Bank of Baroda launches bob Liquid Fixed Deposits: Redefining Fixed Deposits with Partial Withdrawal Flexibility

bob Liquid FD is a unique deposit product that combines assured returns with flexible liquidity

Bhubaneswar: In today’s dynamic financial environment, customers are seeking innovative deposit solutions that blend assured & competitive returns, liquidity and flexibility. To cater to the evolving needs of savers, Bank of Baroda has introduced a unique alternative to the traditional fixed deposit (FD) —bob Liquid Fixed Deposits.

bob Liquid FD combines the benefits of earning higher returns from Fixed Deposits with the convenience of easy liquidity associated with a Savings Account. It gives depositors the flexibility of a partial withdrawal facility without having to close the entire FD, which ensures that depositors can address their urgent financial needs as and when required, while the balance funds continue to earn interest at the contracted rate in the same FD. This ensures that depositors get the benefits of higher returns, lower prepayment penalty and quick access to funds when needed.

Addressing Changing Financial Needs

India’s financial landscape is witnessing significant shifts in consumer behaviour. Customers are in search of more flexible deposit products that prioritize both returns and liquidity. Whether it’s to address an unexpected emergency or meet an unforeseen expense, the bob Liquid FD gives quick access to part fund withdrawals without having to close the FD from where the partial withdrawal is made.

For example, in a bob Liquid FD of Rs. 5.00 lakh, a customer can prematurely withdraw Rs. 1.00 lakh. The remaining deposit of Rs 4 lakh will continue to earn interest at the original rate, and the customer will have to pay the prepayment penalty, if applicable, on the withdrawn amount of Rs 1 lakh only, and not on the entire amount.

Key Features of bob Liquid FD

The bob Liquid FD is designed with customer-centric features, including flexible deposit amounts starting at Rs. 5,000, tenure options ranging from 12 to 60 months and partial withdrawals accepted in multiples of Rs. 1,000. Further, no pre-payment penalty is levied for premature withdrawals on Fixed Deposits up to Rs 5 lakh that have completed a tenor of at least 12 months.

The key features of bob Liquid FD are:

• Minimum Deposit Amount: Rs. 5,000/- (and in multiples of Rs. 1,000/- thereafter)
• Maximum Deposit Amount: No Upper Limit
• Minimum Duration: 12 Months
• Maximum Duration: 60 Months
• Interest Rate: As per prevailing Interest Rates on Term Deposits as decided by the Bank from time to time (https://www.bankofbaroda.in/interest-rate-and-service-charges/deposits-interest-rates)
• Premature Payment/Partial Withdrawal Facility: Allowed, in multiples of Rs 1,000/-, as many times as required during the tenure of the FD
• Pre-payment Penalty:
  • No penalty is levied for premature payments in case of term deposits up to Rs. 5.00 lakh that have completed a minimum period of 12 months.
  • Fixed Deposit below Rs 1 crore – Penalty of 1% from the applicable interest rate for the completed period or the contracted rate whichever is lower.
  • Fixed Deposit of Rs 1 crore and above – Penalty of 1.5% from the applicable interest rate for the completed period or the contracted rate whichever is lower.

Bank of Baroda’s bob Liquid FD is a versatile FD variant, particularly suited for individuals looking to lock in their funds for a longer duration for higher returns, while at the same time wanting to strike a balance between saving for long-term goals and maintaining the flexibility to address unforeseen expenses.

bob Liquid FD can be easily opened through the Bank’s digital channels, including the bob World app and Internet Banking, as well as by visiting any branch.