Bank of Baroda runs special schemes for its customers. According to the information given on the bank’s website, an account can be opened for just Rs 100.
Bank of Baroda, the country’s third largest state-run bank, is opening a special account under the Flexible Recurring Deposit Scheme Yatha Shakti Jama Yojna. It can be opened with a starting amount of Rs 100. According to the information given on the bank’s website, up to 95 percent of the outstanding amount at the interest rate, the loan / overdraft facility is available for free.
Who can open this account
Recurring deposit account is a scheme with deposits, small interest rate and government guarantee in small installments. All the people living in India can open this account.
How much money have to be deposited
The minimum installment amount for opening an account can be jammed up to Rs 100 and then the original installment amount in multiples of Rs 100 and above. At the same time, monthly deposits can be increased up to 3 times the original installment, which is subject to a maximum limit of Rs 10,000 per month.
interest paid
Interest will be paid and deposited semi-annually. That is, interest will be deposited in the account in September and March. Interest will be payable on daily dues.
What happens if someone withdraws money before maturity?
The bank says that in such cases, up to 1 per cent will be deducted from its interest.
Overdraft is available for free
Loan / overdraft facility up to 95% of the outstanding amount is allowed as per the guidelines issued by the bank from time to time.
Senior citizens will get more benefit
Senior citizens will get additional interest at the rate of 0.50% for deposits below 1 crore. The depositor can continue till maturity without regularizing the account (ie without paying the outstanding installment amount with penal interest). In such cases, for the purpose of calculation of interest, it will be treated as similar to the power deposit scheme.
Important things
The facility of nominee is available. Also, TDS will be deducted as per Income Tax rules. TDS will not be deducted if a person submits 15G / 15H form as applicable.
Interest certificate is available upon customer request. Customers will be provided with passbook for the account.
Recurring deposits can be transferred from one branch to another at the request of the customer.
How to get money on maturity
On maturity, the amount will be deposited in the savings / current account of the customer. In cases where the customer does not have an active account. An amount less than 20,000 can be withdrawn as cash. If it exceeds, the demand will be provided in the draft / payment order.
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