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    Baroda Tax Saving Term Deposit

    Bank of Baroda (BoB) offers the Baroda Tax Saving term Deposit that gives a tax benefit under Section 80C of the Income Tax Act in India. A deduction of up to Rs.1.5 lakh can be claimed for investing money in this type of Fixed Deposit (FD). BOB FD rates are revised and updated from time to time. The bank recently revised interest rates with effect from January 1, 2018, for tax saver FDs.

    Eligibility Criteria to Open Baroda Tax Savings Term Deposit

    Bank of Baroda has laid down certain criteria that customers are expected to meet if they want to qualify for the tax savings term deposit account. Following are the criteria that must be matched to take out a tax savings term deposit:

    • All individuals and Hindu Undivided Families qualify for a tax savings term deposit account.
    • The most suitable candidates for the product are income tax payers such as retired persons, middle- and high income groups and salaried individuals.
    • The deposit into this account can either be made in an individual’s name for themselves, or in the Karta’s name of a Hindu Undivided Family or in joint name.
    • If a joint account is opened, the same must bear the name of a maximum of two adults, or it can be registered jointly in the name of an adult and a minor.
    • The present guidelines set by the government dictate that if it is a joint holding of deposit / joint account, income tax benefits can only be claimed by the first holder of the deposit.
    • Corporates, clubs, trusts, firms, institutions, societies and companies cannot invest in this product.
    Account Type Term Deposit Account
    Deposit Amount
    • The minimum amount that can be deposited into this account is Rs.100 and in multiples thereof.
    • Customers who wish to avail tax benefits can deposit a maximum of Rs.1,50,000 per financial year.
    Rate of Interest
    • An interest rate of 6.50% p.a. For 5 years & 6.25% p.a. for a tenure more than 5 years to 10 years
    • Senior citizens get an extra 0.5% return on their investment.
    • Interest is calculated on quarterly rest basis. Interest on the deposit is liable to tax / TDS.
    Period
    • The minimum tenure of the deposit is five years and the maximum is ten years
    TDS
    • Tax benefits provided under section 80C of Income Tax Act, 1961, subject to a maximum deposit of Rs.1,50,000.
    • TDS will be deducted if interest income is more than Rs.10,000 in a financial year
    • For senior citizens, TDS will be applicable if the interest earned is more than Rs.50,000 in a given financial year
    Loan against the scheme
    • Not available
    Nomination facility
    • Available
    Premature
    • Customers cannot withdraw any deposits made under the scheme until five years of the term have lapsed.
    • The only exception for premature withdrawals is the death of the depositor.

    Faqs on BOB tax saver

    1. Can a Baroda tax saver deposit be opened online?

    If you are an existing Bank of Baroda (BOB) customer and have an active internet banking account, you will be able to open the tax saver term deposit online by following a set of simple instructions.

    2. Can you close a tax saver deposit online? 

    All tax saver deposit can be opened online but when it comes to closing, these term deposits cannot be closed before a minimum period of 5 years is completed.

    3. What is the maximum tenure for this type of FD? 

    The maximum number of years is usually 10 years. If you want to extend the tenure, you will have to renew the deposit for 5 years or 10 years.

    4. Is nomination and joint account facility available? 

    Yes.

    5. What is the maximum limit for a tax saver deposit? 

    It is Rs.1.5 lakh.

    6. Is it possible to increase the deposit amount after opening the FD?

    No. Unfortunately, this will not be possible.

    Useful Information on BOB Fixed Deposit

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