If you are planning a safe investment, a Fixed Deposit (FD) from Bank of Baroda can be a reliable choice.
It offers stable returns and also helps in tax saving, especially for a 5-year investment.
Let’s understand how much you can earn if you invest ₹5 lakh in a 5-year FD.
Interest Rates and How They Work
Bank of Baroda is currently offering around 6.30% interest per year for general customers on FDs between 3 to 5 years.
Senior citizens get a higher rate of 6.90%, while super senior citizens can earn up to 7%.
The interest is calculated on a quarterly compounding basis.
This means your interest is added every 3 months, which helps your money grow faster over time.
Returns on ₹5 Lakh FD
If a general customer invests ₹5,00,000 for 5 years at 6.30% interest:
Maturity amount: लगभग ₹6,83,450
Total interest earned: करीब ₹1,83,450
For senior citizens at 6.90%:
Maturity amount: लगभग ₹7,03,921
Interest earned: करीब ₹2,03,921
For super senior citizens at 7%:
Maturity amount: लगभग ₹7,07,389
Interest earned: करीब ₹2,07,389
These returns may vary slightly depending on the exact compounding calculation.
Tax Rules You Should Know
Interest earned from FD is taxable as per your income tax slab.
This means the interest amount is added to your total income and taxed accordingly.
However, senior citizens get some relief under Section 80TTB of the Income Tax Act.
They can claim a deduction of up to ₹50,000 on interest income if they opt for the old tax regime.
Is This FD a Good Option?
A 5-year FD is a good option for those who want safe and fixed returns without market risk.
It is especially useful for conservative investors and retirees who prefer stability over high returns.
Overall, this FD plan offers a balance of safety, steady income, and tax benefits, making it a solid choice for long-term savings.
