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Bank of Baroda RD Interest Rates 2024

Last Updated : 31 Jan, 2024
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The recurring deposit of Bank of Baroda is one of the bank’s most popular schemes, allowing customers to save a portion of their monthly income and reap benefits over the years. Bank of Baroda was founded on July 20, 1908, by the Maharaja of Baroda, Maharaja Sayajirao Gaekwad III, and nationalized on July 19, 1969. It is presently India’s third-largest public sector bank. The attractive BOB RD interest rates along with additional surplus benefits, make it profitable to invest in BOB RD. A recurring deposit (RD) account with the Bank of Baroda can be opened for a tenure of 6 months to ten years. General citizens can open a Recurring Deposit account with the bank and earn interest ranging from 4.30% p.a. to 5.75% p.a . Citizens above the age of 60 are granted an extra interest rate of 0.50% on all tenures.

Bank of Baroda RD Interest Rates 2024


Rate of Interest for General Citizens
(Below 60 Years of Age)

Rate of Interest for Senior Citizens
( Above 60 Years of Age)

180 days



181 days – 270 days



271 days – 364 days



1 year



1 year 1 day – 400 days



401 days – 2 years



2 years 1 day to 3 years



3 years 1 day to 5 years



5 years 1 day to 10 years



Features of Bank of Baroda Recurring Deposit

1. Initial Investment: The minimum monthly installment is ₹50 and subsequent payments are in multiples of 100.

2. Limit: The maximum monthly installment amount has no upper limit.

3. Tenure: The term can be as short as six months (and then in increments of three months) or as long as ten years.

4. TDS Deduction: Yes, under the Income Tax Act of 1961, the interest generated on the RD account is taxable. If the total predicted interest exceeds ₹1000 in a fiscal year, TDS is deducted, i.e. 10% if the PAN information is given and 20% if pan details not given.

5. Set-Up Standing Instructions: Paying the monthly payments (for RD) is as simple as with a one-time standing instruction from your Bank of Baroda Savings Account.

How to Open an RD Account in Bank of Baroda?

Individuals can open an Bank of Baroda Recurring Deposit account.

1. Offline Process

Collect all of the documentation required for opening an Bank of Baroda RD account and go to a local bank to request the intimation procedure. Throughout the application process, you will be assisted by an Bank of Baroda representative. It is advised that you bring photocopies of your documentation with you.

2. By Net Banking

  • Go to the official website of Bank of Baroda.
  • Hover over the ‘Login’ button at the top of the page. Select ‘Login’ from Internet Banking’s ‘Personal’ section.
  • Select “Create Recurring Deposit.”
  • Complete the form with the depositor’s and nominee’s details, if suitable.
  • Once confirmed, the deposit amount will be deducted from the customer’s savings account, and a receipt will be emailed (for those who have registered for e-statement) or sent to the customer via post.

3. By Mobile Banking

  • Open Bank of Baroda Mobile, the bank’s mobile application.
  • Click on the ‘Open RD’ button.
  • Upon confirmation, the chosen amount will be deducted from the associated savings account and an RD account will be opened promptly.

If you have opted for an e-statement, you will receive a confirmation email; otherwise, a physical statement will be sent to you.

How to Calculate RD Interest Rates in Bank of Baroda?

The RD interest rates on Bank of Baroda recurring deposits are compounded quarterly. This is the formula to calculate the maturity value.


Here ,

  • A Represents the Maturity Amount,
  • P Represents the Recurring Deposit,
  • R Represents the Rate of Interest,
  • T Represents the Tenure,
  • N represents the number of compounding interest.


Akash deposits ₹500 each month for 9 months. The rate of interest applicable Recurring Deposit account is 4.65% for regular RD. What will be the sum on maturity ?



A=4500(1+\frac{4.65}{3})^{(3\times \frac{9}{12})}

A = ₹4,588

Hence, the interest income will be generated from the recurring deposit is ₹88.

Eligibility Criteria to Start RD Account with Bank of Baroda

1. The person applying must be an Indian resident or a member of a HUF (Hindu Undivided Family).

2. NRIs can open an RD account using their NRO or NRE accounts.

3. A minor can open an Bank of Baroda RD account under parental guardianship to look after your funds.

Documents Required for Starting an RD Account

For Opening an RD in Bank of Baroda Investors must ensure that they have the following documents with them :

1. Proof of Identity

  • Pan card
  • Voter ID
  • Aadhaar card
  • Ration card including a photograph
  • Driving license
  • Senior citizen ID
  • Passport

2. Proof of Address

  • Electricity bill
  • Telephone bill
  • Bank statement with cheque
  • Passport
  • Identity card issued by Post Office

Types of Bank of Baroda RD Accounts

1. BOB Systematic Deposit Plan

It is a simple monthly plan that allows users to save every month while earning substantial returns. The interest earned by this form of RD plan is compounded quaterly. The BOB monthly recurring deposit scheme is quite popular among residents due to its flexible liquidity options.

Investment Amount

Minimum Deposit: ₹50/month for rural and semi-urban branches and ₹100/month for urban and metro branches
Maximum Deposit: No upper limit


6 months to 10 years



OverDraft Facility

It offers Loan/Overdraft facility up to 95% of the deposit amount

Penalty for Late Deposits

It will be ₹1 for ₹100 per month, irrespective of the tenure


Indian residents 

Interest Payout

In this scheme, Interest will be compounded quarterly and paid on maturity

2. Flexible Recurring Deposit Scheme

The BOB Flexible Recurring Deposit Scheme, also known as the Yatha Shakti Jama Yojana, is another type of recurring deposit that offers half-yearly interest payment options. Under this scheme, interest is compounded semi-annually and credited only in September and March.

Investment Amount

Minimum Deposit: ₹100/month

Maximum Deposit: The monthly deposit amount can only be extended up to three times the primary installment, with a maximum of ₹10,000/month.


12 months – 120 months



OverDraft Facility

It offers Loan/Overdraft facility up to 95% of the deposit amount.

Penalty for late deposits

No penalty


Indian residents, minors, joint stock companies, clubs, educational institutions and associations,senior citizens,  partnerships

Bank of Baroda RD Premature Withdrawal Rules

Premature choices for withdrawals were offered by Bank of Baroda for its recurring deposits. If the depositor chooses to withdraw the deposited money prior to the specified period of time, there will be a 1% deduction from the appropriate interest rate based on the selected RD plan. There is no facility for partial withdrawal.

Frequently Asked Questions (FAQs)

1. What is a Recurring Deposit (RD)?


RD is a savings option where you deposit a fixed amount every month for a predetermined period, and you earn interest on the cumulative deposit.

2. How do I open an RD account with Bank of Baroda?


The process usually involves visiting the bank branch, filling out the RD account opening form, and providing the necessary documents.

3. What is the tenure of an RD account, and can it be modified once opened?


RDs typically have fixed tenures, and the duration is decided at the time of account opening. The tenure cannot usually be modified once the account is opened.

4. Can I prematurely withdraw my RD before the maturity period?


Yes but there will be a 1% deduction from the appropriate interest rate based on the selected RD plan if you prematurely withdraw your RD.

5. How is the interest on RD calculated?


Interest on RD is generally calculated using the quarterly compounding method.

6. Is there a provision for a nominee in RD accounts?


Yes, you can usually nominate a person to receive the RD amount in case of your demise. Nomination details can be updated at the time of account opening or later.

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