Key Benefits

• Deposits under the scheme eligible for deduction from taxable income under Sec. 80CC of Income Tax from financial year 2005-06 (Assessment Year 2006-07).
  
  
• Rate of interest on deposits is 8% w.e.f. 1.3.2003.
  
  
• Accounts transferable between different bank's branches.
  
  
• Any Individual/Hindu Undivided Family/Association of persons can open a PPF A/c.
  
  
• Only one PPF account is permissible per individual in any one of the authorised banks/Post offices in India.
  
  
• Nomination facility is available to more than one individual under PPF scheme.
  
  
• A maximum number of 12 instalments can be paid in a year with a minimum of Rs.500/- for every instalment. There is a ceiling of Rs.70000/- per year on the deposit amount. Excess amounts will be charged with interest.
  
  
• Only one withdrawal is allowed during a year, with the first withdrawal from the account permissible only 5 years after the opening of the account. The amount of withdrawal is limited to a 50% of the total amount deposited.
  
  
• The account achieves maturity after a lapse of 15 years and can be closed at the time or renewed for a block of another 5 years.
  
  
• The first loan can be availed at the end of 3 years of the opening of the account upto 25% of the balance in the account.
  
  
• Subsequent loans can be taken only when the first loan amount is fully paid back. No loans are issued on a PPF account after the expiry of a -6- year term period.
  
  

Senior Citizens Savings Scheme 2004

Bank of Baroda also operates Senior Citizen Savings Scheme 2004 launched by Govt. of India for Senior Citizens of the country, across its network of select -311- branches, all over India, which are undertaking PPF business, w.e.f. 1.11.2004.

Key Benefits

• The Scheme is available to Senior Citizens Age 60 years (50 years for those who have retired under a voluntary or special voluntary scheme).
  
  
• Rate of Interest on deposits is 9%, payable quarterly. However, interest is fully taxable.
  
  
• Deposit Account can be opened in a single name or jointly with spouse.
  
  
• Nomination facility available to depositors.
  
  
• Investment can be made in multiple of Rs.1000/- with a maximum investment limit of Rs.15,00,000/-.
  
  
• Tenure of the deposit is 5 years which can be extended for further 3 years.
  
  
• Facility for premature withdrawal available after one year on payment of penalty.
  
  

Government of India 8% Savings Bonds 2003 (Taxable)

Bank of Baroda offer facility of issuance of GOI 8% Savings Bonds 2003 (Taxable) through its network of select -139- branches all over India.

Key Benefits

• Bonds can be issued to resident Indian, in individual or joint names/on behalf of a minor as father/mother/legal guardian.
  
  
• Bonds can also be issued to Hindu Undivided Family, Charitable Institution and University.
  
  
• Bonds bear interest @ 8% p.a. No interest would accrue after the maturity of Bonds.
  
  
• Bonds (Non-Cummulative) -Interest will be payable at half yearly intervals upto 31st July and 31st January by crediting holder's a/cs or issuing cheque.
  
  
• Bonds (Cummulative) -Interest will be compounded with half yearly rests and payable on maturity along with the principal amount.
  
  
• The interest earned under this scheme is taxable under the Income Tax Act, 1961, according to the relevant tax status of the Bondholder.
  
  
• The Bonds shall not be tradable in secondary markets and will not be available as collateral for loans.
  
  
• The bond shall be repayable on the expiry of -6- years from the date of the issue.
  
  
• The maturity value of the bond shall be Rs.1601/- for every Rs.1000/-.
  
  
• These Bonds are non-transferable.
  
  
• Investment can be made with minimum Rs.1000/- and in multiple thereof with no maximum limit.
  
  
• Nomination facility is available.