Bank of Baroda, a leading public sector bank in India, has introduced an innovative fixed deposit scheme known as BOB Liquid FD. This unique financial product is designed to provide investors with the dual benefits of high returns and liquidity. Unlike traditional fixed deposits (FDs), where premature withdrawal requires breaking the entire deposit, BOB Liquid FD allows partial withdrawals while keeping the remaining balance intact. This makes it an ideal choice for individuals, businesses, and organizations seeking financial flexibility without compromising on earnings.
Who Can Invest in BOB Liquid FD?
BOB Liquid FD is available to a broad spectrum of investors, making it accessible to various types of account holders, including:
Individual Account Holders (Adults & Minors)
Joint Account Holders
Hindu Undivided Families (HUFs)
Sole Proprietors
Partnership Firms
Companies & Corporate Entities
Trusts, Societies, Associations, and Clubs
However, Non-Resident Indians (NRIs) and banks are not eligible for this scheme. Opening an account is hassle-free and can be done via Bank of Baroda’s digital platforms such as the BOB World App, Internet Banking, or by visiting a bank branch.
Investment Details and Deposit Limits
The key details of the BOB Liquid FD scheme are outlined below:
| Feature | Details |
|---|---|
| Minimum Deposit | ₹5,000 |
| Maximum Deposit | No upper limit |
| Tenure Options | 1 to 5 years |
| Interest Rates | Based on prevailing FD rates |
| Deposit Category | Retail (Below ₹3 Cr), Bulk (₹3 Cr & above) |
As per RBI guidelines, deposits below ₹3 crore fall under the retail deposit category, while those ₹3 crore and above are considered bulk deposits.
Key Features and Benefits of BOB Liquid FD
1. Partial Withdrawals Without Breaking the FD
One of the standout features of BOB Liquid FD is the ability to make partial withdrawals in multiples of ₹1,000. Unlike conventional FDs, which require complete liquidation for premature withdrawal, this scheme allows investors to access funds without affecting the remaining deposit.
2. Higher Returns with Liquidity
BOB Liquid FD offers better interest rates than a savings account while providing the flexibility to withdraw funds when required. This makes it a smart investment for individuals and businesses looking to earn competitive returns while maintaining liquidity for emergency needs.
3. Convenient Digital Banking Access
Customers can open, manage, and withdraw funds through the BOB World App, Internet Banking, or by visiting a Bank of Baroda branch. This digital accessibility ensures seamless banking and hassle-free fund management.
4. Security and Reliability
As a government-backed institution, Bank of Baroda guarantees high-level security for customer deposits. Investors can rest assured that their funds are safe and earning stable returns with a reputed public sector bank.
5. Tax Implications on Interest Earned
Interest earned on BOB Liquid FD is subject to Tax Deducted at Source (TDS) as per the Income Tax Act. Just like other fixed deposits, investors must account for TDS when planning their tax filings.
Why Choose BOB Liquid FD?
BOB Liquid FD is an excellent investment option for those seeking liquidity along with high returns. Here’s why this scheme stands out:
🔹 Emergency Fund Accessibility – Withdraw funds as needed without closing the entire FD.
🔹 Higher Interest Earnings – Enjoy better returns compared to a regular savings account.
🔹 Flexible Investment Options – Start with just ₹5,000 and select a tenure between 1 to 5 years.
🔹 Safe and Secure – Invest with confidence in a trusted public sector bank.
🔹 Easy Online Management – Open and manage deposits conveniently through digital platforms.
How to Open a BOB Liquid FD?
Opening a BOB Liquid FD is simple and can be done through multiple channels:
- BOB World App: Download the app, log in, and navigate to the FD section to open an account.
- Internet Banking: Visit the Bank of Baroda Internet Banking portal and follow the steps to open an FD online.
- Branch Visit: Walk into any Bank of Baroda branch with the required documents to open an FD with assistance from bank staff.
Final Thoughts
BOB Liquid FD by Bank of Baroda is a game-changing investment solution, offering the best of both worlds – attractive FD returns and the liquidity of a savings account. With its partial withdrawal feature, digital banking convenience, and secure investment options, this scheme is ideal for individuals, businesses, and organizations looking to optimize their savings while maintaining easy access to funds.
Open your BOB Liquid FD today and enjoy a seamless, profitable, and stress-free banking experience!
Frequently Asked Questions (FAQs)
1. How is BOB Liquid FD different from a traditional fixed deposit?
Unlike traditional FDs, where premature withdrawal requires closing the entire deposit, BOB Liquid FD allows partial withdrawals in multiples of ₹1,000, ensuring continued interest accrual on the remaining balance.
2. Can NRIs invest in BOB Liquid FD?
No, this scheme is only available to resident individuals, businesses, and organizations. NRIs are not eligible.
3. What are the tax implications of this FD?
Interest earned on BOB Liquid FD is subject to TDS (Tax Deducted at Source) as per the Income Tax Act. Investors must report this income while filing tax returns.
4. What happens if I make a partial withdrawal?
When a partial withdrawal is made, the remaining balance continues to earn interest at the agreed-upon rate, ensuring the investment remains productive.
5. Is there any penalty for early withdrawals?
There are no penalties for partial withdrawals, provided they are made in multiples of ₹1,000. However, if the entire FD is withdrawn prematurely, the bank may offer a lower interest rate as per its policies.
6. Can the BOB Liquid FD be renewed after maturity?
Yes, upon maturity, customers can choose to renew their FD at the prevailing interest rates and tenure options available at that time.
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