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Opt for bob Tax Saving Fixed Deposit and get multiple benefits.

bob Tax Saving Fixed Deposit Account

Invest for a long period of time to get more on our term deposit. Make your return immune to interest rate fluctuation with Baroda Tax Savings Term Deposit Account.

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  • Features
  • Most Important Terms and Conditions (MITC)

bob Tax Saving Fixed Deposit Account : Features

Scheme Variant
  • BARODA TAX SAVING - RIRD
  • BARODA TAX SAVING - MIP
  • BARODA TAX SAVING - QIP
Product Nature

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.

TD131 Tax saving RIRD
TD132 Tax saving MIP: under this scheme, interest on deposit is paid on a monthly basis.
TD133 Tax saving QIP: under this scheme, interest on deposit is paid on a quarterly basis.
Eligibility/ Target Group

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 & Maximum Amount Of Deposit

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.
Period Of Deposit

The term deposit should be for a period not less than 5 years. However, maximum tenure of the deposit will not exceed 10 years.
Types Of Accounts
  • 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.
Rate Of Interest

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 Payment & Tax Liability
  • 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.
Nomination Facility Nomination facility will be available.
Tax Deduction At Source Interest payment is subject to Tax Deducted at source (TDS) as per prevailing Income Tax ACT.
Availability Of Loan/ Overdraft No loan and/ or any type of credit facility can be considered against the security of the deposit. The deposit cannot be taken as collateral security also.
Other Terms And Conditions
  • 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.
Auto Renewal On maturity the deposit will be renewed for a period of -12- months under regular FDR scheme.
Premature Payment Premature payment is not allowed. However, in case of death prepayment is allowed as per the Banks usual norms and procedures.
Other Salient Features:
  • 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.

bob Tax Saving Fixed Deposit Account : Most Important Terms and Conditions (MITC)

  • Rate of Interest to Senior Citizen: An additional interest to Resident Senior Citizens as per Bank's guidelines is payable for deposits below Rs. 3.00 Crores only. Senior Citizen rate is not applicable to NRE/NRO/Capital Gain/FCNR. For latest rates, please visit
  • Tax Deduction at Source:TDS will be deducted as per income tax rules. No TDS will be deducted if a person submits form 15G/15H as applicable.
  • TDS Certificate:TDS certificate will be provided to all customers.
  • Advance against Callable Deposits: This facility is not available to a minor account in single name and HUF. If the interest is not deposited for more than 2 quarters, term deposit will be apportioned immediately.
  • Advance against (Except Non-Callable Deposits): Loan / Overdraft / Advance facility is not available against the security of Non-Callable Deposits as per Bank’s guidelines.
  • Interest certificate available at request of customer
  • Deposit certificate- Term Deposit Receipt is provided
  • Term deposits can be transferred from one branch to another branch at the request of the customer.
  • Mode of Payment:Maturity proceeds are credited to the SB/ CA account of the customer. In cases where there are no operative accounts of the customer, maturity proceeds can be given in cash below Rs. 20,000 above which DD/pay order will be issued.
  • Minor Accounts can be opened for individuals above 10 years subject to maximum cap of Rs. 1,00,000
Interest Payment:
  • In terms of Reserve Bank of India directives, interest shall be calculated at quarterly compounding intervals on Term Deposits and paid at the rate decided by the Bank depending upon the period of deposits. In case of Monthly Deposit Scheme, the interest shall be calculated for the quarter on compounding basis and paid monthly at discounted value. The interest on Term deposits is calculated by the Bank in accordance with the formulae and conventions advised by Indian Banks' Association.

    • Accordingly Bank has adopted following methodology.

    “In all cases of Domestic Term Deposits ( period of deposit more than a year) where the terminal quarter is incomplete, interest should be calculated for complete quarter and the actual number of days, reckoning the year 365/366 days viz the calculation of interest on such deposits should be in order of completed quarters and days.”

  • For Deposits of 2 Quarters and above, interest is calculated in quarterly compounded for complete quarters and where the terminal quarter incomplete, interest is calculated proportionately for the actual no of days reckoning the year 365/366 days.
  • The Maturity Amount mentioned in the receipt is calculated without giving TDS effect. While calculating interest for half year(Quarterly compounded), the interest calculated for previous half year (quarterly compounded) minus TDS will be added to principal amount for calculating interest for current Half Year.
  • For Short Deposits of less than 2 quarters but more than 1 quarter simple interest will be paid for complete quarter and plus interest for remaining days reckoning the year 365-366 days( without compound effect).
  • For short deposits of less than one quarter interest is calculated proportionately for actual number for days reckoning the year 365-366 days.
  • The interest on FCNR deposits shall be paid at the rates calculated in accordance with the basis prescribed by the Reserve Bank of India (RBI) from time to time for various maturities. The interest on FCNR deposits shall be paid on the basis of 360 days to a year and shall be calculated at intervals of 180 days each.
  • Deduction of Income tax at source from payment of interest on time deposits (section 194A of income tax act 1961) w.e.f 1st July 1995

    • Income Tax is to be deducted in cases where the total interest paid or credited on all time deposits in the name of a depositor with Bank as a whole, whether singly or jointly (as first named person) exceeds the specified limit per financial year as under income tax act 1961, Tax is to be deducted either at the time of credit to the account or payment of interest to the depositor whichever is earlier subject to change in limits of interest eligible for tax limit from time to time.

    In case the depositor submits following Form before end of April every year, no tax may be deducted.

  • Non-corporate customers other than Senior Citizens - Form No.15G along with PAN (w.e.f. 1st April 2010).
  • Senior Citizens i.e. individuals of the age of -60- years or more - Form No.15H along with PAN (w.e.f. 1st April 2010) w.e.f. 1st April 2010 I.T. Department has made it mandatory to quote Permanent Account No. (PAN) by deductees in all cases where TDS is applicable, failure of which would attract the TDS at a higher rate of 20% (against normal rate of 10%) or normal rate whichever is higher. Further it has also been made compulsory to mention PAN on form No.15G / 15H w.e.f. 1st April 2010.
  • The Bank will issue a system generated tax deduction certificate (TDS Certificate) for the amount of tax deducted on quarterly basis.
  • Interest earned/accrued on NRE & FCNR Term Deposits is tax free in India under the relevant provisions of Income Tax Act in India and hence no tax at source is deductible in respect of these deposits. “In case of NRO deposits” The depositor can claim the benefit of reduced rates of tax under Double Tax Avoidance Agreement (DTAA), which India has with the governments of various countries, by submitting the documents prescribed by the Bank at the beginning of every financial year.

    • However, Bank has statutory obligation to deduct tax at source on any interest paid / payable on NRO Term Deposits at the specified rates. If PAN is submitted with a declaration applicable under Double Tax Avoidance Treaty - TDS is deducted @ applicable rate for the country of residence of the customer.

  • If PAN is submitted without declaration - TDS is deducted @30%
  • If declaration is submitted without PAN - TDS @normal rate or 20% whichever is higher.
  • If PAN and declaration is not submitted - TDS @30%
  • All interest payments will be rounded off to the nearest rupee.
  • The Term Deposit account holders at the time of placing their deposits can give instructions with regard to closure of Deposit account or renewal of deposit for further period on the date of maturity. In absence of such mandate, the Bank will automatically renew the deposit as under.
  • If Deposit is placed for more than one year it will be automatically renewed for one year at the prevailing rate on due date.
  • If Deposit is placed for less than one year it will be automatically renewed for same period at the prevailing rate on due date.

    • In case, the customer wishes to make changes in the tenure or wants premature proceeds of the Term deposit, the same is allowed at the written request of the customer. In case of deposits under callable scheme premature withdrawal of bulk deposit is done as per Bank’s discretion.

Bulk Deposits (Rs. 3.00 Crores & above)
  • “Bulk Deposit” means a single Rupee Term Deposits of Rs. 3.00 Crore and above (RBI/2024-25/40 DoR.SPE.REC.No.24/13.03.00/2024-2025 dated 07.06.2024).
  • In case multiple deposits are created on same day aggregating Rs. 3.00 Crores and more, but the same mature on different dates, then it will not tantamount to splitting of Bulk Deposit. Also multiple deposits created on same day aggregating Rs. 3.00 Crores and more with same maturity period but for different specific purposes will not tantamount to splitting of Bulk Deposit, provided the customer submits supportive documents for the same.

Need Assistance?

Frequently Asked Questions (FAQs)

  • What is a Tax-Saving FD?

    The product is aimed at clients who want to invest money in the form of a term deposit for a minimum of five years in order to qualify for an income tax rebate under Section 80C.
    Tax saving RIRD
    Baroda Tax Saving MIP: Under this scheme, interest on deposit is paid on a monthly basis.
    Baroda Tax Saving QIP: Under this scheme, interest on deposit is paid on a quarterly basis.
    The bank provides RIRD, MIP, and QIP, three types of tax-saving term deposits for periods of five years or longer. The products come with an income tax rebate under Section 80C.

  • Is tax saver FD a good investment?

    It is a good investment that offers tax benefits with a deduction of up to Rs 1.5 lakhs with a minimum lock period of five years under Section 80C.

  • Can we break the tax-saving FD?

    Tax-saving FDs come with a minimum lockdown period. Premature withdrawals before the date of maturity are not allowed for this kind of tax-saving term deposit. However, in the case of death, prepayment is allowed as per the bank's usual norms and procedures.

  • How much of FD is tax free?

    For availing tax benefits, the minimum deposit should be Rs 100. Deposits thereafter should be in the multiples of Rs 100. The deposit amount should not be higher than Rs. 1,50,000 for availing tax benefits in a financial year.

  • Who should invest in a tax-saving FD?

    All individuals and HUF are eligible to invest in the product. It is most suitable for income taxpayers like salaried people, higher and middle-income groups, retired people, etc. Firms, companies, trusts, societies, clubs, institutions, corporates, etc. are not allowed to invest in the product.

  • How can I open a tax-saving FD?

    You can open a tax-saving FD with any bank. The minimum deposit is Rs 100, and the maximum investment is Rs 1.5 lakh in a year. The account can be opened online or in person.

  • Can I have multiple tax-saving FDs?

    Yes, you can open multiple tax-saving FDs under Section 80C of the Income Tax Act. These FDs will enable claims with a maximum deduction of Rs. 1.5 lakhs annually. The minimum term deposit is 5 years or above. So, multiple tax-saving deposits of 5 years or more can be opened by an individual.

  • Is a 5-year FD tax free for 5 years?

    The 5-year locked tax-free FD offers a tax deduction on investments deposited for up to a tax-saving FD investment limit. The minimum deposit amount in a tax-saving FD is Rs.100 and thereafter in multiples of Rs. 100. This term deposit has a minimum cap of 5 years and must not exceed 10 years. The term deposit can be opened as a single or joint holding.

  • What should be done if the account holder is not alive at the time of maturity?

    In case the account holder is not alive at the time of maturity, prepayment is allowed as per the bank's usual norms and procedures.

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