Bank of Baroda Tax Saving FD

What is a Bank of Baroda Tax Saving FD?

Bank of Baroda Tax Saving FD is a special fixed deposit scheme that helps individuals save tax while earning guaranteed returns. The minimum deposit is ₹100 and the maximum is ₹1.5 lakh in a financial year under Section 80C of the Income Tax Act. The deposit comes with a lock-in period of 5 years and a maximum tenure of 10 years. The rate of interest of Tax Saving FDs is 6.40% for general citizens and 7.00% for senior citizens, making it a good option for long-term tax planning and steady earnings.

How Does a Bank of Baroda Tax Saving FD Work?

Here’s how the Tax Saving Fixed Deposit Bank of Baroda functions step by step:

• Open the FD: Apply online through internet banking or mobile banking, or visit your nearest Bank of Baroda branch.
• Deposit the Amount: Invest any amount from ₹100 to ₹1.5 lakh in a financial year, as per Section 80C limits.
• Lock-in Period: Your money will remain locked for 5 years; premature withdrawal is not allowed.
• Interest Calculation: Tax Saving FD Interest is calculated on the deposited amount at fixed rates.
• Interest Payout: You are allowed to choose a monthly, quarterly, or cumulative payout.
• Maturity: At the end of 5 years, you receive the principal plus accumulated interest.

Bank of Baroda Tax Saving FD Highlights

The main features of the Bank of Baroda Tax Saving FD are given below in a simple table for quick understanding:

How to Open a Bank of Baroda Tax Saving FD?

The application process for Tax Saving FD Bank of Baroda is easy and available both online and offline. Below is a step-by-step guide for each option:

1. Online FD Opening

   Follow these steps to open a Bank of Baroda Tax Saving FD online:

   • Access Platform: Visit the Bank of Baroda website or download the official bob World app.
   • Log In: Sign in to your internet banking account.
   • Select FD Option: Go to the Fixed Deposit section and choose “Tax Saving FD.”
   • Enter Investment: Provide the deposit amount of ₹100 to ₹1.5 lakh and tenure of 5 to 10 years.
   • Choose Payout: Select your preferred interest payout option: monthly, quarterly, or cumulative.
   • Complete KYC: Verify your KYC details if not already updated.
   • Submit Application: Confirm the details and submit; the FD receipt will be generated online.

2. Offline FD Opening

   Follow these steps to open a Bank of Baroda Tax Saving FD at a branch:

   • Visit the Branch: Go to the nearest Bank of Baroda branch.
   • Fill Form: Complete the Tax Saving FD application form provided at the branch.
   • Submit Documents: Provide ID proof, address proof, and PAN card for verification.
   • Make a Deposit: Pay the investment amount through cash, cheque, or account transfer.
   • Receive Receipt: Collect the FD receipt as confirmation of your investment.

Who Should Consider Bank of Baroda Tax Saving FD?

The Bank of Baroda Tax Saving FD is designed for customers and groups with the following profiles:

• Tax Savers: Depositors looking to claim deductions under Section 80C.
• Residents & HUFs: This FD can be opened by resident individuals as well as Hindu Undivided Families (HUFs).
• conservative investors: Suitable for those who want fixed and guaranteed returns instead of market-linked options.
• Long-Term Planners: Investors aiming to save and grow funds over a 5-year horizon.

TDS on Bank of Baroda Tax Saving FD

Investments of up to ₹1.5 lakh per financial year in a Bank of Baroda Tax Saving FD are eligible for deduction under Section 80C. Tax Deducted at Source (TDS) is applicable if the interest earned exceeds ₹50,000 in a financial year (₹1,00,000 for senior citizens). However, residents can avoid TDS by submitting Form 15G or Form 15H, provided their taxable income is below the exemption limit and PAN details are updated with the bank.

Key Takeaways

The Bank of Baroda Tax Saving FD is a disciplined savings tool that provides tax benefits and stable returns. The minimum deposit is ₹100 and the maximum is ₹1.5 lakh in a financial year. The rate of interest of tax-saving FD is 6.40% for general citizens and 7.00% for senior citizens, with flexible interest payout options for added convenience. It comes with a mandatory 5-year lock-in period, making it suitable for long-term savings while offering deductions under Section 80C. The FD can be opened both online and offline, ensuring easy access for all investors.