Bank of Baroda Tax Saver FD

The Bank Of Baroda Tax saving tenure ranges from min 5 Year 1 Months 7 Days to max 10 Year 2 Days . The ROI ranges from 6.50% to 6.50 % for the general public. The lock-in period for this scheme is 10 Year 2 Days

Bank Of Baroda Tax saving Scheme for amount ranging from ₹ 100 to ₹ 1.5 L

The rate of interest for deposited amount ranging from ₹ 100 to ₹ 1.5 L is as below

Tenure

Interest Rate for General Public (p.a.)

Interest Rates for Senior Citizens (p.a.)

5 Year 1 Months 7 Days Upto 10 Year 2 Days

6.50% p.a.

7.50% p.a.

Upto 5 Year 1 Months 7 Days

6.50% p.a.

7.15% p.a.

Key features of Bank Of Baroda Tax saving Scheme

Summary of Bank Of Baroda Tax saving Scheme features :

Mutual Fund Schemes

Tax saving

CRISIL Rating

AAA CRISIL Rating

Lock-in Days

10 Year 2 Days

Loan Against FD

NA

Pre-mature Withdrawal

--

FD Nominee

Yes

Tenure

5 Year 1 Months 7 Days to 10 Year 2 Days

General Public

6.50% to 6.50 %

Senior Citizen

7.15% to 7.50 %

Amount

Rs.100 to Rs.1,50000

*Interest rates are subject to change at the discretion of the bank. These Interest rates are with effect from 10 November 2021.

Tax Benefits With Bank of Baroda Tax Saver FD

Bank of Baroda understands the needs of its customers and works hard to provide them with the tools that promise growth and savings. One such tool is - the Bank of Baroda tax saver FD. This tax-saving FD promises wealth creation by saving tax under Section 80C of the Income Tax Act in India. It has a lock-in period of 5 years and offers attractive interest rates.

Invest in BOB tax-saving FD and watch your funds grow over a designated tenure. This blog will guide you through the process and provide you with the BOB tax saver FD interest rate.

What is a Bank Of Baroda Tax Saving Scheme?

This is a unique sort of fixed deposit wherein the investor benefits from a tax break if they invest money in it. A maximum investment of INR 1.5 lakh is required to receive the Bank of Baroda tax saver FD tax benefit. However, there is a 5-year lock-in term for this type of deposit. Most people use tax-saving FDs for tax-saving purposes since they are thought to be less risky than other options and are an excellent option for anyone searching for a shorter lock-in time and willing to have assured returns.

Bank Of Baroda Tax Saving Scheme Interest Rates

The BOB tax saver FD interest rate is given below in the table:

Tenure Individuals Aged Less than 60 Years Senior Citizens Aged 60 or Above
For five years 5.50% 6.15%
Above five years to up to 10 years 5.50% 6.50%

 

Note- The mentioned interest rates are effective from July 28, 2022,

Eligibility Criteria

Customers must fulfil several requirements set forth by the Bank of Baroda to be eligible for the tax savings term deposit account. The following criteria must be met to obtain a tax savings term deposit:

  • A tax savings term deposit account is open to all people, including Hindu Undivided Families.
  • The product is best suited for income taxpayers, such as retired people, middle- and high-income groups, and salaried people.
  • The deposit into this account may be made in the Karta name of a Hindu Undivided Family, in a joint name, or the individual's name.
  • If a joint account is formed, it can be registered jointly in the adult’s and a juvenile’s names, but no more than two adults' names may appear on the account.
  • According to current government regulations, only the first holder of the deposit may claim income tax benefits if the deposit is held in a joint account.
  • Corporations, clubs, trusts, businesses, organisations, societies, and corporations are prohibited from investing in this product.

Documents Required

It becomes accessible for an investor to carry documents to save time. The records required are:

  • Permanent Account Number or PAN card
  • Aadhaar card
  • Passport
  • Ration card
  • Address proof
  • Age proof
  • Voter ID card

Key Attractions

The key attractions of the tax saving FD offered by Bank of Baroda are:

  • The minimum investment amount is INR 100 and after that, its multiples
  • Senior citizens get an additional 0.50% rate of interest
  • The bank offers its former employees and current employees interest at a rate of 1% over the standard ROI.
  • The bank also accepts deposits through the RIRD, MIP, and QIP programmes.
  • After the maturity date, the bank must renew the term deposit under the Bank of Baroda Tax Savings Term Deposit programme under the standard term deposit scheme for an additional 12 months.
  • In rare cases, the bank may permit account closure before the maturity date; however, in those instances, the bank must permit an interest rate that is 1% less than the ROI applicable on the day the term deposit was opened for the term deposit account's maintenance.
  • You can reduce your tax burden and earn high-interest rates with BOB’s tax-saving FD. The deposit will not be affected by changes in the market, allowing you to grow your money confidently.
  • Even though a conventional FD will be taxable, it may have several features.

Features and Benefits

The features and benefits of the Bank of Baroda tax saver FD are:

  • It has a five-year lock-in or maturity period.
  • The maximum tax rebate allowed in a fiscal year is INR 1,50,000.
  • When opening a tax-saving FD account, you must go through the Know Your Customer (KYC) process.
  • It allows for tax rebate claims from individuals, Hindu undivided families (HUF), and NRIs.
  • You can invest between a minimum amount of INR 100 and a maximum amount of INR 1,50,000.
  • Earned interest is taxed.
  • There is also a nomination facility accessible.
  • On interest generated, a TDS, or tax, will be deducted at the source.
  • This FD cannot be withdrawn before maturity, which is five years.
  • You receive a fixed interest rate from it.
  • There is no option for a loan against a tax-saving fixed deposit.
  • Upon request from a customer, their tax-saving FD can be shifted to a different BOB branch.

How to Apply for the Bank Of Baroda Tax Saving Scheme

Bank of Baroda has always worked towards making its customers happy. Understanding the need of the hour, the bank offers online and offline methods to apply for the Bank of Baroda tax-saver FD.

Online Method

Steps to be followed to invest in BOB tax saver FD using the online method are as follows:

  • Visit the official website of Bank of Baroda
  • Click on ‘Accounts’, a drop-down menu will appear
  • Under the heading ‘Term Deposit’, select ‘Fixed Deposit’
  • The next page will feature all the fixed deposit schemes offered by Bank of Baroda
  • The section Baroda Tax Savings Term Deposit Account will have two options - ‘Apply Now’ and ‘Know More
  • If you want to learn more about the Baroda tax saving term deposit scheme, opt for ‘Know More’ and the page will feature a piece of detailed information. If you want to apply for it, click on ‘Apply Now
  • The new page will ask you to fill out details like your bank account, name, and verification code. Enter the details, agree to terms and conditions and click on ‘Proceed’.
  • After making an initial investment, you will receive an acknowledgement slip.
  • The same can be tracked through your bank statement.

Offline Method

Steps to be followed to invest in BOB tax saver FD using the offline method are as follows:

  • Visit the nearest Bank of Baroda branch
  • Meet with a bank representative and enquire about the tax saver FD
  • Fill out the application form and attach the self-attested documents
  • The representative shall guide you through the rest of the process

Download Bank Of Baroda Tax Saving Scheme Application Form

You can download Bank of Baroda tax saving scheme application form from the Bank of Baroda website. Following instructions can be adhered to

  • Visit the official website of Bank of Baroda
  • Under the ‘Accounts’ drop-down menu, choose ‘Fixed Deposit’
  • The page will provide you with an overview of the fixed deposit. Locate ‘Download Forms’ on the right side of the screen towards the end
  • A new window will open, mentioning all the forms available to download. You can download the form you want from the list.

Frequently Asked Questions (FAQs)

What is Baroda tax saving FD?

Baroda tax saving FD offers tax benefits up to INR 1.5 lakhs under Section 80C of the Income Tax Act.

How much amount of FD is tax-free?

Interest income of INR 10,000 or more will be liable to pay TDS or Tax Deducted at Source. However, deposits of up to INR 1.5 lakhs will enjoy the tax benefits.

Is it reasonable to invest in the Bank Of Baroda Tax saving Scheme?

You must first study the Bank of Baroda tax saving scheme to check if it is a good investment scheme.

Is tax saver FD a good investment?

Yes, tax-saver FD is a good investment option. An investor enjoys tax benefits of up to INR 1.5 lakhs under Section 80C of the Indian Income Tax Act, 1961.

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