Invest Long.. Get More on our Term deposit
Make Your return immune to interest rate fluctuation, Baroda Tax Savings Term Deposit Account.
- Only individuals and Hindu Undivided Families are allowed to open this tax saving fixed deposit. Deposits can be made in a single or joint name. As per Government of India guidelines, the Income Tax benefit is allowed to the first holder of this fixed deposit.
Amount of deposit:
- The minimum amount of deposit allowed is Rs. 100 and in multiples of Rs. 100. The maximum amount in a financial year is Rs. 1,50,000.
Tenure of deposit:
- The minimum lock in period for tax saving deposits is 60 months. The maximum tenure is 120 months.
Payment of interest:
- Interest is compounded quarterly in a tax saving FD. Interest is credited to the accounts at the end of the quarter. This is one of the best tax saving deposits features.
- Premature closure of such deposits is not allowed until the maturity of the tax saving FD. This is allowed only on the customer’s request. The bank will pay interest at 1% below the tax saving FD interest rate in such cases.
- Auto renewal of such deposits is allowed, but not under tax saving deposits scheme. The deposit will be renewed as a regular term deposit.
- The principal amount invested as a tax saving FD is allowed as a deduction to the first holder of the FD under Section 80C of the Income Tax Act. The maximum deduction allowed in a financial year is Rs. 1,50,000.
No TDS if Form 15H/15G submitted
- This FD is subject to TDS rules and regulations. The interest earned on this deposit is taxable. However, if your income is not liable to tax, you can submit a Form 15H/15G and the bank won’t deduct TDS on your interest
Beneficial rate to senior citizen
- Senior citizens can get a better rate of interest on such deposits. Bank of Baroda pays 0.5% over and above the tax saving FD rates to senior citizens. This is available for deposits below Rs. 1 crore.
Nomination facility available:
- It is possible to set up nomination for the tax saving FD.
- The tax saving FD can be transferred from one branch to another branch at the request of the customer. This can be done by submitting a written request to the branch where the customer has the tax saving FD.
Minor accounts for individuals
- It is possible to open a tax saving fixed deposit for minors as well. These tax saving deposits can serve as important means of financial planning for them.
- All individuals and HUF are eligible to invest in the product. It is most suitable for income tax payers like salaried persons, higher and middle-income group, retired persons etc.
- Deposit can be made in single name of an individual for himself or in the name of the Karta of the HUF OR in joint name.
- Joint account may be in the name of maximum two adults or jointly to an adult and a minor. As per Government's present Guidelines, in case of joint account/ joint holding of deposit, income tax relief will be available only to the first holder of the deposit.
- The firms, companies, trust, societies, clubs, institutions, corporates etc. are not allowed to invest under the product.
Period of the deposit
Minimum 5 years with a maximum tenure up to 10 years.
Minimum & Maximum Amount
- Minimum amount shall be Rs. 100/- & in multiples of Rs. 100/- .
- For availing Tax benefit maximum amount in a financial year - Rs. 1.50/- lacs
Premature Withdrawal Of The Deposit
Premature withdrawal of the deposits made under the scheme shall not be allowed before completion of 5 years except in case of death of the depositor.
Interest Payment & Tax Liability
- Interest will be computed on quarterly rest basis.
- Deposit can be made under RIRD/MIP/QIP scheme.
- In case of any request for prepayment of any time deposit before its due date, the Bank may do so after completion of minimum 5 years period, at its discretion and pay interest at 1% below the rate ruling on the date of making deposit, for the period for which the deposit has actually remained with the Bank.
- Interest on the deposit is liable to tax / TDS.
Loan / Overdraft Against The Security Of The Deposit
NO loan and/ or any type of credit facility shall be considered against the security of the deposit.
Nomination facility is available.
All Individuals and HUF.
Amount of Deposit
- Rs.100/- and in multiples of Rs.100/-
- Rs.1,50,000/- during a financial year
Tenure of Deposit
Minimum : 60 Months (minimum Lock-in period)
Maximum : 120 Months
Rate of interest
As per the maturity period of the deposit
Payment of Interest
Interest will be compounded quarterly.
At the request of customer Prepayment allowed only after completion of 5 years at its discretion and pay interest at 1% below the rate ruling on the date of making deposit, for the period for which the deposit has actually remained with the Bank
Deposit will be auto-renewed for a period of minimum 12 months but not in Tax saving scheme
Availability of Loan/ Overdraft
No loan and/ or any type of credit facility can be considered against the security of the deposit. The deposit cannot be taken as collateral security also
Deposit under the Scheme is subject to Govt. guidelines as applicable from time to time
Premature payment is not allowed as there is a lock-in period of 5 years. However, in case of death prepayment is allowed to nominee/ legal heirs as per the Banks guidelines.
- Rate of Interest to Senior Citizen: An Additional interest @ 0.50 % is payable for deposits below Rs.1 crore only.
- Nomination Facility: Nomination facility will be available
- Tax Deduction at Source: TDS will be deducted as per income Tax rules. No TDS will be deducted if a person submits form 15G/ 15H as applicable.
- Method of Calculation of Interest on or before Maturity: “In all cases of domestic term deposits where the terminal quarter is incomplete, interest should be calculated for the actual number of days, reckoning the year 365/366 days viz the calculation of interest on such deposits should be in order of completed quarters and days.” Interest will be calculated and compounded at quarterly rests.
- TDS Certificate: TDS certificate will be provided to all customers.
- Overdue Deposit: If renewal request is received after date of maturity, such overdue deposits will be renewed with effect from date of maturity at interest rate applicable as on due date provided such request is received within 14 days of maturity of deposit, after which interest for overdue period will be paid at the rate decided by Bank from time to time.
- Advance against Deposits: This facility is not available to Minor account in single name and HUF. If the interest is not deposited for more than 2 quarters, term deposit will be apportioned immediately.
- Interest Certificate available at request of customer
- Deposit Certificate – Term Deposit Receipt is provided
- Term Deposits can be transferred from one branch to other branch at the request of the customer.
- Mode of Payment: Maturity proceeds are credited SB/ CA account of the customer. In cases where there are no operative accounts of the customer, maturity proceeds can be given in cash below Rs.20,000 above which DD/ Pay Order will be issued.
- Minor Accounts can be opened for individuals above 10 years subject to maximum cap of Rs.1,00,000/-
Bulk Deposits (More than Rs.1 crore)
- Bulk deposits can be opened under any of the above mentioned schemes under retail time deposits.
- Bank reserves the right to accept the deposits above Rs.25 crores.
- Rate of interest for Bulk deposits is different from retail time deposits and is regularly updated on Bank’s website
- Bank reserves the right to accept request for premature payment as the same is agreed at the time of account opening by the customer. On acceptance of premature payment request, the penal clause will be same as in schemes under retail time deposits.
Bank of Baroda offers tax saving fixed deposits online and offline through their branches. Opening these is convenient and easy and can be done even in a matter of minutes.
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