Overview of Saraswat Bank Fixed Deposit

About Saraswat Bank

Saraswat Bank came into being in the year 1918 and is one of the oldest banks of India. The bank is the first cooperative bank to provide merchant services. In the year 1988, the Reserve Bank of India conferred the bank with the ‘scheduled’ status. Saraswat Bank implemented core banking solution in the year 2004 leading to convenient online transactions.

Saraswat bank offers a wide range of banking products and services to its customers. There are various banking channels that customers of this bank can choose to avail. For example, online banking platform, SMS banking, mobile banking ATMs etc. Saraswat Bank functions in numerous banking verticals like asset management, corporate banking, private banking, treasury and NRI banking.

Saraswat offers a range of fixed deposit schemes for its customers to choose from. With flexible tenures and great rates of interest, Saraswat Bank makes sure you get the most out of your fixed deposit. Saraswat Bank fixed deposits are a great way of saving money for your special times as well as times of need.

These deposits are low-risk financial instruments meant for people who want to save as well as grow their money but are cautious of taking risks.

What is the eligibility criteria to avail fixed deposit scheme from Saraswat Bank?

The following are the entities that are eligible to open a Fixed Deposit with Saraswat Bank –

• Resident Individuals
• Minors by guardians
• Organizations
• Cooperative Societies
• Non-resident Indians

What are all the fixed deposit schemes offered by Saraswat Bank?

Saraswat Bank offers two types of fixed deposit schemes for its customers.

• Kalpataru Deposits This fixed deposit scheme reinvests your money (principal + interest) earned every quarter so as to help you make the most of your money
• Madhukar Tax Savings Deposit This fixed deposit is a tax-saver scheme which helps customers save tax on the interest earned on their fixed deposit amount

What is the minimum deposit amount required to open Saraswat Bank FD?

The minimum deposit amount required to open FD with Saraswat Bank is INR1000 and thereby in multiples of 100.

What is the maximum limit on deposit amount for opening a fixed deposit scheme with Saraswat Bank?

There is no maximum limit on the deposit amount for opening a fixed deposit account with Saraswat Bank. However, amounts higher than INR3 Crore may be required to furnish additional documents and proofs.

What is the minimum and maximum deposit tenure for fixed deposits of Saraswat Bank?

The minimum period for which a fixed deposit can be opened with Saraswat Bank is 7 days while the maximum deposit period is 120 months or 10 years.

How do I avail a fixed deposit account with Saraswat Bank?

You can apply for a fixed deposit account by walking in to any of the Saraswat Bank branches and filling up a simple application form.

What are the rates of interest on Saraswat Bank FD schemes?

The interest rates Saraswat Bank FDs vary according to their deposit period. These rates are competitive with respect to other banks and attractive too. The rates start at 6% p.a. for very short-term deposits and go up to 8.75% p.a. for fixed deposits with a tenure of 5 years or more. The rate remains constant at 6% p.a. for deposits with a period between 30-120 days. It increases to a considerable 8.75% for deposit periods between 1-2 years.

Is there a tax-saver fixed deposit scheme with Saraswat Bank?

Yes. The Madhukar Tax Saving Deposit offers an income tax exemption under section 80C of the Income Tax Act. This deposit needs to be with the bank for 5 or more years.

Are fixed deposits by Saraswat Bank taxable?

Yes. Fixed deposits of Saraswat Bank are taxable. There are two cases that arise for fixed deposit schemes. One, where the customer has not furnished his/her permanent account number (PAN) and second where the customer has furnished his/her PAN. If PAN isn’t furnished and the depositor earns more than INR 10K as interest in a financial year then tax at 20% is charged. If PAN is provided and interest earned is more than INR 10K then tax is charged at 10% of the interest amount.

What are some of the most important features of Saraswat Bank fixed deposits?

Here are a few exciting and differentiating features of Saraswat Bank fixed deposits:

• Deposit tenures are flexible and can be chosen by the customer
• Attractive rates of interest
• Tax-saver scheme is separately available for tax-saving purposes
• Pre-closure facility is available as per guidelines by the bank but a penalty is charged
• Loans can be availed against fixed deposits; this is dependent on sole discretion of the bank

Can I avail loan from Saraswat Bank if I have a fixed deposit with them?

No. Based on bank guidelines, loans cannot be availed from Saraswat Bank, against deposits held by customers with the bank.

Are special rates offered to senior citizens on fixed deposits of Saraswat Bank?

Yes. Special and higher rates of interest are offered to senior citizens who hold a fixed deposit with Saraswat Bank. These rates are 0.5% higher than the regular rates offered.

Can I avail a credit card against Saraswat Bank fixed deposit?

No. Currently, customers cannot avail credit cards against their Saraswat Bank FD.

Are there special FD schemes for NRI customers?

Yes. Saraswat Bank offers separate fixed deposit accounts for non-resident Indians.

Does Saraswat Bank allow premature withdrawal of fixed deposits?

Yes. Fixed deposits can be withdrawn prematurely but this attracts a penalty charge which depends upon bank’s discretion.