Bank of Baroda (BOB) Tax Savings Term Deposit account allows you to claim a deduction in your tax through Section 80C of the Income Tax Act. This product gives you the benefit of a traditional term deposit along with tax benefits. The tenure of the Fixed Deposit (FD) has to be of at least 5 years. You can deposit up to Rs. 1,50,000 in a financial year. The deposit amount must be at least Rs. 100. And thereafter the deposit has to be in the multiples of INR 100. You can open a single or joint account.
In this post, we will discuss Bank of Baroda Tax Saving Fixed Deposit Fixed Deposit account features, eligibility, tenure, types of accounts, interest rates, other benefits, and frequently asked questions.
Several tax-saving avenues are available in the market to cut down your income tax liabilities towards the department. Bank of Baroda has an FD Scheme that serves the same intention. Here are the features of BOB Tax Savings Fixed Deposit:
BOB Tax Saving FD Interest Rate is equal to the applicable ROI for other FD (Fixed Deposit) schemes for the same tenure shall be applicable subject to the following exceptions:
Payment of Interest:
Here are a few other benefits of this Bank of Baroda Fixed Deposit Scheme:
Deposits under the Bank of Baroda Tax Savings Term Deposit scheme are subject to Government guidelines circulated from time to time.
Here are the frequently asked questions:
The account can be opened by the applicant by visiting any of the bank’s branches and submitting the required documents. If you already have a savings account in the bank, you are required to just fill a term deposit opening form which is easily available in the branches. In this case, no extra document is to be furnished by the applicant.
In case you are new to the bank, you will require opening a new savings account first by furnishing fresh KYC documents and recent passport-size photographs. The bank shall examine the documents along with the application form and a savings account shall be opened in your name. After the opening of the savings account, you may deposit the required amount in the account and proceed with the opening of a fresh term deposit under Bank of Baroda Tax Savings Term Deposit as detailed in the previous step.
The account can be opened in single as well as joint names. The joint accounts can be opened for a maximum of 2 individuals where the 2 individuals can either be adults or a combination of an adult and a minor. Tax benefits can be enjoyed by only the first holder of the account.
For single accounts only individuals and Karta of a Hindu Undivided Family are eligible.
There is no facility for premature account closure. Premature closure is only allowed when the account holder passes away. In this case, payment is done to the nominee of the account holder as per bank rules and guidelines.
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