The Tax Savings Term Deposit from Bank of Baroda is designed to help customers save money on tax and derive effective yields. Customers can open it either as a single account or a joint account for a tenure of five years to ten years and gain eligibility for tax benefits.
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 Bank of Baroda tax savings term deposit:
| 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. Deposits can be made under RIRD / MIP / QIP scheme |
| Rate of Interest | As applicable to term deposits depending upon the choice of the depositor. The lowest returns can be 5.25% and the highest is 7.5%. 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. |
| Loan against the scheme | Not available |
| Nomination facility | Available |
| Premature withdrawal | 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. |
| Tenors | Existing rate for Public | Revised for Public w.e.f 05.10.2015 | Existing rate for Senior Citizens | Revised rate for Senior Citizens w.e.f 05.10.205 | ||||||||||
| 7 days to 45 days | 5.50% | 5.25% | 5.75% | 5.50% | ||||||||||
| 46 days to 179 days | 6.75% | 6.50% | 7% | 6.75% | ||||||||||
| 180 days to 210 days | 7% | 6.75% | 7.25% | 7% | ||||||||||
| 211 days to 365 days | 7.25% | 7% | 7.50% | 7.25% | ||||||||||
| 365 days to 455 days | 7.5% | 7.25% | 7.75% | 7.50% | ||||||||||
| 456 days to 730 days | 7.75% | 7.50% | 8% | 7.75% | ||||||||||
| Two years to three years | 7.75% | 7.50% | 8% | 7.75%
| Three years to five years | 7.25% | 7% | 7.50% | 7.25% | Five years to ten years | 7.25% | 7% | 7.50% | 7.25% | |
*The rates are applicable as on 2nd December, 2015. Interest rates are subject to the bank’s discretion and can be changed at any time in the future.
The minimum tenor for the Baroda Tax Savings Term Deposit is five years and the maximum is 10 years.
The minimum amount of money that customers can deposit under the Baroda Tax Savings Term Deposit is Rs.100 and the maximum is Rs.1,50,000.
The rate of interest applicable for Baroda Tax Savings Term Deposit is subject to change over a period of time but will be updated on the bank’s website as well as each branch of the bank.
Yes, senior citizens have an extra mark-up on interest rates and will receive 0.50% more for deposits in comparison with regular depositors. However, the mark-up is subject to the bank’s discretion and the rates will be updated on the bank’s website whenever there is a change.
A duly filled and signed AOF (Account Opening Form) along with the applicant’s photographs and he KYC (Know Your Customer) documents must be submitted to the bank when opening a Baroda Savings Term Deposit account. A proposed amount for the term deposit must also be paid to the bank when submitting the documents.
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