Bank of Baroda has launched a unique alternative to the traditional fixed deposit (FD) — bob Liquid Fixed Deposits. The fixed deposit plans will cater to customers seeking innovative deposit solutions that blend assured & competitive returns, liquidity and flexibility.
Bank of Baroda’s latest offering combines the benefits of earning higher returns from fixed deposits with the convenience of easy liquidity associated with a savings account, the public sector bank said in a statement.
Interest rates for bob Liquid Fixed Deposits
The bank will offer general customers an FD rate of 6.85% on a 1-year deposit. Senior citizens will be offered 7.35% on a 1-year FD and 7.40% on a 5-year deposit.
The liquid FD plans give depositors the flexibility of a partial withdrawal facility without having to close the entire FD, which ensures that depositors can address their urgent financial needs as and when required, while the balance funds continue to earn interest at the contracted rate in the same fixed deposit, it added.
This FD plan will ensure that depositors get the benefits of higher returns, lower prepayment penalties, and quick access to funds when needed, according to the bank.
FD customers look for deposit products that prioritise both returns and liquidity
“Customers are in search of more flexible deposit products that prioritise both returns and liquidity. Whether it’s to address an unexpected emergency or meet an unforeseen expense, the bob Liquid FD gives quick access to part fund withdrawals without having to close the FD from where the partial withdrawal is made,” it said.
For example, in a bob Liquid FD of Rs 5 lakh, a customer can prematurely withdraw Rs 1 lakh. The remaining deposit of Rs 4 lakh will continue to earn interest at the original rate, and the customer will have to pay the prepayment penalty, if applicable, on the withdrawn amount of Rs 1 lakh only, and not on the entire amount.
Other key features of bob Liquid FD:
The FD is designed with customer-centric features, including flexible deposit amounts starting at Rs 5,000, tenure options ranging from 12 to 60 months and partial withdrawals accepted in multiples of Rs 1,000. Further, no pre-payment penalty is levied for premature withdrawals on FDs up to Rs 5 lakh that have completed a tenor of at least 12 months.
Minimum Deposit Amount: Rs 5,000/- (and in multiples of Rs 1,000/- thereafter)
Maximum Deposit Amount: No upper limit
Minimum duration: 12 months
Maximum Duration: 60 Months
Premature Payment/Partial Withdrawal Facility: Allowed, in multiples of Rs 1,000/-, as many times as required during the tenure of the FD
Pre-payment penalty:
No penalty is levied for premature payments in case of term deposits up to Rs 5 lakh that have completed a minimum period of 12 months.
Fixed Deposit below Rs 1 crore – Penalty of 1% from the applicable interest rate for the completed period or the contracted rate whichever is lower.
Fixed Deposit of Rs 1 crore and above – Penalty of 1.5% from the applicable interest rate for the completed period or the contracted rate whichever is lower.