Headquartered in Vadodhara (earlier called Baroda), Bank of Baroda was established over 100 years ago, in 1908, by the then Maharaja of Baroda, Sayajirao Gaekwad III. It is the second largest public sector bank in India, after the State Bank of India. It is one of the few Indian public sector banks that has a huge global presence, with 107 branches across 22 countries, including branches in key locations like New York, Hong Kong, London, Dubai, Brussels and Singapore.
The NRE savings accounts offered by this bank are divided into regular and premium packages, with only the latter offering some good benefits.
Bank of Baroda NRE Account Features
- Interest rate of 4% p.a., calculated on daily balances in the savings account. Interest is paid on a half-yearly basis.
- Interest rate on fixed deposits vary according to the tenure, averaging about 6.6% p.a.
- Free remittance for beneficiaries with accounts in any of the Bank of Baroda branches in India. This facility is only available for premium account holders.
- Free international Visa card, acceptable across ATMs, online and retail establishments within and outside India.
- Preferential exchange rates for currency conversions are available for premium account holders.
- Free custodial services offered.
- Locker facility in many branches
- Customers can issue demand draft/bankers cheque free of charge.
- Quarterly average balance of ₹50,000 needs to be maintained for NRE savings accounts. Failing to do so could attract penalty of ₹500.
- Travel cheques and collection of cheques drawn on one’s own account are free of charge.
- No charges are levied for currency notes tendered during personal visits.
- Online banking and mobile banking services are available through Baroda Connect and Baroda M-Connect
- Inward remittances can be made in any convertible foreign currency, through SWIFT, telegraphic transfers, demand drafts, mail transfers and Telex.
- Low interest rates, as compared to other banks like YES Bank, SBI and RBL, for both savings accounts and fixed deposits.
- The regular NRE savings account cannot receive deposits from other NRE savings or FCNR accounts of other banks. Local rupee cheques also not accepted.
- The bank lags behind most others in terms of technology solutions that are offered by almost all private sector banks
- No benefits like loans or mutual funds for NRIs
- Extremely poor customer service and response times for addressing queries
- Limited remittance facilities
- No facility to appoint a mandate
- Extensive global presence
- Reliability that comes with an old, established, public-sector bank
- Locker facilities
- Low minimum average balance requirements and that too quarterly, as opposed to monthly.
- No high transaction and service charges
- Low interest rates
- Technology issues
- Poor customer services
- Complicated remittance facilities
- Absence of many modern banking facilities, unlike private sector banks