bob SDP - A Recurring Deposit Scheme

bob SDP (Systematic Deposit Plan) - a recurring deposit scheme designed to offer flexibility, competitive returns, and financial security to individuals. The product reflects the Bank’s commitment to provide innovative and accessible savings solutions to customers with an opportunity to earn a higher rate of interest and build a corpus through regular savings.

With monthly contributions starting as low as ₹50 for rural & semi-urban areas and ₹100 for urban & metro areas, the bob SDP aims to make savings a habit for a wider population. It also offers additional interest rates to senior citizens, further incentivizing regular savings. Depending on the tenure, senior citizens can benefit by getting higher rates of interest up to 1%, giving them a robust option to grow their post-retirement funds.

Unlike SIPs in Mutual Funds where NAV of a particular Mutual Fund is dependent on market dynamics and the number units of the particular Fund are added to one’s portfolio according to the NAV value of the Fund as on a particular date and hence, number of units added may increase or decrease every month, in bob SDP the rate of interest is locked for the entire tenure opted for even though contributions are made monthly and there is assurance for depositors of the total amount of Corpus which will be accumulated over a period of time.

Further, in SIP the date of monthly contribution is fixed for a particular date every month, whereas in bob SDP one can deposit the monthly amount on any day of that month with the depositor getting a period of 30 days to deposit the monthly contribution.

In addition, what sets this plan apart is the flexibility it provides. Customers can take advantage of loan and overdraft facilities of up to 95% of the deposited amount, ensuring liquidity in times of need without sacrificing their savings. Interest is compounded quarterly and credited on maturity, boosting the overall returns for depositors.

To sum up, the features and benefits of bob SDP are as follows:

• Regular savings – Encourages and incentivises the savings habit with monthly contributions helping depositors accumulate a substantial corpus at the end of the term.
• Contributions can be made for as low as Rs 50 onwards in rural and semi-urban and Rs 100 onwards in urban and metro and can be increased as per the requirement of customers.
• Choose from a range of tenures starting from 6 months to 120 months (10 years).
• Assured returns with zero market volatility.
• Lock in Rate of Interest for the entire tenure opted for.
• Instant Loans / OD upto 95% of the Deposit amount.

bob SDP is part of Bank of Baroda’s strategy to offer customers a scheme that promotes a regular savings habit, with the potential to earn higher interest on deposits while the tenure and recurring instalments can be chosen by them as per their choice and liquidity plan. bob SDP stands as a valuable tool for those looking to build a sizable corpus for their future goals.

• Rate of Interest to Senior Citizen: An additional interest to Resident Senior Citizens as per Bank's guidelines is payable for deposits below Rs. 3.00 Crores only. Senior Citizen rate is not applicable to NRE/NRO/Capital Gain/FCNR. For latest rates, please visit
• 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.
• TDS Certificate:TDS certificate will be provided to all customers.
• Advance against Callable Deposits: This facility is not available to a minor account in single name and HUF. If the interest is not deposited for more than 2 quarters, term deposit will be apportioned immediately.
• Advance against (Except Non-Callable Deposits): Loan / Overdraft / Advance facility is not available against the security of Non-Callable Deposits as per Bank’s guidelines.
• Interest certificate available at request of customer
• Deposit certificate- Term Deposit Receipt is provided
• Term deposits can be transferred from one branch to another branch at the request of the customer.
• Mode of Payment:Maturity proceeds are credited to the 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

Interest Payment:

• In terms of Reserve Bank of India directives, interest shall be calculated at quarterly compounding intervals on Term Deposits and paid at the rate decided by the Bank depending upon the period of deposits. In case of Monthly Deposit Scheme, the interest shall be calculated for the quarter on compounding basis and paid monthly at discounted value. The interest on Term deposits is calculated by the Bank in accordance with the formulae and conventions advised by Indian Banks' Association.

Accordingly Bank has adopted following methodology.

“In all cases of Domestic Term Deposits ( period of deposit more than a year) where the terminal quarter is incomplete, interest should be calculated for complete quarter and 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.”

• For Deposits of 2 Quarters and above, interest is calculated in quarterly compounded for complete quarters and where the terminal quarter incomplete, interest is calculated proportionately for the actual no of days reckoning the year 365/366 days.
• The Maturity Amount mentioned in the receipt is calculated without giving TDS effect. While calculating interest for half year(Quarterly compounded), the interest calculated for previous half year (quarterly compounded) minus TDS will be added to principal amount for calculating interest for current Half Year.
• For Short Deposits of less than 2 quarters but more than 1 quarter simple interest will be paid for complete quarter and plus interest for remaining days reckoning the year 365-366 days( without compound effect).
• For short deposits of less than one quarter interest is calculated proportionately for actual number for days reckoning the year 365-366 days.
• The interest on FCNR deposits shall be paid at the rates calculated in accordance with the basis prescribed by the Reserve Bank of India (RBI) from time to time for various maturities. The interest on FCNR deposits shall be paid on the basis of 360 days to a year and shall be calculated at intervals of 180 days each.
• Deduction of Income tax at source from payment of interest on time deposits (section 194A of income tax act 1961) w.e.f 1st July 1995

Income Tax is to be deducted in cases where the total interest paid or credited on all time deposits in the name of a depositor with Bank as a whole, whether singly or jointly (as first named person) exceeds the specified limit per financial year as under income tax act 1961, Tax is to be deducted either at the time of credit to the account or payment of interest to the depositor whichever is earlier subject to change in limits of interest eligible for tax limit from time to time.

In case the depositor submits following Form before end of April every year, no tax may be deducted.

• Non-corporate customers other than Senior Citizens - Form No.15G along with PAN (w.e.f. 1st April 2010).
• Senior Citizens i.e. individuals of the age of -60- years or more - Form No.15H along with PAN (w.e.f. 1st April 2010) w.e.f. 1st April 2010 I.T. Department has made it mandatory to quote Permanent Account No. (PAN) by deductees in all cases where TDS is applicable, failure of which would attract the TDS at a higher rate of 20% (against normal rate of 10%) or normal rate whichever is higher. Further it has also been made compulsory to mention PAN on form No.15G / 15H w.e.f. 1st April 2010.
• The Bank will issue a system generated tax deduction certificate (TDS Certificate) for the amount of tax deducted on quarterly basis.
• Interest earned/accrued on NRE & FCNR Term Deposits is tax free in India under the relevant provisions of Income Tax Act in India and hence no tax at source is deductible in respect of these deposits. “In case of NRO deposits” The depositor can claim the benefit of reduced rates of tax under Double Tax Avoidance Agreement (DTAA), which India has with the governments of various countries, by submitting the documents prescribed by the Bank at the beginning of every financial year.

However, Bank has statutory obligation to deduct tax at source on any interest paid / payable on NRO Term Deposits at the specified rates. If PAN is submitted with a declaration applicable under Double Tax Avoidance Treaty - TDS is deducted @ applicable rate for the country of residence of the customer.

• If PAN is submitted without declaration - TDS is deducted @30%
• If declaration is submitted without PAN - TDS @normal rate or 20% whichever is higher.
• If PAN and declaration is not submitted - TDS @30%
• All interest payments will be rounded off to the nearest rupee.
• The Term Deposit account holders at the time of placing their deposits can give instructions with regard to closure of Deposit account or renewal of deposit for further period on the date of maturity. In absence of such mandate, the Bank will automatically renew the deposit as under.
• If Deposit is placed for more than one year it will be automatically renewed for one year at the prevailing rate on due date.
• If Deposit is placed for less than one year it will be automatically renewed for same period at the prevailing rate on due date.

In case, the customer wishes to make changes in the tenure or wants premature proceeds of the Term deposit, the same is allowed at the written request of the customer. In case of deposits under callable scheme premature withdrawal of bulk deposit is done as per Bank’s discretion.

Bulk Deposits (Rs. 3.00 Crores & above)

• “Bulk Deposit” means a single Rupee Term Deposits of Rs. 3.00 Crore and above (RBI/2024-25/40 DoR.SPE.REC.No.24/13.03.00/2024-2025 dated 07.06.2024).
• In case multiple deposits are created on same day aggregating Rs. 3.00 Crores and more, but the same mature on different dates, then it will not tantamount to splitting of Bulk Deposit. Also multiple deposits created on same day aggregating Rs. 3.00 Crores and more with same maturity period but for different specific purposes will not tantamount to splitting of Bulk Deposit, provided the customer submits supportive documents for the same.