Tax Saving Fixed Deposit (2024)

• BARODA TAX SAVING - RIRD
• BARODA TAX SAVING - MIP
• BARODA TAX SAVING - QIP

The product targets customers intending to invest money for availing the rebate under Section 80C of the Income Tax Act, in the form of a Term Deposit for a period of not less than 5 years.

All individuals and HUF are eligible to invest in the product. It is most suitable for income tax payers like salaried persons, higher and middle-income group, retired persons etc.
The firms, companies, trusts, societies, clubs, institutions, corporate etc. are not allowed to invest under the product.

Minimum Deposit of amount shall be Rs 100, thereafter in multiple of hundreds, subject to maximum deposit amount in a financial year is not to exceed Rs 1,50,000 for availing tax benefit.

The term deposit should be for a period not less than 5 years. However, maximum tenure of the deposit will not exceed 10 years.

• Term deposit can be in single and joint name.
• The single name deposit is to be issued to an individual for himself or in the capacity of the Karta of the Hindu Undivided family.
• Joint account may be in the name of maximum two adults or jointly to an adult and a minor. As per Government’s present Guidelines, in case of joint account/ joint holding of deposit, income tax relief will be available only to the first holder of the deposit.

Prevailing rate of interest for fixed deposits.

• Senior Citizen: An Additional interest @ 0.50 % is payable.
• Staff/Ex-staff: As per Bank guidelines issued from time to time (Presently additional interest 1% is payable).
• Ex-staffs who are Senior Citizen: shall get both the benefits of Staff rate as well as Senior Citizen interest rate.

• Interest will be computed on quarterly rest basis similar to our usual fixed deposit scheme.
• Deposit can be accepted under our RIRD/MIP/QIP scheme.
• At the request of customer Prepayment allowed only after completion of 5 years at its discretion and pay interest at 1% below the rate ruling on the date of making deposit, for the period for which the deposit has actually remained with the Bank. If the branch has paid any interest on such a deposit, the excess amount of interest paid, if any, should be recovered from the principal amount at the time of prepayment of deposit.
• Interest on the deposit is liable to tax. Tax on interest payable on deposit is to be deducted at source as per the extant guidelines of the government from time to time.

• Term deposit can be in single and joint name.
• The single name deposit is to be issued to an individual for himself or in the capacity of the Karta of the Hindu Undivided family.
• Joint account may be in the name of maximum two adults or jointly to an adult and a minor. As per Government’s present Guidelines, in case of joint account/ joint holding of deposit, income tax relief will be available only to the first holder of the deposit.

• The general rules governing the Banks Term Deposit scheme other than specified above will also be applicable to the accounts opened under product.
• The receipt or Account of Term Deposit under the scheme can be transferred to any other Branch of our Bank as per our Normal procedure.
• Deposit under the Scheme is subject to Govt. guidelines as applicable from time to time.