Summary: Bank of Baroda’s bob earth Green Term Deposit is a named deposit product whose proceeds support eligible green financing. The official retail rate table checked on 17 October 2026 carries an effective date of 16 May 2026 and lists different rates for general, resident senior and resident super-senior customers. Product eligibility, access to money, taxation and deposit insurance require separate checks. The green label does not make interest tax-free or create a separate insurance ceiling. This guide focuses on the retail callable product and explains how to read its terms without confusing it with the bank’s Golden Goal 555-day deposit.
- What the bob earth deposit covers
- Retail callable interest rates
- Understanding the green purpose
- Premature closure and access to money
- A penalty waiver is not a maturity guarantee
- Income tax and Form 121
- DICGC protection applies across the bank
- Illustration of aggregation
- Documents to check before booking
- Frequently Asked Questions
- Is this the same as Golden Goal 555 day FD
- What is the minimum callable deposit
- Can a small depositor obtain the non callable rate
- Does green mean tax free
- Does no TDS mean no tax
- Is insurance available separately for every deposit
- Key Takeaways
- Source Links
What the bob earth deposit covers
The bank’s product page provides six tenures: 12 months, 18 months, 777 days, 1111 days, 1717 days and 2201 days. Callable deposits start at ₹5,000, with further amounts in multiples of ₹100. Non-callable deposits start above ₹1 crore, also in multiples of ₹100. The stated maximum is ₹10 crore. Nomination and auto-renewal facilities are available. Senior-citizen preferential rates apply to eligible resident Indians on retail deposits below ₹3 crore.
This distinction matters when reading a comparison. A household depositing ₹2 lakh cannot treat the non-callable rate as its available retail offer. Similarly, a rate table for deposits of ₹3 crore or more is a different amount category. Match the product name, amount, tenure, residency and age eligibility before comparing any percentage.
Retail callable interest rates
The following figures reproduce the bank’s below-₹3-crore callable schedule effective 16 May 2026, checked on 17 October 2026. They are annual rates, not forecasts for future bookings.
| Tenure | General public | Resident senior | Resident super senior |
|---|---|---|---|
| 12 months | 6.20% | 6.70% | 6.70% |
| 18 months | 6.20% | 6.70% | 6.80% |
| 777 days | 6.20% | 6.70% | 6.80% |
| 1111 days | 6.25% | 6.85% | 6.95% |
| 1717 days | 6.25% | 6.85% | 6.95% |
| 2201 days | 5.95% | 6.95% | 6.95% |
The bank publishes a separate non-callable table. Obtain a booking quotation rather than adding a presumed premium to these figures. Save the effective-date schedule and final deposit advice. A higher annual percentage does not by itself establish a higher usable return after tax, early closure and the depositor’s cash needs.
Understanding the green purpose
RBI’s green-deposit framework introduced earmarking of deposit proceeds for eligible environmental financing, with governance, disclosure and review requirements. The environmental use of proceeds and the depositor’s contractual repayment rights are different questions. A depositor should examine the bank’s current green-financing disclosures alongside the deposit terms, rather than treating the product name as evidence of a particular project’s performance.
For practical recordkeeping, retain the product brochure and any allocation or impact disclosure relied upon. If a sustainability report describes lending across an entire portfolio, do not assume that it traces the individual depositor’s rupees to a single named installation. The useful questions are whether the product is correctly identified and whether the institution explains its financing and reporting approach. This article does not assess or certify environmental impact.
Premature closure and access to money
The bank’s published premature-payment notes waive the penalty for deposits up to ₹5 lakh that have remained for at least 12 months. For deposits held for less than 12 months, or above ₹5 lakh but below ₹1 crore, the stated adjustment is a one-percentage-point penalty from the applicable rate or contracted rate, whichever is lower, where penalty applies. Larger deposits have separate notice and penalty conditions. Non-callable deposits do not permit ordinary premature withdrawal.
A penalty waiver is not a maturity guarantee
Before breaking a callable deposit, request the actual closure calculation in writing. A waiver of a penalty does not establish that the full contracted-tenure interest will be paid for a shorter holding period. Ask the bank to show the deposit dates, actual holding period, applicable comparison rate, any adjustment, interest already paid and net proceeds. This also helps reconcile a later revised interest certificate.
Plan the maturity instruction separately. Auto-renewal can create a fresh contractual period at the terms then applicable. Readers with a known upcoming payment should record the due date and ask whether the selected tenure and renewal instruction match that requirement. This is a cash-planning check, not a recommendation to choose this deposit over another investment.
Income tax and Form 121
For Tax Year 2026–27, use the Income-tax Act, 2025 and Income-tax Rules, 2026 when analysing current receipts and withholding. Ordinary resident FD interest is generally taxable; describing a deposit as green does not create a special income-tax exemption. Bank-interest withholding is governed by section 393, while an eligible declaration for non-deduction is made under section 393(6) in Form 121. The Income Tax Department identifies Form 121 as the current form for tax years beginning on or after 1 April 2026.
The absence of TDS is not proof that interest is exempt. Review total income, eligibility and the actual declaration conditions before filing. Retain the interest certificate, relevant tax-credit statement and declaration acknowledgement. TaxGuru’s Form 121 guidance explains the transition from Forms 15G and 15H. NRE or NRO treatment requires a separate residency and statutory analysis and should not be inferred from this resident-retail illustration.
DICGC protection applies across the bank
DICGC’s ceiling is ₹5 lakh per depositor per insured bank in the same right and capacity, including principal and interest. It is not ₹5 lakh for every FD, every branch or every named deposit product. Savings and other eligible deposit balances held in that same capacity must be considered together. A separate product label does not create a fresh ceiling.
Illustration of aggregation
Assume an individual has ₹3 lakh in this deposit and ₹2.40 lakh in another eligible account with the same bank in the same right and capacity. The combined principal is ₹5.40 lakh before interest. Against a ₹5 lakh statutory ceiling, ₹40,000 of principal already falls outside that limit. This arithmetic illustrates aggregation only; it does not predict a bank failure, claim event or ultimate recovery.
Documents to check before booking
Keep the booking confirmation, rate and effective date, ownership capacity, residency declaration, nomination and renewal choice together. For an early closure, add the bank’s calculation and revised interest statement. A business depositor should also document any lien or restriction affecting availability of funds. Such restrictions matter to liquidity review and should not disappear merely because an account is described as a fixed deposit.
Frequently Asked Questions
Is this the same as Golden Goal 555 day FD
No. bob earth has its own green-deposit identity, tenure menu and terms. Do not combine the two schedules.
What is the minimum callable deposit
The product page states ₹5,000, with further amounts in multiples of ₹100.
Can a small depositor obtain the non callable rate
The product’s non-callable minimum is above ₹1 crore. Check eligibility before using that rate in a comparison.
Does green mean tax free
No. The environmental label does not itself exempt ordinary FD interest from income tax.
Does no TDS mean no tax
No. Withholding and final taxable income are separate. Form 121 requires statutory eligibility.
Is insurance available separately for every deposit
No. DICGC aggregates eligible balances per depositor per bank in the same right and capacity.
Key Takeaways
Use the correct retail callable schedule, preserve the effective-date rate advice and check premature-payment calculations. Treat green financing, income tax, liquidity and DICGC cover as distinct issues. Recheck the bank’s live terms immediately before booking or renewing.
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Disclaimer: This article provides general educational information based on official material checked on 17 October 2026 and is not investment, tax or legal advice or a recommendation to purchase any product. Rates, eligibility, product terms and law may change. Readers should verify the applicable documents and obtai advice for their circumstances. TaxGuru accepts no responsibility for decisions, losses, errors or omissions arising from reliance on this article.
Source Links
Bank of Baroda product page: https://bankofbaroda.bank.in/accounts/term-deposit/bob-earth-green-term-deposit
Bank of Baroda current green-deposit rate schedule: https://bankofbaroda.bank.in/interest-rate-and-service-charges/deposits-interest-rates/bob-earth-green-term-deposits-callable-and-non-callable-upto-ten-crores
RBI green-deposit FAQs explaining the framework: https://rbi.org.in/Scripts/FAQView.aspx?Id=161
Income Tax Department income-tax forms guidance: https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/income-tax-forms
DICGC guide to deposit insurance: https://www.dicgc.org.in/guide-to-deposit-insurance
