Bank of Baroda Tax Saving Fixed Deposit

Balancing your investment returns and tax implications is a tedious process. Tax-saving FDs offered by banks are strategic financial tools that help you to manage your returns and claim deductions under section 80 C of the Income Tax Act. 
 

Tax-saving Fixed Deposits (FDs) have always stood out as a robust and reliable instrument in this context. Bank of Baroda, a major banking institution in India, offers such tax-saving FDs that have gained popularity among investors.

The features of Tax Saving FD offered by the Bank of Baroda are mentioned below:

• This FD is for those investors who want to earn and save tax.
• This allows saving tax by getting a deduction under section 80C of the Income-tax Act,1961.
• Firms, Companies, clubs, institutions, etc., cannot invest in this scheme.
• The minimum investment amount is ₹100, and then in multiples of 100, the amount shall not exceed ₹1,50,000 in a year to save the tax.
• The minimum tenure is 5 years, and the maximum is 10 years.
• It can be opened jointly, but in that case, the first holder will benefit from income tax relief.
• The interest payout can be monthly as well as quarterly.
• A nomination facility is available.
• The FD amount can not be pledged as collateral.
• A premature payment facility is not available.

• Both individuals and Hindu Undivided Families (HUFs) are qualified to invest in these tax-saving FD schemes.
• One can opt for fixed deposits in either public or private sector banks for tax savings. However, cooperative and rural banks don't qualify.
• A 5-year term deposit in a post office is also recognised as a tax-saving instrument.
• Deposits can be made individually or as a joint account. However, only the first account holder is entitled to the associated tax advantages.

The documents required are as follows:

• Identity Proof and
• Address Proofs

These are the staples for opening any FD account, including a Tax Saving FD.