Bank of Baroda has launched a unique alternative to the traditional fixed deposit (FD) — bob Liquid Fixed Deposits. The fixed deposit plans will cater to customers seeking innovative deposit solutions that blend assured & competitive returns, liquidity and flexibility.
Bank of Baroda’s latest offering combines the benefits of earning higher returns from fixed deposits with the convenience of easy liquidity associated with a savings account, the public sector bank said in a statement.
Interest rates for bob Liquid Fixed Deposits
The bank will offer general customers an FD rate of 6.85% on a 1-year deposit. Senior citizens will be offered 7.35% on a 1-year FD and 7.40% on a 5-year deposit.
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The liquid FD plans give 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 fixed deposit, it added.
This FD plan will ensure that depositors get the benefits of higher returns, lower prepayment penalties, and quick access to funds when needed, according to the bank.
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FD customers look for deposit products that prioritise both returns and liquidity
“Customers are in search of more flexible deposit products that prioritise 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,” it said.
For example, in a bob Liquid FD of Rs 5 lakh, a customer can prematurely withdraw Rs 1 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to earn interest at the original rate, and the customer will have to pay the prepayment penalty, if applicable, on the withdrawn amount of Rs 1 lakh only,
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