Catering to the financial needs of customers across India for over a century, Bank of Baroda offers customized products to meet specific requirements. Initiated by BOB, the Monthly Income Plan is tailored to help individuals supplement their monthly income and inculcate a habit of savings. The interest earned on the deposit becomes another source of income, making it ideal for the individual to be equipped in case of any emergency.
Eligibility Criteria for Bank of Baroda’s Monthly Income Plan
Individuals who wish to open an account under Bank of Baroda’s Monthly Income Plan should fulfill the following criteria in order to be eligible:
- Should be resident Indians
- Maximum age at maturity – 60 years
- Minimum amount for investment – Rs. 1000
Features of Bank of Baroda Monthly Income Plan
| Account Type | Single |
| Amount | Min – Rs 1000
Max – Rs 5 lakh |
| Rate of Interest | Min – 4% per annum
In case of senior citizens, additional 0.50% per annum |
| Period/Tenure | Min – 12 months
Max – 120 months |
| TDS | Interest rates are subject to TDS. TDS should be paid as per rules laid down by the Income Tax Department |
| Nomination | Yes |
Bank of Baroda Monthly Income Plan Interest Rate
| Tenure | Interest rate for regular customers | Interest rate for senior citizens |
| 1 year but less than 2 years | 4 % | 4.50 % |
| More than 2 years but less than 5 years | 4 % | 4.50 % |
| More than 5 years but less than 10 years | 4 % | 4.50 % |
Note: The interest rates offered by Bank of Baroda are linked to their base rate and are liable to change at their sole discretion. The above mentioned rates are for December 2015.
Required Documents for Bank of Baroda Monthly Income Plan
In order to open a monthly savings deposit account, the customer will have to provide the following documents in order to be eligible:
- Passport size photograph
- Residence proof
- Introductory letter according to the norms of the bank
Bank of Baroda Monthly Income Plan FAQs
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- How much can be withdrawn?Since there are no formalities as concerns with overdrafts or withdrawals, a maximum of 95% of the amount can be withdrawn.
- Are premature withdrawals permitted under this scheme?Yes, premature withdrawals are generally permitted, unless stated otherwise. There is no penalty levied by the bank in case of premature payment deposits of up to Rs 5 lakh, provided it has completed the minimum term of 12 months.
- Is interest calculated on premature withdrawal?An interest of 4% is applied on general deposits. Senior citizens will earn an additional 0.50% interest rate on the savings deposit. An interest rate of 1% less than the applicable rate, will be calculated on premature withdrawal of deposits.
- What documents should be submitted to open an account under this scheme?Individuals who wish to open this savings deposit account need to submit the following documents.
- Two recent passport size photographs
- Residence proof
The individual who wishes to open this account should be introduced by a person known and acceptable to the bank.
- Is the money deposited under this scheme secure?Yes. This scheme, along with security for money, provides the comfort of liquidity.