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Bank of Baroda, one of the leading public sector banks of the country, has come up with a very attractive fixed deposit scheme for bank investors who want safe and guaranteed returns. Name of this special retail fixed deposit scheme of the bank ‘bob Golden Goal Deposit Scheme’ (555 Days FD) Is. This scheme is considered to be most suitable for those investors who want to earn maximum interest by investing their savings in lump sum for a period of about one and a half years (1 year 6 months 7 days). For retail depositors and pensioners who are away from the vagaries of the stock market, the scheme not only provides sovereign grade protection but also ensures the most competitive returns in the current interest rate environment. A lot of enthusiasm is being seen among the customers regarding this scheme in branches across the country from Lucknow, Kanpur, Delhi, Mumbai.
Bank of Baroda has introduced this 555-day special FD in two main formats—Callable and Non-Callable.
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General Public: Standard callable FD of 555 days to general customers 6.75% Interest is being given every year. At the same time, if common citizens choose non-callable FD without pre-mature withdrawal, then they will have to pay 0.05% additional i.e. 6.80% Will get interest.
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Senior Citizens – 60 years or more: Resident senior citizens above 60 years of age get an additional premium of 0.50% over the normal rates. Under this on callable FD 7.25% And in non-callable option 7.30% Attractive annual interest of Rs.
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Super Senior Citizens – 80 years or more: Very senior citizens above 80 years of age are also being given 0.10% extra benefit over the senior citizen rate. i.e. in callable option these 7.35% And bank maximum in non-callable FD 7.40% Offering annual interest.
While investing in this scheme, it is very important for investors to understand the difference between callable and non-callable. In callable FD, the account holder gets the facility that in case of any medical emergency or sudden need, he can withdraw his deposit prematurely (Premature Withdrawal) even before the completion of 555 days, for which a nominal penalty is deducted. At the same time, the bank gives 0.05% more interest in non-callable FD because there is no permission to withdraw money before completion of maturity i.e. 555 days. Apart from this, as per the guidelines of the bank, no loan or overdraft facility can be availed on non-callable deposits. So only if you are not going to need the money between the tenures, it would be wise to opt for the non-callable option and avail the highest leverage of 7.40%.
If a super senior citizen deposits an amount of ₹ 5,00,000 in this 555 days non-callable FD, then based on quarterly compounding interest at the rate of 7.40%, the total interest in 555 days will be more than ₹ 58,000 and the maturity amount will reach approximately ₹ 5.58 lakh. Whereas on an investment of ₹ 10,00,000, a super senior citizen will get a total net interest of more than ₹ 1.16 lakh. At the same time, senior citizens above 60 years of age get interest profit of about ₹ 1.14 lakh in 555 days even at the normal rate of 7.25%. Being a government bank, this deposit also automatically gets 100% security guarantee on principal and interest up to ₹ 5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC).
This special scheme is applicable for retail term deposits of less than Rs 3 crore. Under this scheme, any resident of the country can open an Indian account, while NRE and NRO customers can also take advantage of it. However, the additional interest available to senior and super senior citizens is valid only for resident Indians. In case of callable FD, if premature closure of deposits less than Rs 1 crore is done, a penalty of 1% of the applicable rate or contracted rate is deducted. Investors can open this 555-day FD account instantly with a minimum amount of just ₹1,000 by visiting any nearest Bank of Baroda branch or from the comfort of their home through ‘bob World’ mobile banking app and net banking.