Monthly Income Plan

Secure Your Money
And Watch It Grow Too.

Baroda Fixed Deposit Accounts

Monthly Income Plan

Getting a guaranteed monthly income is an important goal for people, especially retired senior citizens. Bank of Baroda Monthly Income Plan is a fixed deposit plan that pays monthly interest to give you a fixed income every month to meet your expenses. You can invest funds that are lying idle in a regular monthly income plan that will provide a degree of income certainty every month.

Fixed Income

    • One benefit of a monthly income plan in banks is that it provides a fixed monthly income. Depending on the amount deposited, the monthly income will vary. But investing in a monthly income plan fixed deposit, is a better use for idle cash. The income is guaranteed for the duration of the deposit which brings financial certainty.

Additional Interest for senior citizens

    • The Bank of Baroda Monthly Income Plan provides an additional 0.5% rate of interest for senior citizens. They can take advantage of the increased rate of interest to get an excellent rate for a monthly income scheme.

Loan/Overdraft feature:

    • In case of fund requirements, it is possible to withdraw up to 95% of the Monthly income plan fixed deposit amount. This helps to meet urgent fund requirements.

No TDS if Form 15G/15H submitted:

    • Filling these forms with the bank ensures no TDS is deducted on monthly interest income payments, providing a greater income at your disposal.

Auto renewal:

  • The monthly income plan can be auto renewed for a minimum of 12 months.

Minimum Investment

    • The Bank of Baroda monthly income plan requires a minimum investment of Rs. 1,000. There is no maximum limit of fixed deposits made as a part of this plan.

Interest payment

    • Interest on this fixed deposit is credited every month to the bank account of the deposit holder. This ensures a fixed monthly income for the duration of the deposit.

Premature closure

    • Premature closure of the monthly income fixed deposit is allowed provided the deposit has been placed for a tenure of more than 12 months. Bank of Baroda will not charge penal interest if the fixed deposit amount does not exceed Rs. 5 lakhs and it has been kept for a minimum of 12 months. In case of deposits more than Rs. 5 lakhs kept for less than 12 months, a penal interest of 1% will be charged for premature closure.

Nomination facility

    • These deposits can be nominated. It is possible to use the monthly income plan fixed deposit as a means of dividing wealth among the family by making use of the nomination facility

Tenure of deposit

  • The minimum tenure of such deposits is 12 months and the maximum tenure is 120 months. However, Bank of Baroda can accept deposits for a period lesser than 12 months in certain cases.
  • Deposit account can be opened with minimum amount of Rs. 1,000/- and subsequent deposits in multiples of Rs.100/-.
  • Deposit Tenure:
    • Minimum - 12 months.
    • Maximum - 120 months.
  • Interest will be paid on monthly basis at discounted rate.
  • No penalty for premature payment will be levied in case of premature payment of deposits up to Rs. 5 Lakhs provided it remained with the Bank for a minimum period of 12 months.
  • On pre-matured withdrawal of your deposits, interest will be calculated at 1% below the rate applicable for the period of deposits.
  • Interest payments are subject to TDS (Tax Deducted at Source).
  • Documents required:
    • Passport size photograph
    • Proof of residence
    • An Introduction as per bank's norms

Eligibility

All Individuals and Non-individuals

Amount of Deposit

  • Minimum
    • Rs.1000/- and in multiples of Rs.100/-
  • Maximum
    • No upper limit

Tenure of Deposit

Minimum : 12 Months

Maximum : 120 Months

Rate of interest

As per the maturity period of the deposit

Payment of Interest

Interest will be paid on monthly basis.

Premature Closure

No penalty for premature payment will be levied in case of premature payment of deposits upto Rs.5 lacs provided it remained with the bank for a minimum period of 12 months

For deposits more than Rs.5 lac and less than Rs.1 crore, which remained for less than 12 months, interest should be paid after deducting penalty of 1% from such applicable rate or the contracted rate whichever is lower in the cases which are subject to charging penalty

Auto-Renewal

Deposit will be auto-renewed for a period of minimum 12 months

Availability of Loan/ Overdraft

Overdraft / Loan against deposit provided on demand upto 95 % of the outstanding balance in the account as on date of loan. Interest will be charged as per Bank’s extant guidelines from time to time

Others

Accepted as security by Government departments

Accepted as margin for non-fund based activities

  • Rate of Interest to Senior Citizen: An Additional interest @ 0.50 % is payable for deposits below Rs.1 crore only.
  • Nomination Facility: Nomination facility will be available
  • Tax Deduction at Source: TDS will be deducted as per income Tax rules. No TDS will be deducted if a person submits form 15G/ 15H as applicable.
  • Method of Calculation of Interest on or before Maturity: “In all cases of domestic term deposits where the terminal quarter is incomplete, interest should be calculated for the actual number of days, reckoning the year 365/366 days viz the calculation of interest on such deposits should be in order of completed quarters and days.” Interest will be calculated and compounded at quarterly rests.
  • TDS Certificate: TDS certificate will be provided to all customers.
  • Overdue Deposit: If renewal request is received after date of maturity, such overdue deposits will be renewed with effect from date of maturity at interest rate applicable as on due date provided such request is received within 14 days of maturity of deposit, after which interest for overdue period will be paid at the rate decided by Bank from time to time.
  • Advance against Deposits: This facility is not available to Minor account in single name and HUF. If the interest is not deposited for more than 2 quarters, term deposit will be apportioned immediately.
  • Interest Certificate available at request of customer
  • Deposit Certificate – Term Deposit Receipt is provided
  • Term Deposits can be transferred from one branch to other branch at the request of the customer.
  • Mode of Payment: Maturity proceeds are credited SB/ CA account of the customer. In cases where there are no operative accounts of the customer, maturity proceeds can be given in cash below Rs.20,000 above which DD/ Pay Order will be issued.
  • Minor Accounts can be opened for individuals above 10 years subject to maximum cap of Rs.1,00,000/-

Bulk Deposits (More than Rs.1 crore)

  • Bulk deposits can be opened under any of the above mentioned schemes under retail time deposits.
  • Bank reserves the right to accept the deposits above Rs.25 crores.
  • Rate of interest for Bulk deposits is different from retail time deposits and is regularly updated on Bank’s website
  • Bank reserves the right to accept request for premature payment as the same is agreed at the time of account opening by the customer. On acceptance of premature payment request, the penal clause will be same as in schemes under retail time deposits.

Opening up a monthly income plan with Bank of Baroda is very simple. You can visit any branch for a form or call Bank of Baroda for more details.

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