Bank of Baroda Monthly Income Plan

Bank of Baroda Monthly Income Plan is a guaranteed income plan that offers fixed income every month to depositors. You can invest as little as Rs. 1,000 with no maximum capping on the investment amount. If you opt for this Bank of Baroda (BOB) Fixed Deposit (FD), then you will receive a monthly interest on the deposit amount. This will help you earn on a timely basis, and fulfill your expenses. Thus, the BOB Monthly Income Plan FD paves a way to financial security.

In this post, we will discuss Bank of Baroda Monthly Income Plan features, eligibility criteria, interest rate, documents required for Fixed Deposit, premature closure, benefits, and FAQs.

Features of Bank of Baroda Monthly Income Plan

Here are the features:

1. Fixed Income

You will earn a fixed income on the deposited amount. The earnings will depend on the deposit amount. The higher the deposit, the greater is the income. This way you can use idle cash to generate a guaranteed income based on the tenure of FD.

2. Auto-Renewal

The bank can auto-renew the Monthly Income Plan for at least 12 months.

3. Loan/Overdraft

You can withdraw up to 95% of the outstanding balance in the fixed deposit whenever you need funds. So, you can arrange cash in case of urgent requirements.

4. Higher Interest for Senior Citizens

The BOB Monthly Income Plan offers a 0.5% additional interest rate on deposits under Rs. 1 crore for senior citizens. The increased rate provides customers over 60 years of age, a better income and financial security.

5. No TDS If You Submit Form 15G/15H

If you fill these forms, then the bank will not deduct TDS on the monthly interest payment. So, if you are eligible for tax deductions, then do not forget to submit Form 15G/15H in time to BOB. If TDS is deducted, then you will receive its certificate.

Eligibility Criteria for BOB Monthly Income Plan

• All individuals and non-individuals can consider this FD
• You have to deposit in the multiples of 100
• The minimum deposit amount is Rs. 1,000
• There is no upper limit for how much you can invest

BOB Monthly Income Plan Interest Rate

Here is the Bank of Baroda Monthly Income Plan Rates:

NOTE: The BOB FD Interest Rates may change as per the bank’s discretion

Documents required for Bank of Baroda Monthly Income Plan

For opening a monthly income savings deposit account in Bank of Baroda, the customer has to provide verified documents:

• A letter of introduction
• Identity proof (Aadhaar Card/Voter ID Card/PAN Card/Passport, etc)
• Address proof (not required if identity proof has the latest address, otherwise you have to submit a separate proof)
• A passport-sized photograph

Premature Closure of Bank of Baroda Monthly Income Plan

Here are the terms and conditions:

• You can close the FD if the same has been held with the bank for more than 12 months
• BOB does not apply any penal interest if the FD amount is less than Rs. 5 lakhs and retained for at least 1 year
• If the deposit held was more than Rs. 5 lakhs and less than Rs. 1 crore, for tenure less than 12 months, then the bank will apply 1% penal interest on the maturity amount
• For premature closure of FD amounting to Rs. 1 crore and above, you have to serve a notice of 31 days to the bank
• A penal interest of 1.50% will apply on the rate of interest of the FD for the tenure it is held with the bank

Benefits of Bank of Baroda Monthly Income Plan

Here are the benefits:

1. Minimum Investment Maximum Return

As discussed, you can start an investment with only Rs. 1,000. And there is no limit on the amount you wish to invest. This gives you a good opportunity to maximize your money.

2. Deposit Tenure

The minimum and maximum tenures are 12 months and 120 months, respectively. In some cases, the bank may consider the fixed deposit of a lower tenure than a year.

3. Payment of Interest

The BOB Monthly Income Plan Interest will accrue to the deposit holder’s bank account every month. Thus, you can receive an assured monthly income regularly.

4. Nomination Facility

You can add a nominee to the BOB Fixed Deposit. Also, you should use this facility.

Frequently Asked Questions about BOB Monthly Income Plan

Here is the Bank of Baroda Monthly Income Plan FAQs: