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 5.30% p.a. For 5 years and above
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.
BOB Tax Saver Interest Rates Below Rs.2 crore
Tenors
For General Citizen (w.e.f. 2 June 2020)
For Sr. Citizen (w.e.f. 2 June 2020)
181 days to 270 days
4.40%
4.90%
271 days & above and less than 1 year
4.40%
4.90%
1 year
5.10%
5.60%
Above 1 year to 400 days
5.10%
5.60%
Above 400 days and up to 2 Years
5.10%
5.60%
Above 2 Years and up to 3 Years
5.10%
5.60%
Above 3 Years and up to 5 Years
5.30%
5.80%
Above 5 Years and up to 10 Years
5.30%`
6.30%*
Note: Due to the outbreak of COVID-19, the Bank of Baroda has agreed to pay additional rate of 100bps in "Above 5 years to up to 10years" tenor to Resident Indian Senior Citizen. This rate will be valid till 30 September 2020.
FAQ on BOB tax saver
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.
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.
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.
What is the maximum limit for a tax saver deposit?
It is Rs.1.5 lakh.
Is it possible to increase the deposit amount after opening the FD?
No. Unfortunately, this will not be possible.
What is the minimum deposit amount?
You can open a fixed deposit under this scheme by depositing only Rs.100 on a monthly basis.
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It is a very simple process to open a fixed deposit account with Bank of Baroda. The lock in period is for five years. They provide a very good interest on my savings. The process at the bank is also good. There are no hassles in the overall experience.
I have done one time investment fixed investment in Bank of Baroda, it has five year of locking period. The interest is nominal for the FD, I believe BOB give the interest around 8% , however there was no proper information regarding the interest. My father have taken this FD on my name, every year I deposit the amount.
I have a fixed deposit account with Bank of Baroda and the process to get this account done was easy. The customer services are good and the interest rate is also to my satisfaction. I have taken a loan recently on this account. It just took half an hour for the process for the loan.
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7
BISHWAJEET KUMAR
, dhanbad
Reviewed on Oct 14, 2017
I had Fixed Deposit account with Bank of Baroda about quite long back. The tenure period is six years and the fixed amount is four to five lakhs. The percentage of interest rate is quite good and they returned the money back with the promised interest amount.
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4
DUMPALA SRINIVAS
, hyderabad
Reviewed on May 09, 2017
I had opened my Fixed deposit with saving account in BOB. With hassle free opening through netbanking it was more comfortable. I could view the current interest and period of time was transparent in the website. They used to provide interest on quarterly bases. I paid bulk amount single time with good interest credits.
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11
RAGHVENDRA SINGH INDA
, jaipur
Reviewed on Nov 14, 2016
My parents were actually guiding me and its based on their advise, I decided to invest in Bank Of Baroda for FD. BOB has offered a very good rate and it is very much reliable. The tenure of the deposit is 5 years and this FD was taken before 3 years.
I was provided the highest interest rate and reminder of matured term deposit has been informed to me on the very next day which saved the interest loss to me . It seems to be very simple to renew the MTD (matured term deposit) at the latest updated interest rate.
Bank of Baroda is offering 7% interest rate currently for the Fixed deposit plan with the tenure of five year. Initially they were offering 8% but now it has been reduced. The minimum amount to start the plan is rs.1000 there is no activation charges. I visited the bank to avail the facility and within five to ten minute the plan was activated.
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11
VISHNU MAHENDAR K
, chennai
Reviewed on May 17, 2016
Its really easy to open a fixed deposit with Bank of Baroda and they do offer a good interest rate based on the market price for this account.The customer service provided was good and I have been using this account for few months and waiting for the benefits.Its after 7years I will be getting double the amount through this fixed deposit. Customer Responsiveness is good.
I hold a fixed deposit with Bank of Baroda. It has been a satisfactory experience with them for the eight years I am banking. There is always a response from the bank. The services are good too. The rate of interest is good. No charges taken for any kind of facilities.
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9
SASHI BHOOSHAN
, thrissur
Reviewed on Feb 19, 2016
The services was excellent by BANK OF BARODA for the Fixed Deposit product. I will get one 1% above than the normal rate because I am working for this bank. I can easily monitor the details being as a employee. They should have the attractive schemes like double one double offer which will be really attract the customers.
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11
KARTHIKEYAN SELLASAMY
, chennai
Reviewed on Nov 27, 2015
This is second year running for me and particularly I opened the fixed deposit for my daughter. With Bank of Baroda I have an account as since last five years and so I went with them. 8.3% is the rate for deposit and this is for year. And this is compounding rate. Over draft is also present.
Recently I opened an Fixed Deposit account with BANK OF BARODA for the purpose of tax deductions. This is the only reason I invested some money with them. I personally opened this account with them. The interest rates were nominal when compared with other banks. Customer service is also good. And nice servicse
Mainly I opened an Fixed Deposit account with BANK OF BARODA for the purpose of tax deductions. This is the only reason I invested some money with them. I personally opened this account with them. The interest rates were nominal when compared with other banks.
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3
SUJIT KUMAR VISHWAKARMA
, bhopal
Reviewed on Sep 15, 2015
I hold a Fixed Deposit Account with BANK OF BARODA for more than eight years. I opened this account under the Double Amount Scheme. It is the only bank which offers 94 months time period for making payments. Under this scheme what are the amount I am making it will get doubled at the end. When compared with other banks BOB is the best bank to hold an F D account.
Rate of interest on fixed deposit is much higher in Bank of Baroda than other nationalized banks. More than that it is compounding and it accumulates yearly once. Penalty charge is of 1%, suppose customers want to break the policy in middle of the availed tenure period.
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4
NAVDEEP NARULI
, chandigarh
Reviewed on Sep 12, 2015
Interest rate offered by Bank of Baroda for the fixed deposit plan is 10% and the minimum lock in period is for 3 months . There is no any activation charges and also no penalty in case we break the plan in between the tenure. The only thing is that we cant do any bargain in terms of the interest rate were as we can do with other banks. After the maturity the amount will be credited to the account automatically.
My experience with BANK OF BARODA is good.Customers service of this bank is excellent and is satisfactory.
The branch is keep updating us about maturity and the new plans through SMS and E-mails. currently i have 3 FDR with bank and i m very happy with the return.
Its the Best investment i have ever done.
My experience with bank of baroda is good.bank of baroda interest rate is average and it's some high compared to other some bank. Customers service of this bank is excellent and is satisfactory as well as charges for this is high. My experience is good with thos bank
In bank of Baroda i have an fixed deposit plan. Through which i am getting 9.75 % interest rate for my deposit amount.I renew the tenure of the FD every year. In case if we plan to take the money in between the we will be charged the penalty. The customer service is good in the particular branch which i used to visit.
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19
HARDIK SORATHIYA
, mumbai
Reviewed on Jun 16, 2015
Fixed Deposit
