Bank of Baroda(BOB) Monthly Income Plan

Guaranteed monthly income from a reliable source is an important goal that most people aim for. It facilitates financial security, peace of mind, and a seamless day-to-day life. Those of age - 18 to 65 years (until retirement) have their own business or jobs to count on. Senior citizens and retired personnel find it hard to adjust to the sudden lack of monthly income. To help the ones in need, the Bank of Baroda has devised its BOB Monthly Income Plan. 

It is a Fixed Deposit arrangement that pays out interest every month. Thus assuring the investors of a sure income that they can use to meet daily expenses and live a comfortable life without having to rely on anyone. Continue in the article to find out more about the BOB Monthly Income Plan and the arrangements it comes along with. 

BOB Monthly Income Plan - Essential Attributes

The monthly income plan by Bank Of Baroda is quite a reliable option, owing to the facilities it provides! Still wondering why you should get one? In that case, continue through the list below to get a clear understanding of the essential attributes that are incorporated within the plan:

A Source Of Fixed Income

As already explained, you will earn a steady return on your investment every month. Moving ahead with such a condition, there are flexible upper limits for the amount you can invest and earn. The higher the rate of deposit, the better you can earn. You can use your idle money to generate a guaranteed income.  

You Can Apply For Loan

Besides serving as a stable source of income, one can also rely on the Monthly Income Plan as a confidante during an emergency. The plan allows you to withdraw about 95% of the invested fund as a loan. 

Scope For Auto-Renewal

Targeted to senior citizens and elderly adults. This Income Plan has this auto-renewal feature, where the bank renews the fund for atleast a year under circumstances when the beneficiary cannot visit the branch or take any step in physical terms. 

High Rate Of Interest For Senior Citizens

The Monthly Income Plan schedule offers a 0.5% higher interest rate to the elderly compared to the other holders. Considering the needs of senior citizens and their lives after retirement, the bank has come up with such a step. You are eligible for the term when your age is 60+ years. 

Tax Benefits Rightfully Available

On the interest earned from the Bank of Baroda MIP, there will be no TDS deducted by the bank. But for that to happen, you will have to submit forms 15G and 15H before the renewal of the term for another year. 

Criteria Of Investment 

The BOB plan is a saver, right? Wondering what is the criteria of investment that you need to abide by while making applications? Continue with the list below to get a clear glimpse: 

• The investor has to reside in India.
• The plan is available for a single individual and senior couples with a joint account.
• You can invest a minimum of Rs.1000/- in the BOB monthly plan. In contrast, there is no maximum upper limit. The minimum available interest rate is 6.50% for all ages, with 0.50% extra for senior citizens. 
• If you are a staff or ex-staff of BOB, you are eligible for an additional 1% over the interest rate. For the senior citizens who also happen to be ex-staff of the bank, you are eligible for all benefit types.   

Documents Required

You will need the following documents to make an investment and start your monthly income plan with BOB:

• A passport-size photo
• ID proof and Address proof - voter card, Aadhar card, Passport or PAN 
• A letter of introduction

Bank Of Baroda MIP - Bulk Deposits

The BOB MIP also allows investors to opt for bulk payments. However, the rate of interest applied does vary under such conditions. It is generally higher than the ones available at other times. Continue for the rest of the details:

• Investors can deposit bulk amounts under BOB’s retail time deposit programs.
• The bank can accept deposits up to Rs.25 crore under this plan. 
• Also, the bank can accept or reject requests for early payments/withdrawals. The penalty clause remains similar to the regular funds invested. 

BOB Monthly Income Plan Advantages 

Below are the advantages listed of the plan:

• The plan has a maximum deposit period of 120 months, while the minimum deposit period is 12 months. That way, the investor can always redeem the deposited amount after a year when aiming for a higher investment drill.  
• Also, the plan lets the investor add a nominee to the schedule. Now, the nominee can use the facility on behalf of the investor or during their absence. 
• The minimum deposit amount is just Rs.1000/- which allows investors from all strata of life to start saving for their future and avail of the benefits of a stable monthly income.

Conclusion

The BOB Monthly Income Plan is the ultimate savior for those planning for a secure and financially safe life after retirement. Remember, with the right investment plans, you will never face any unwanted cash crunch. Just make sure to abide by the requirements allotted by the bank, and you are good to go.