Bank of Baroda Quarterly Income Plan: ₹10 Lakh FD Can Earn Up to ₹8 Lakh Interest in 10 Years – Check Rates & Quarterly Payout

Investing a large amount in a fixed deposit may provide predictable returns, but it may not suit investors who need a regular flow of income from their savings. Bank of Baroda’s Quarterly Income Plan (QIP) offers a solution by allowing customers to invest a lump sum, earn interest every quarter and keep the principal invested for the selected tenure, subject to applicable terms and conditions.

What is the Bank of Baroda Quarterly Income Plan?

Bank of Baroda’s Quarterly Income Plan (QIP) is a term deposit scheme designed for customers who want to receive interest every quarter. Deposits can be made from ₹1,000, in multiples of ₹100, with no upper limit. The tenure ranges from 12 months to 120 months, while the applicable interest rate depends on the deposit period and customer category. 

Key Features of Bank of Baroda QIP 

• Minimum deposit: ₹1,000
• Deposit multiples: ₹100
• Maximum deposit: No upper limit
• Minimum tenure: 12 months
• Maximum tenure: 120 months
• Interest payment: Quarterly
• Senior citizen benefit: Additional 0.50% for eligible resident senior citizens
• Nomination: Available
• Loan/overdraft: Available up to 95% of the outstanding balance, subject to applicable terms
• TDS: Applicable as per prevailing income-tax rules
• Auto-renewal: Available as per the bank’s applicable terms
• Premature withdrawal: Permitted subject to applicable conditions and penalties

Bank of Baroda QIP Interest Rates

The interest rate for the Bank of Baroda Quarterly Income Plan is linked to the prevailing domestic term-deposit rates decided by Bank of Baroda from time to time. 

• General Public: 1 to 3 years is 6.25%, 3 to 5 years is 6.30%, and above 5 years to 10 years is 6.00%.
• Resident Senior Citizens: 6.75% for 1 year to 3 years, 6.90% for above 3 years to 5 years, and 7.00% for above 5 years to 10 years.
• Resident Staff: 1 to 3 years is 7.25%, 3 to 5 years is 7.30%, and above 5 years to 10 years is 7.00% plus the applicable staff benefit as per bank guidelines.
• Staff Senior Citizens: 1 to 3 years is 7.75%, 3 to 5 years is 7.90%, and above 5 years to 10 years is 8.00%.

₹10 Lakh Bank of Baroda QIP: Check Quarterly Interest 

Note: The quarterly payout varies according to the applicable interest rate for the selected tenure. The ₹10 lakh principal remains invested separately. Figures are before applicable TDS.  

₹10 Lakh Bank of Baroda QIP: Total Interest Earned

For a ₹10 lakh investment in Bank of Baroda QIP, the total interest received over the selected tenure can be calculated from the quarterly payouts. Based on the applicable rates: 

• General Public: Earns ₹62,500 in 1 year, ₹1.88 lakh in 3 years, ₹3.15 lakh in 5 years and ₹6 lakh in 10 years.
• Resident Senior Citizens: Earns ₹67,500 in 1 year, ₹2.03 lakh in 3 years, ₹3.45 lakh in 5 years and ₹7 lakh in 10 years.
• Resident Staff: Earns ₹72,500 in 1 year, ₹2.17 lakh in 3 years, ₹3.65 lakh in 5 years and ₹7 lakh in 10 years.
• Staff Senior Citizens: Earns ₹77,500 in 1 year, ₹2.33 lakh in 3 years, ₹3.95 lakh in 5 years and ₹8 lakh in 10 years.

Premature Withdrawal of Bank of Baroda QIP

Bank of Baroda allows premature payment of the QIP deposit subject to applicable conditions and penalties. 

• For deposits of up to ₹5 lakh, no penalty is charged on premature payment if the deposit has remained with the bank for at least 12 months.
• For deposits below ₹1 crore where a penalty applies, interest is paid after deducting 1% from the applicable interest rate for the period the deposit remained with the bank or the contracted rate, whichever is lower.
• For deposits of ₹1 crore and above, premature payment requires 31 days’ prior notice. A penalty of 1.50% is applicable on the relevant interest rate for the period the deposit remained with the bank or the contracted rate, whichever is lower.

Therefore, the interest received on premature withdrawal can be lower than the interest earned if the deposit is held until the end of the selected tenure.

Also Read: NSC vs RBI Floating Rate Bond: ₹10 Lakh Investment Could Earn ₹5.63 Lakh Interest – Which One Pays More?

Important Rules of Bank of Baroda QIP 

• Interest is paid quarterly on the deposit.
• Deposits can be made for 12 to 120 months.
• The minimum deposit is ₹1,000, in multiples of ₹100.
• There is no maximum deposit limit.
• The quarterly interest payout depends on the applicable interest rate and deposit tenure.
• Eligible resident senior citizens receive an additional 0.50% interest.
• Loan or overdraft against the deposit is available up to 95% of the outstanding balance, subject to applicable guidelines.
• In the absence of maturity instructions, the deposit is automatically renewed for one year at the prevailing rate.
• Nomination facility is available as per the bank’s rules.
• TDS is applicable as per prevailing income-tax rules.
• Deposits of ₹3 crore and above are treated as bulk deposits as per the applicable RBI classification.
• Premature payment is permitted subject to the bank’s applicable conditions and penalties.

Who Should Consider Bank of Baroda QIP?

The Bank of Baroda QIP can be suitable for individuals who want regular quarterly income from their deposits. It may be useful for salaried individuals, retirees, senior citizens and others who prefer fixed payouts while keeping the principal invested. The loan or overdraft facility can also provide access to funds without closing the deposit.