Bank of Baroda Tiranga Deposit Scheme calculation: Leading public sector lender Bank of Baroda (BoB) has launched the ‘Baroda Tiranga Deposit Scheme’ for a limited time period. This is a special fixed deposit scheme offering a higher interest rate to subscribers. In a statement, Bank of Baroda said the new deposit scheme is available in two tenor buckets offering interest rates of 5.75% per annum for 444 days and 6.00% per annum for 555 days.
Key dates and details
The scheme opened on 16th August 2022 and it will be available till 31st December 2022. The interest offered under the Tiranga Deposit scheme will be applicable on retail deposits below Rs 2 crore.
BoB said senior citizens will earn an additional interest rate of 0.50% per annum under the Tiranga Deposit scheme while Non-Callable deposits will get 0.15% per annum. extra.
Non-callable fixed deposits come with a lock-in period. The account holder cannot withdraw money from a non-callable term deposit before the end of maturity due date, with some exceptions like bankruptcy, winding up of business, death etc. The minimum amount required to be deposited in a non-callable fixed deposit is generally higher than callable term deposits.
Baroda Tiranga Deposit Scheme Calculation: Example
As per the Tiranga Deposit scheme details, investors can get 6.15% interest in non-callable deposit for 555 days tenure. The scheme provides 0.5% extra interest for senior citizens and 0.15% additional interest for non-callable deposits. This means senior citizens opening a non-callable deposit under this scheme can get up to 6.65% interest in 555 days.
Calculation shows a non-callable deposit of Rs 1 lakh for 555 days would turn into more than Rs 1.26 lakh at the time of maturity. For senior citizens making a non-callable deposit of 555 days, the maturity amount would be over Rs 1.28 lakh.
BoB has launched the scheme to celebrate 75 years of India’s independence.
“As India marks 75 years of independence, we are delighted to give consumers one more reason to celebrate. The Baroda Tiranga Deposit Scheme offers a higher rate of interest and the flexibility to choose from two tenures, backed by one of India’s leading and most trusted banks,” Ajay K. Khurana, Executive Director, Bank of Baroda, said in the statement.