Bank of Baroda has introduced “bob Liquid Fixed Deposits” as an alternative to the traditional fixed deposit (FD), combining the benefits of FD interest rates with the convenience of easy liquidity associated with a Savings Account.

The new deposit gives depositors the flexibility of a partial withdrawal without having to close the entire FD, ensuring that depositors can address their urgent financial needs as and when required. The balance funds continue to earn interest at the contracted rate in the same FD, the public sector bank said in a statement.

The bank said the bob Liquid FD has features such as flexible deposit amounts starting at ₹5,000 (and in multiples of ₹1,000 thereafter, with no maximum deposit amount), tenure options ranging from 12 to 60 months and partial withdrawals accepted in multiples of ₹1,000. Further, no penalty is levied for premature withdrawals on Fixed Deposits up to ₹5 lakh that have completed a tenor of at least 12 months.

Premature withdrawal penalty

BoB said no penalty is levied for premature withdrawals in case of term deposits up to ₹5 lakh that have completed a minimum period of 12 months.

In the case of FDs below ₹1 crore, a penalty of 1 per cent from the applicable interest rate for the completed period or the contracted rate, whichever is lower, will be levied, the Bank said.

Further, in the case of FDs of ₹1 crore and above, a penalty of 1.5 per cent from the applicable interest rate for the completed period or the contracted rate, whichever is lower, will be levied.