per Bank's guidelines is payable for deposits below Rs. 3.00 Crores only. Senior Citizen rate is not applicable to NRE/NRO/Capital Gain/FCNR. For latest rates, please visit
  • Tax Deduction at Source:TDS will be deducted as per income tax rules. No TDS will be deducted if a person submits form 15G/15H as applicable.
  • TDS Certificate:TDS certificate will be provided to all customers.
  • Advance against Callable Deposits: This facility is not available to a minor account in single name and HUF. If the interest is not deposited for more than 2 quarters, term deposit will be apportioned immediately.
  • Advance against (Except Non-Callable Deposits): Loan / Overdraft / Advance facility is not available against the security of Non-Callable Deposits as per Bank’s guidelines.
  • Interest certificate available at request of customer
  • Deposit certificate- Term Deposit Receipt is provided
  • Term deposits can be transferred from one branch to another branch at the request of the customer.
  • Mode of Payment:Maturity proceeds are credited to the SB/ CA account of the customer. In cases where there are no operative accounts of the customer, maturity proceeds can be given in cash below Rs. 20,000 above which DD/pay order will be issued.
  • Minor Accounts can be opened for individuals above 10 years subject to maximum cap of Rs. 1,00,000

Interest Payment:
  • In terms of Reserve Bank of India directives, interest shall be calculated at quarterly compounding intervals on Term Deposits and paid at the rate decided by the Bank depending upon the period of deposits. In case of Monthly Deposit Scheme, the interest shall be calculated for the quarter on compounding basis and paid monthly at discounted value. The interest on Term deposits is calculated by the Bank in accordance with the formulae and conventions advised by Indian Banks' Association.
  • Accordingly Bank has adopted following methodology.

    “In all cases of Domestic Term Deposits ( period of deposit more than a year) where the terminal quarter is incomplete, interest should be calculated for complete quarter and the actual number of days, reckoning the year 365/366 days viz the calculation of interest on such deposits should be in order of completed quarters and days.”

  • For Deposits of 2 Quarters and above, interest is calculated in quarterly compounded for complete quarters and where the terminal quarter incomplete, interest is calculated proportionately for the actual no of days reckoning the year 365/366 days.
  • The Maturity Amount mentioned in the receipt is calculated without giving TDS effect. While calculating interest for half year(Quarterly compounded), the interest calculated for previous half year (quarterly compounded) minus TDS will be added to principal amount for calculating interest for current Half Year.
  • For Short Deposits of less than 2 quarters but more than 1 quarter simple interest will be paid for complete quarter and plus interest for remaining days reckoning the year 365-366 days( without compound effect).
  • For short deposits of less than one quarter interest is calculated proportionately for actual number for days reckoning the year 365-366 days.
  • The interest on FCNR deposits shall be paid at the rates calculated in accordance with the basis prescribed by the Reserve Bank of India (RBI) from time to time for various maturities. The interest on FCNR deposits shall be paid on the basis of 360 days to a year and shall be calculated at intervals of 180 days each.
  • Deduction of Income tax at source from payment of interest on time deposits (section 194A of income tax act 1961) w.e.f 1st July 1995
  • Income Tax is to be deducted in cases where the total interest paid or credited on all time deposits in the name of a depositor with Bank as a whole, whether singly or jointly (as first named person) exceeds the specified limit per financial year as under income tax act 1961, Tax is to be deducted either at the time of credit to the account or payment of interest to the depositor whichever is earlier subject to change in limits of interest eligible for tax limit from time to time.

    In case the depositor submits following Form before end of April every year, no tax may be deducted.

  • Non-corporate customers other than Senior Citizens - Form No.15G along with PAN (w.e.f. 1st April 2010).
  • Senior Citizens i.e. individuals of the age of -60- years or more - Form No.15H along with PAN (w.e.f. 1st April 2010) w.e.f. 1st April 2010 I.T. Department has made it mandatory to quote Permanent Account No. (PAN) by deductees in all cases where TDS is applicable, failure of which would attract the TDS at a higher rate of 20% (against normal rate of 10%) or normal rate whichever is higher. Further it has also been made compulsory to mention PAN on form No.15G / 15H w.e.f. 1st April 2010.
  • The Bank will issue a system generated tax deduction certificate (TDS Certificate) for the amount of tax deducted on quarterly basis.
  • Interest earned/accrued on NRE & FCNR Term Deposits is tax free in India under the relevant provisions of Income Tax Act in India and hence no tax at source is deductible in respect of these deposits. “In case of NRO deposits” The depositor can claim the benefit of reduced rates of tax under Double Tax Avoidance Agreement (DTAA), which India has with the governments of various countries, by submitting the documents prescribed by the Bank at the beginning of every financial year.
  • However, Bank has statutory obligation to deduct tax at source on any interest paid / payable on NRO Term Deposits at the specified rates. If PAN is submitted with a declaration applicable under Double Tax Avoidance Treaty - TDS is deducted @ applicable rate for the country of residence of the customer.

  • If PAN is submitted without declaration - TDS is deducted @30%
  • If declaration is submitted without PAN - TDS @normal rate or 20% whichever is higher.
  • If PAN and declaration is not submitted - TDS @30%
  • All interest payments will be rounded off to the nearest rupee.
  • The Term Deposit account holders at the time of placing their deposits can give instructions with regard to closure of Deposit account or renewal of deposit for further period on the date of maturity. In absence of such mandate, the Bank will automatically renew the deposit as under.
  • If Deposit is placed for more than one year it will be automatically renewed for one year at the prevailing rate on due date.
  • If Deposit is placed for less than one year it will be automatically renewed for same period at the prevailing rate on due date.
  • In case, the customer wishes to make changes in the tenure or wants premature proceeds of the Term deposit, the same is allowed at the written request of the customer. In case of deposits under callable scheme premature withdrawal of bulk deposit is done as per Bank’s discretion.


Bulk Deposits (Rs. 3.00 Crores & above)
  • “Bulk Deposit” means a single Rupee Term Deposits of Rs. 3.00 Crore and above (RBI/2024-25/40 DoR.SPE.REC.No.24/13.03.00/2024-2025 dated 07.06.2024).
  • In case multiple deposits are created on same day aggregating Rs. 3.00 Crores and more, but the same mature on different dates, then it will not tantamount to splitting of Bulk Deposit. Also multiple deposits created on same day aggregating Rs. 3.00 Crores and more with same maturity period but for different specific purposes will not tantamount to splitting of Bulk Deposit, provided the customer submits supportive documents for the same.

Frequently Asked Questions (FAQs)

  • What is a MIP scheme in FD?
    • The Monthly Income Plan (MIP) scheme is intended for individuals who regularly need a source of supplemental income each month.
    • Under the MIP scheme, interest on deposit is paid at a discounted rate on a monthly basis.Interest earned on each deposit serves as an additional source of income.
  • What is the interest rate of the BOB Monthly Income Scheme Fixed Deposit?

    Please refer Bank of Baroda website for the bank’s latest rate of interest. However, as of today i.e. 25/04/2023, the interest rate on FDs for the tenure of 12 months to 120 months ranges in the bracket of 6.5 to 6.75 %.

  • What is the minimum investment amount required in MIP FD?

    The minimum amount required to invest in Baroda fixed deposit monthly income plan is Rs. 1000/- and in multiples of Rs. 100/-.

  • What is the benefit of MIP?

    The benefits of the MIP scheme are:

    • Interest on the deposit is paid at a discounted rate on a monthly basis.
    • Overdraft / Loan against deposit provided on demand up to 95% of the outstanding balance in the account as on the date of the loan.
  • How does MIP work?

    Under the MIP scheme, interest on deposit is paid on a monthly basis at a discounted rate. Interest earned on deposit becomes another source of income.

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