Money won’t grow in your mattress.
It will grow in a Fixed Deposit!

    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.

    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 Bank of Baroda 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. 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.

    Baroda Tax Savings Scheme Interest Rates

    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.

    Frequently Asked Questions

    1. What is the minimum and maximum tenor of the Baroda Tax Savings Term Deposit?

      The minimum tenor for the Baroda Tax Savings Term Deposit is five years and the maximum is 10 years.

    2. What is the minimum limit and the maximum limit for deposits under the Baroda Tax Savings Term Deposit?

      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.

    3. What is the rate of interest applicable for Baroda Tax Savings Term Deposit?

      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.

    4. Do senior citizens receive a special rate of interest in Baroda Tax Savings Term Deposit?

      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.

    5. What documents do I need when opening a Baroda Tax Savings Term Deposit account?

      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.

    Useful Information on BOB Fixed Deposit

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