Summary: Bank of Baroda’s named bob Golden Goal Deposit Scheme is a 555-day term deposit available within its retail term-deposit framework. The bank’s published schedule effective 12 June 2026, reviewed on 12 October 2026, shows callable annual rates of 6.75% for general depositors, 7.25% for eligible resident senior citizens and 7.35% for eligible resident super-senior citizens aged at least 80. A separate non-callable variant, subject to a single-deposit amount above ₹1 crore and below ₹3 crore, shows 6.80%, 7.30% and 7.40% respectively. The fixed contractual rate, interest-payout choice, early-closure terms and deposit-insurance limit require separate attention. Interest is generally taxable even if the bank does not deduct tax at source; for Tax Year 2026-27, section 393 of the Income-tax Act, 2025 provides bank-interest withholding thresholds of ₹50,000 for non-senior payees and ₹1,00,000 for senior citizens. DICGC insurance is capped at ₹5 lakh per depositor per insured bank in the same right and capacity, including principal and interest. This is a factual product and compliance explainer, not an investment recommendation.
What is the bob Golden Goal 555-day deposit?
The bob Golden Goal Deposit Scheme is a specific 555-day fixed-deposit tenor published by Bank of Baroda. It should not be confused with the bank’s ordinary one-year deposit, its 444-day bob Square Drive product, a five-year tax-saving fixed deposit, or a corporate or non-banking finance company deposit. The bank’s official product page lists callable and non-callable variants, different interest payout arrangements, and preferential rates for eligible resident senior and super-senior citizens. The interest rate applicable to a new booking is determined by the bank’s effective rate schedule and the depositor’s eligibility at the booking or renewal date. A published annual percentage is not the same as a guaranteed net post-tax return.
As checked on 12 October 2026, the official Bank of Baroda rate schedule for retail deposits below ₹3 crore displays the 555-day callable rates with an effective date of 12 June 2026. The product page confirms the same figures and provides a non-callable variant. A separate official schedule exists for larger deposits and NRE/NRO accounts; those must not be combined with the resident-retail rate table. The bank can change rates for new deposits without altering the contracted rate of an existing deposit, subject to the actual deposit terms. Accordingly, readers should retain the rate sheet or bank confirmation that applied on their booking date.
Official rates for the 555-day product
| Customer class | Callable 555-day rate | Non-callable 555-day rate |
|---|---|---|
| General public / relevant NRO or NRE category | 6.75% p.a. | 6.80% p.a. |
| Eligible resident senior citizen (60+) | 7.25% p.a. | 7.30% p.a. |
| Eligible resident super-senior citizen (80+) | 7.35% p.a. | 7.40% p.a. |
These are annualised nominal rates quoted by the bank, not five-hundred-and-fifty-five-day total returns. The senior premium is limited to qualifying resident Indian senior or super-senior citizens, and it should not be automatically applied to every NRE or NRO depositor. The official page says the retail scheme is for deposits below ₹3 crore, while the non-callable bob Advantage variant requires a single deposit above ₹1 crore and below ₹3 crore. Thus, a person placing ₹2 lakh cannot simply select the 6.80% non-callable rate. The applicable product code, customer classification, deposit amount and availability must be verified at the bank before opening or renewing an account.
What is the effective date of these rates?
The current official callable and non-callable retail schedule reviewed for this article expressly states “w.e.f. 12-06-2026”. This means the listed rates are the bank’s published schedule effective 12 June 2026; it does not mean they were first introduced on 12 October. If the bank posts a subsequent revision, the later schedule will govern new bookings according to its terms. For compliance publication, both dates matter: the effective date identifies the bank’s tariff period, while the verification date identifies when the source was checked. No rate increase or decrease is predicted in this article.
Callable and non-callable are materially different
A callable fixed deposit generally permits a premature closure request, subject to the bank’s conditions, approval and interest recalculation. Bank of Baroda states that, for callable term deposits up to ₹5 lakh kept with the bank for at least 12 months, no premature-withdrawal penalty is levied, although interest is recalculated at the rate applicable to the amount and actual completed period. For deposits held for less than 12 months and for the stated larger deposit bands below ₹1 crore, the bank describes a 1% penalty from the applicable rate in cases covered by its terms. For ₹1 crore and above, its official schedule refers to a 31-day notice and a 1.5% penalty, subject to competent approval. These conditions must be read in the context of the precise account type and date.
Non-callable is not simply a better-paying version of the same liquidity arrangement. The bank’s rate page states that premature withdrawal is not permitted under non-callable schemes. The bank also says loans or overdrafts against the non-callable variant are unavailable under the relevant guidelines. The additional five basis points therefore corresponds to a different contractual liquidity position and, in this named product, a high minimum single-deposit amount. A depositor who may need funds before 555 days should understand the difference before comparing the two displayed percentages. Exceptions, if any, such as a deceased depositor’s settlement, require examination of the bank’s governing rules rather than an assumption of ordinary early withdrawal.
Interest payout: cumulative versus periodic
The product page refers to reinvestment and income payout options such as RIRD, monthly income and quarterly income arrangements. Under a cumulative deposit, periodic interest is generally reinvested under the bank’s compounding method; under a payout deposit, interest is credited at agreed intervals, and a monthly payout may be discounted relative to an annual or quarterly quoted rate. Consequently, two deposits with the same annualised headline rate can produce different maturity values or cash-flow profiles. The account advice should specify principal, booking date, maturity date, interest calculation, payout frequency, tax withholding and renewal instruction. Any illustration should distinguish a simple-interest approximation from the bank’s contractual calculation.
Illustrative interest calculation and cash-flow impact
Suppose an eligible general resident depositor places ₹1,00,000 in the 555-day callable scheme at a quoted annual rate of 6.75%. A simple-interest approximation using a 365-day year is ₹1,00,000 × 6.75% × 555 ÷ 365, or about ₹10,264 before income tax. This is deliberately not presented as the bank’s maturity value: actual interest depends on the contractual day-count convention, quarterly compounding or payout option, exact dates and rounding. The cash-flow question is also different for a monthly payout account and a cumulative account. For a larger corporate treasury deposit, finance teams should separately assess liquidity lock-up, interest accrual, counterparty concentration and cash-flow forecasting.
| Illustrative input | Amount or assumption | Important qualification |
|---|---|---|
| Principal | ₹1,00,000 | Illustration only |
| Annual quoted callable rate | 6.75% | General depositor rate per official schedule |
| Tenor | 555 days | Named scheme duration |
| Simple-interest estimate | About ₹10,264 | Not a contractual maturity quotation |
| DICGC cover | Up to ₹5 lakh aggregate | Includes principal plus interest in same right/capacity |
Income-tax treatment in Tax Year 2026-27
For a resident individual, interest on an ordinary bank fixed deposit is generally chargeable to income tax under the applicable income classification, commonly income from other sources unless it is properly attributable to a business. Taxability is determined by the applicable law and accounting or receipt principles, not by whether the bank deducted TDS. A cumulative deposit can accrue taxable interest before the final cash maturity, so taxpayers should reconcile annual bank interest certificates and the applicable reporting year. Tax Year 2026-27 falls under the Income-tax Act, 2025, which took effect from 1 April 2026; older assessment years continue under the 1961 Act. Tax computations should therefore use the correct year’s legislation and return schedules.
Section 393 bank-interest TDS thresholds
Section 393(1), Table serial number 5(ii), of the Income-tax Act, 2025 governs tax deduction on interest other than interest on securities paid by banking companies and certain other specified institutions. For Tax Year 2026-27, the published threshold is ₹1,00,000 for a senior citizen and ₹50,000 for a person other than a senior citizen. The bank ordinarily applies the prescribed rate in force, generally 10% for standard resident bank-interest withholding, subject to PAN and other applicable provisions. The threshold is measured on the aggregate interest relevant under the statute, not separately for each fixed-deposit receipt. The statute contains specific rules for branch-wise calculation where core banking is not adopted. A zero TDS deduction does not make interest tax-free.
A resident depositor who qualifies under the applicable self-declaration rules may submit Form 121, prescribed under the Income-tax Rules, 2026, instead of the earlier Forms 15G and 15H used under the old framework. Eligibility depends on the estimated tax position and additional statutory conditions; filing a declaration merely because interest is below a rebate threshold is not automatically valid. Incorrect declarations can create tax and compliance exposure. TDS, when correctly deducted and reported, is normally available as credit against the taxpayer’s final liability; if tax on the interest is higher, the balance may still be payable through advance tax or self-assessment. The bank’s TDS certificate and the tax portal’s information statements should be reconciled. Related guidance includes How to Avoid TDS on FD Interest and CBDT’s mandatory UIN system for Form 121.
No automatic five-year tax-saving deduction
The bob Golden Goal deposit runs for 555 days, substantially less than five years. It is not the prescribed five-year tax-saving bank deposit merely because it is called a fixed deposit. A deduction for a qualifying five-year tax-saving deposit under the relevant deduction provisions is subject to separate statutory requirements and, where applicable, the taxpayer’s tax regime. Senior-citizen interest deductions are also regime- and eligibility-specific and should not be confused with the bank’s preferential interest rate. In particular, the withholding threshold of ₹1,00,000 is not a tax-free exemption or an automatic deduction of ₹1,00,000.
GST on interest versus bank charges
Interest consideration on deposits is covered by the exemption for services by way of extending deposits, loans or advances in Notification No. 12/2017-Central Tax (Rate), serial number 27, as explained in CBIC guidance. Accordingly, ordinary interest earned on the fixed deposit does not attract GST merely because it is credited by the bank. The exemption for interest should not be stretched to all bank charges. A separately priced service fee, documentation fee or other taxable service can have its own GST treatment depending on the supply and current rate notification. Bank statements should distinguish gross interest, income-tax withholding and service charges; GST on a taxable charge is not an additional income tax on the deposit interest.
DICGC insurance and concentration risk
Deposit Insurance and Credit Guarantee Corporation (DICGC) protection for an insured bank is capped at ₹5,00,000 per depositor per bank in the same right and capacity, including principal and accrued interest. Multiple fixed deposits, savings balances and other insured deposits at different branches of the same bank are aggregated where held in the same right and capacity. The limit is not ₹5 lakh per FD, per branch or per certificate. Deposits at separate insured banks are evaluated separately, and genuinely different ownership capacities may be treated separately under DICGC rules. Coverage is subject to the statute and the specified insured-event conditions; it should not be described as an unlimited government guarantee of every rupee placed in the bank. See also Bank Deposit Insurance by DICGC – FAQs.
For example, if a depositor has ₹4,90,000 principal in a fixed deposit and ₹25,000 accrued interest in the same insured ownership capacity at the same bank, the combined ₹5,15,000 exceeds the normal ₹5,00,000 insurance ceiling by ₹15,000. Conversely, a deposit with ₹4,50,000 principal and ₹30,000 interest would be within the limit, assuming no other aggregated balance in that capacity. This illustrates the insurance cap, not the likelihood of any bank failure. Businesses and households should maintain a consolidated bank-wise deposit register so that deposit insurance and liquidity exposure are not mistakenly assessed receipt by receipt.
Accounting, audit and operational controls
A company or other entity preparing financial statements should recognise interest income under its applicable accounting framework, such as the effective-interest approach under Ind AS 109 where relevant or the applicable Accounting Standards and contractual terms for other entities. Presentation and accrual timing may differ from the bank’s payout date. Auditors should reconcile deposit confirmations, interest accruals, TDS, restrictions on premature withdrawal and whether any deposit is pledged or restricted. Treasury records should distinguish callable from non-callable deposits and disclose material restrictions when required. Renewal instructions and nomination details should be reviewed at the same time as the maturity date, especially where the bank may renew a deposit at the then-current rate.
A practical pre-booking control sheet should capture the bank’s exact product name, effective-rate date, customer residency and age, principal, tenure, payout choice, early-withdrawal status, applicable penalty, tax status, PAN, beneficiary details and aggregate deposits held with the bank. The approved rate sheet and deposit receipt should be retained together. For NRE or NRO deposits, FEMA eligibility, repatriation rights and income-tax treatment are materially different from an ordinary resident deposit and require a separate fact-specific review. This article deliberately avoids ranking the product against other banks or forecasting future interest rates.
Frequently Asked Questions
1. What is the bob Golden Goal fixed-deposit tenure?
The named scheme has a 555-day tenure. It is distinct from Bank of Baroda’s regular one-year and 444-day products.
2. What rates are shown for October 2026?
The bank’s official retail schedule effective 12 June 2026 shows callable rates of 6.75% for general customers, 7.25% for eligible resident seniors and 7.35% for eligible resident super-seniors. The separate non-callable rates are 6.80%, 7.30% and 7.40%, subject to amount and eligibility conditions.
3. Can a ₹2 lakh depositor receive the 6.80% non-callable rate?
Not under the published bob Advantage non-callable minimum: the bank specifies a single deposit above ₹1 crore and below ₹3 crore for that variant. The callable product has different eligibility.
4. Is the ₹1 lakh senior-citizen TDS threshold a tax exemption?
No. It is a withholding threshold under section 393 for the specified bank-interest category. The interest remains taxable under the applicable income-tax rules even where no TDS is deducted. See Form 121 guidance.
5. Does DICGC cover each fixed deposit separately up to ₹5 lakh?
No. DICGC aggregates eligible deposits in the same right and capacity at the same insured bank, including principal and interest, and applies one ₹5 lakh ceiling. See DICGC deposit-insurance FAQs.
6. Does GST apply to the interest earned on the FD?
Ordinary interest consideration on a deposit is exempt under the relevant GST notification. Separate taxable banking service fees, if charged, must be assessed independently.
7. Does the 555-day FD qualify for the five-year tax-saving deduction?
No. A 555-day ordinary term deposit is not the prescribed five-year tax-saving deposit. The applicable deduction and tax-regime conditions must be checked separately.
Key Takeaways
- The named product is a 555-day Bank of Baroda retail term deposit; the official rate schedule checked is effective 12 June 2026.
- Callable and non-callable deposits differ materially in minimum amount, liquidity and early-withdrawal rights.
- Tax Year 2026-27 bank-interest TDS is governed by section 393, with ₹50,000 and ₹1,00,000 thresholds for non-senior and senior payees respectively.
- Ordinary FD interest is taxable for income-tax purposes but is generally exempt from GST; DICGC cover is capped at ₹5 lakh per depositor per bank in the same right and capacity.
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Disclaimer: This article is a factual educational description of a named banking product and Indian tax and regulatory provisions checked against official sources as of 12 October 2026. It is not a deposit solicitation, product recommendation, comparative ranking, return guarantee, prediction or personalised investment, accounting, tax or legal advice. Rates and scheme terms may be revised, and actual entitlement depends on booking date, deposit amount, residency, age, account type, payout option, applicable deductions, PAN and bank confirmation. Illustrations are approximate and not contractual maturity quotations. Deposit insurance is subject to DICGC law and conditions, and all taxes must be assessed for the relevant tax year. TaxGuru accepts no responsibility for any loss, foregone interest, premature-closure charge, tax, penalty, liquidity restriction or other consequence arising from reliance on this publication.
