Bank of Baroda Introduces Special ‘bob Utsav Deposit Scheme’ for the Festive Season

Bank of Baroda (BoB) has introduced a new 400-day term deposit scheme known as the ‘bob Utsav Deposit Scheme’, aimed at offering higher interest rates to various categories of depositors during the festive season. This scheme not only provides competitive interest rates for general depositors but also caters specifically to senior and super senior citizens, making it a beneficial investment option for a wide range of customers.

Key Features of the ‘bob Utsav Deposit Scheme’

Launched as a limited-period offer, the ‘bob Utsav Deposit Scheme’ is designed to capitalize on the current interest rate cycle, offering competitive rates for a specific 400-day term. The scheme is applicable to fixed deposits below ₹3 crore and presents a lucrative opportunity for both individual depositors and those looking for systematic savings options.

The interest rates offered under this scheme vary based on the category of the depositor:

• General Citizens: The scheme provides an interest rate of 7.30%.
• Senior Citizens (aged 60 and above): Eligible for a higher interest rate of 7.80%.
• Super Senior Citizens (aged 80 and above): Benefiting from the highest interest rate in the category, 7.90%.
• Non-Callable Deposits: Offering interest rates as high as 7.95%, making it an attractive option for customers who do not require premature withdrawal.

Increase in Term Deposit Interest Rates

In addition to the bob Utsav Deposit Scheme, Bank of Baroda has announced an increase in interest rates on term deposits (TDs) for select tenors. The interest rates for term deposits in the 3 years to 5 years bucket have been increased by 30 basis points (bps), rising from 6.50% to 6.80%. This change benefits both existing and new depositors, offering better returns over the medium term.

Special Provisions for Super Senior Citizens

For the first time, Bank of Baroda has introduced a Super Senior Citizen category in its term deposits. Under this new provision, customers aged 80 years and above can avail an additional 10 bps interest rate over the standard senior citizen rate for deposits with a tenor above 1 year and up to 5 years. This category ensures that the most senior depositors receive the highest possible returns on their investments, reflecting the bank’s commitment to catering to diverse customer needs.

Systematic Deposit Plan (SDP)

The Systematic Deposit Plan (SDP) is another attractive option available to customers, especially those seeking to build their savings over time. The SDP functions like a recurring deposit scheme, allowing individuals to make monthly contributions, which will now benefit from the higher interest rates offered for the 3- to 5-year period.

Under the bob SDP, customers can lock in higher interest rates for each monthly contribution, securing better returns over the selected tenor. The scheme offers assured returns for depositors, encouraging regular savings through small monthly investments.

Earth Green Term Deposits

Additionally, BoB has increased interest rates on its ‘Earth Green Term Deposits’ by 30 bps for select tenors. The Earth Green Term Deposits promote environmental sustainability while providing depositors with attractive interest rates, making it a responsible yet lucrative investment option.

Statement from Bank of Baroda’s MD & CEO

Debadatta Chand, Managing Director & CEO of Bank of Baroda, expressed optimism about the new deposit schemes, stating, “With the Utsav Deposit Scheme, depositors can obtain a higher rate of interest at this point in the interest rate cycle.” Chand emphasized that the bank’s strategy is to cater to two distinct groups of customers: those looking for competitive and assured returns over the medium-term and those looking to build their savings over time through regular contributions, such as in the bob SDP. He highlighted the importance of seizing the opportunity to lock in higher interest rates, especially during a time when interest rates are favorable for depositors.

Summary of the News