Bank of Baroda, the largest public sector bank in India, has introduced a new fixed deposit (FD) scheme called BOB Liquid Fixed Deposit.
This scheme offers secure returns like traditional FDs but also allows partial withdrawals anytime, just like a savings account. This means you can access your money whenever you need it without closing your FD.
Features of the BOB Liquid FD Scheme
The BOB Liquid FD provides the benefits of FD returns along with the flexibility of a savings account. Customers can make partial withdrawals without affecting the interest rate on the remaining amount.
For example, if a customer has an FD of ₹5 lakh and withdraws ₹1 lakh, the remaining ₹4 lakh continues to earn interest at the original FD rate.
Key Highlights of BOB Liquid FD
Minimum Deposit: ₹5,000 (and in multiples of ₹1,000)
Maximum Deposit: No limit
Minimum Tenure: 12 months
Maximum Tenure: 60 months
Interest Rate: The interest rate will be based on the bank’s term deposit rates, which may change over time.
Partial Withdrawal: Withdrawals allowed in multiples of ₹1,000 during the FD tenure.
Pre-Payment Penalties for the BOB Liquid FD
There is no penalty for pre-payment of term deposits up to ₹5 lakh if the FD has completed a minimum tenure of 12 months. However, there are penalties for early withdrawal in other cases:
For FDs less than ₹1 crore: A penalty of 1% over the applicable interest rate.
For FDs of ₹1 crore or more: A penalty of 1.5% over the applicable interest rate.
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BOB Liquid FD: High Returns with Flexibility
The BOB Liquid FD scheme offers higher returns on your savings compared to a regular savings account while maintaining the convenience of liquidity.
Customers can make partial withdrawals without having to close the FD, and the remaining amount continues to earn interest at the original FD rate.
For instance, if a customer has an FD of ₹5 lakh and withdraws ₹1 lakh, the remaining ₹4 lakh will continue to earn interest at the original FD rate.
