Bank of Baroda (BoB), one of the largest public sector banks, has launched a unique FD scheme called the BoB Square Drive Deposit Scheme. Its maturity period is only 444 days, offering excellent returns to all categories of investors. This special term scheme offers senior citizens an interest rate of over 7% on deposits of less than ₹3 crore. It is completely market risk-free and ensures guaranteed returns.
Interest Rates on 444-Day FDs
This unique FD scheme from Bank of Baroda comes with two main options: Callable (with premature withdrawal) and Non-Callable (with no premature withdrawal). Both options offer different interest rates, but Non-Callable offers slightly higher returns.
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Callable Deposit
This option offers a slightly higher interest rate of 6.60% per annum for general citizens and 7.10% per annum for senior citizens on deposits less than ₹3 crore. Very senior citizens receive a higher interest rate of 7.20%.
Non-Callable Deposit
Returns on non-callable deposits are slightly higher. The interest rate for general citizens is 6.65%, for senior citizens it is 7.15%, and very senior citizens receive a whopping 7.25%.
Guaranteed Return on an Investment of ₹12 Lakh
According to the Bank of Baroda FD calculator, if you deposit ₹12 lakh in this BoB callable 444-day FD scheme today, at maturity, i.e., after 444 days, a general citizen will receive a return of approximately ₹79,200 in interest. This is a guaranteed return, bringing the total amount to ₹12,79,200.
If you choose the non-callable option and invest ₹12 lakh, a typical citizen will receive a substantial return of approximately ₹85,200 in interest. Since this FD is not directly linked to the market, the return is completely fixed.
Who can invest
According to Bank of Baroda’s official website, any individual can open an account in their own name or jointly with more than one person. Additionally, clubs, associations, educational institutions, partnerships, and joint-stock companies, as well as any other entity eligible to open fixed deposit accounts as per the bank’s regulations, can invest in this scheme. This scheme is available only in retail fixed deposit schemes.