New Investment Scheme: Bank of Baroda (BoB) has recently launched bob Flexi Systematic Deposit Plan (bob Flexi SDP). This is a new recurring deposit product, which allows customers to increase their monthly installment. This scheme is designed to provide flexibility with assured return.
What is a Recurring Deposit?
Recurring Deposit (RD) is a type of term deposit scheme. In this, you invest a fixed amount every month for a fixed period. It encourages regular savings and provides fixed interest on the deposit. Traditional RDs allow only fixed monthly installments, while under BOB Flexi SDP you can adjust the monthly EMIs according to your budget.
How much can the monthly amount be increased? BOB Flexi SDP allows customers to increase their monthly EMI up to 10 times their base EMI. In this scheme, you can start investing with a minimum of Rs 500 per month. During this period, the monthly EMI can be increased in multiples of Rs 100. The maximum limit of deposit in this scheme is Rs 1 lakh per month. What is the interest rate? A fixed interest rate will be offered under this scheme, which will remain the same for the entire tenure. Even though customers add the amount in monthly installments, interest will be paid on each deposit amount based on the period chosen.
For example, an interest of 6.50% per annum is currently being offered on a 2-year deposit, it is 7.00% per annum for senior citizens and 7.10% per annum for super senior citizens. You can invest for 6 months to 5 years In this plan, you can invest for 6 months to 5 years. This scheme provides assured returns without any market risk. Customers can also avail loan or overdraft facilities up to 95% of the deposit amount. Nomination facility is also available in this plan.
The bank said that the purpose of this plan is to support goal-based savings such as education, travel or emergency. Bob Flexi SDP is now available in Bank of Baroda branches across India.
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