Bank of Baroda’s Systematic Deposit Plan (SDP) is a basic monthly saving plan that helps customers to regulate their savings for higher returns with liquidity.
Systematic Deposit Plan (SDP) allows investors to invest in installments and that too in smaller amounts. SDP is very much similar to a recurring deposit in terms of payment nature but it works like a fixed deposit. Every time you invest in SDP, your deposit is considered as a fresh FD, earning you an interest rate of term deposit applicable at that time. So, those who want to start an FD but don not have a large lump sum amount, the SDP is an option. The SDP, like an FD, returns you the principal and interest earned post maturity.
Bank of Baroda is offering investors an opportunity to invest in a Systematic Deposit Plan (SDP), a basic monthly saving plan, which helps customers to regulate their savings for higher returns with liquidity.
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What is the minimum amount required to open an SDP with Bank of Baroda?
To open a Bank of Baroda SDP account, you can start with Rs 50 and thereafter in multiple of Rs 50 if living in rural and semi-urban areas. If you are living in urban or metro cities, the minimum amount required to open an account is Rs 100 and thereafter in multiple of Rs 100.
The instalment amount fixed at the time of opening of account shall be required to be deposited each month for the duration selected.
Bank of Baroda SDP tenures:
Bank of Baroda’s Systematic Deposit Plan comes with tenures ranging from 6 months to 10 years, with options including 6, 9, 12, 15, 18, 21, 24, and so on up to 120 months.
Bank of Baroda SDP interest rates:
The SDP’s interest rates vary depending on the tenure and are compounded quarterly. Senior Citizen shall get benefit of additional interest as per guidelines effective from time to time, as per the Bank of Baroda website.
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Other key features of Bank of Baroda SDP:
Eligibility:
The SDP account can be opened by an individual in his own name. In case of more than one individual, the account will be joint.
The account can also be opened for a minor of age 10 and above on terms laid down by the bank. Accounts can also be opened in the name of minor with their father/mother, as guardian.
SDP accounts can also be opened by clubs, associations, educational institutions, partnerships and joint stock companies, provided they are registered and bank is satisfied that the account is opened for genuine savings purpose. The product is not available for NRE deposits.
Income tax treatment:
Interest payment is subject to Tax Deducted at source (TDS) as per prevailing Income Tax ACT. However, tax is deducted at source (TDS) on deposits that earn interest more than Rs 40,000 in a financial year.
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Premature closure:
Interest should be paid after deducting penalty of 1% from such applicable rate or the contracted rate whichever is lower in the cases which are subject to charging penalty.
Overdraft facility:
Loan / overdraft facility is permitted up to 95% of outstanding balance at interest rate as per bank’s guidelines issued from time to time by retail banking department. (No processing charges levied on such loan / overdraft facility). Interest will be charged as per Bank’s extant guidelines from time to time by retail banking department.
Penal interest:
The instalment for any calendar month must be paid on or before the last working day of that month.
In case of delay in payment of any instalment a penalty shall be charged, Rs 1.00 for every Rs 100 p.m. for any period of deposit.
Instalment paid during the course of calendar month, in which it is due, shall be deemed as payment made in time.
