Bank of Baroda offers special FD rates for senior citizens. People above 60 years get up to 7.20% interest. This is higher than regular FD rates.
The scheme helps retired people earn steady income. Every month or quarter, they get interest payments. This money helps pay bills and expenses.
Public sector banks like BOB are trusted by seniors. Capital safety matters more than high returns. Peace of mind is the biggest benefit here.
Who Can Open This FD Account?
Any person aged 60 years or above qualifies. Both single and joint accounts are allowed. The senior citizen must be primary account holder.
You need basic documents like Aadhaar and PAN card. Age proof is mandatory for senior citizen benefits. Bank account with BOB helps but not compulsory.
NRIs and resident Indians both can apply. The scheme welcomes all eligible senior citizens. No complicated conditions or hidden requirements exist.
How Much Interest Rate Do You Get?
Regular senior citizens get up to 7.20% interest rate. This rate applies to specific tenure periods. Longer deposits usually earn better rates.
The rate is 0.50% extra compared to regular FDs. This additional benefit is only for seniors. Younger people get lower interest on same deposit.
Rates may change based on RBI policy updates. Current rates are valid for 2026 now. Check BOB website for latest rate information.
What Are Different Tenure Options Available?
Short-term deposits start from 7 days minimum. Medium-term options range from 6 months to 2 years. Long-term FDs go up to 10 years.
Different tenures have different interest rates obviously. Usually 3 to 5 years give best returns. Match your tenure with actual money needs.
You can renew FD after maturity automatically. Or withdraw money if you need it. Flexible options suit different retirement situations well.
Monthly Income or Lump Sum Payment?
Senior citizens can choose monthly interest payout. This works like pension income every month. Bills and expenses become easier to manage.
Quarterly payout option is also available here. Some people prefer getting money every three months. This reduces number of bank transactions.
Cumulative option means interest gets added to principal. You get everything together at maturity time. Best for those who don’t need immediate income.
How Does This Compare to Other Schemes?
Post Office SCSS gives around 8% interest rate. But investment limit is only Rs 30 lakh. BOB FD has no such upper limit.
Private banks sometimes offer slightly higher rates. But public sector banks feel safer to seniors. Trust and stability matter more than extra 0.2%.
National Savings Certificate and bonds are other options. But FDs offer better liquidity and flexibility. You can break FD in emergency situations.
What Is the Minimum and Maximum Deposit?
Minimum deposit amount is usually Rs 1000 only. Anyone can start with this small amount. No need for huge savings to begin.
There is no maximum limit for deposits here. You can invest lakhs or even crores. Deposit insurance covers up to Rs 5 lakh though.
Split your money across different FDs if very large. This spreads risk and gives flexibility too. Different maturity dates help manage cash flow.
Can You Break FD Before Maturity?
Yes, premature withdrawal is allowed with penalty. Bank deducts around 1% from interest rate. You still get most of your returns.
Emergency medical or family expenses justify breaking FD. The money is yours whenever you need. But try to plan properly to avoid this.
Loan against FD is better alternative sometimes. You get money without breaking the deposit. Interest rate on loan is slightly higher only.
How Are Taxes Handled on FD Interest?
Interest earned from FD is fully taxable income. Add it to your yearly income for ITR. Tax slab depends on your total income.
TDS applies if interest crosses Rs 50,000 yearly. This limit is Rs 50,000 for senior citizens. Banks deduct 10% TDS automatically then.
Submit Form 15H to avoid TDS deduction. This works if your income is below taxable limit. File ITR even if no tax due.
What Documents Do You Need?
Age proof is most important document needed. Aadhaar card, PAN card, and passport work. Birth certificate or school leaving certificate also accepted.
Address proof like electricity bill or Aadhaar required. Recent passport-size photographs are mandatory too. These are standard banking requirements everywhere.
Existing BOB account holders need fewer documents. Opening new account takes slightly more paperwork. Visit branch with all documents together.
Disclaimer: This article provides general information about Bank of Baroda Senior Citizen FD Scheme 2026. Interest rates, terms, and conditions may change without notice based on RBI policies and bank decisions. Always verify current rates and eligibility directly from Bank of Baroda official website or nearest branch before investing. This is not financial advice. Consult a certified financial advisor for personalized retirement planning.