Bank Of Baroda bob Flexi SDP Scheme: Lock Higher Interest Rates On Deposits Of Rs 500 To Rs 100,000 Per Month

Amidst the rate cut trend on fixed deposit schemes, leading PSU, Bank of Baroda has launched a new recurring deposit scheme called bob Flexi Systematic Deposit Plan (bob Flexi SDP), which is flexible and offers investors the choice to increase their monthly investment whenever they can do so. Also, depositors can lock in a higher rate of return on their investment. The maximum monthly investment is Rs 1 lakh per month.

In its statement, the Bank of Baroda said, the Bob Flexi Systematic Deposit Plan offers customers a higher fixed rate of interest for the entire tenure of the SDP - providing stability to one's investment portfolio, inculcating the habit of disciplined monthly savings and providing customers the flexibility to increase their monthly contributions when possible based on their financial situation.

Key features of Bob Flexi SDP:

As per the PSU, the following are the features of the Bank of Baroda's new scheme:

- Flexible Deposits: increase monthly deposits by up to 10 times the core monthly instalment, subject to a maximum deposit of ₹1,00,000/- per month.

Higher Interest Rates: The higher interest rate is locked for the entire period opted for, even though contributions are made monthly.

- Assured Returns: Offers assured returns, with no market risk.

- Start Small, Scale Anytime: Minimum monthly contribution starts at ₹500; additional deposits in multiples of ₹100.

- Tenure: Customers can choose from a wide range of tenures, starting from 6 months to 5 years.

- Additional Benefits: Loan/Overdraft facility of up to 95% of the deposited amount and Nomination facility available

One of key feature of bob Flexi SDP is that customers can lock in a fixed and higher rate of interest on each monthly contribution made for the full duration of the deposit, even though contributions are made in monthly tranches. Hence, while each subsequent deposit is made for a shorter duration, customers continue to earn a higher rate of interest applicable for that tenor.

Bank of Baroda gave an example:

If a customer opts for a for a 2-year bob Flexi SDP, as per the current interest rates, she/he will earn an interest rate of 6.50% p.a. (7.00% p.a. for senior citizens and 7.10% p.a. for super senior citizens) on all the 24 contributions, even though each successive monthly deposit is made by the customer for a progressively shorter period of time.

In simple words, unlike traditional recurring deposits which offers fixed returns on regular monthly savings, the bob Flexi SDP is one-step ahead by allowing customers to increase their monthly deposits by up to 10 times their core instalment amount, subject to a maximum of ₹1 lakh per month.

According to the bank, this feature makes bob Flexi SDP an ideal instrument for goal-based savings such as education, marriage, travel or building a financial corpus for emergencies.

That being said, bob Flexi SDP introduces a new level of personalisation to recurring deposit products. Customers can increase their monthly contributions when the opportunity arises, helping them to achieve their financial goals more quickly and with ease. bob Flexi SDP is available at Bank of Baroda branches across the country, making it easily accessible to all.