bob Flexi SDP: Bank of Baroda Flexible Deposit Plan
Why in the news
Bank of Baroda, a leading public sector bank, brought a more flexible monthly savings deposit scheme that locks the interest rate for the whole term.
Key facts
- Product: bob Flexi Systematic Deposit Plan (SDP).
- Core instalment from ₹500; can be raised in ₹100 multiples.
- Ceiling: ₹1 lakh a month or 10 times the core instalment, whichever is lower.
- Rate lock: every instalment earns the higher rate fixed at the start, though each matures at a different time.
| Feature | Detail |
|---|---|
| Minimum core instalment | ₹500 |
| Step-up | ₹100 increments |
| Upper limit | Lower of ₹1 lakh or 10 times core instalment |
| Interest | Rate fixed at outset applies to all instalments |
| Overdraft | Up to 95% of outstanding balance |
| Nomination | Available |
Liquidity
The plan offers an overdraft facility and nomination benefits, so savers keep access to funds.
Exam angle
- Bank: Bank of Baroda; scheme: bob Flexi SDP.
- Numbers: ₹500 start, ₹100 step, 95% overdraft.
- Related term: systematic deposit plan, a monthly recurring-style deposit.