Nainital Bank FD Interest Rate
Nainital Bank Fixed Deposit Interest Rates
Note: All interest rates are updated as of 30 Jan 2024| Tenure | For General Citizen (p.a) | For Senior Citizen (p.a) |
|---|---|---|
| 7 days to 14 days | 3.25 % | 3.75 % |
| 15 days to 30 days | 3.25 % | 3.75 % |
| 31 days to 45 days | 3.25 % | 3.75 % |
| 46 days to 90 days | 4.25 % | 4.75 % |
| 91 days to 179 days | 4.25 % | 4.75 % |
| 180 days and above but less than 270 days | 4.95 % | 5.45 % |
| 270 days and above but less than 1 year | 5.75 % | 6.25 % |
| 1 year and above but less than or equal to 18 months | 6.7 % | 7.2 % |
| Above 18 months but less than or equal to 2 years | 6.25 % | 6.75 % |
| Above 2 years but less than or equal to 3 years | 6.25 % | 6.75 % |
| Above 3 years but less than or equal to 5 years | 5.75 % | 6.25 % |
| Above 5 years but less than or equal to upto 10 years | 5.35 % | 5.85 % |
| Naini Plus 2023 Deposit Scheme (Callable) -400 days | 7.05 % | 7.55 % |
 Naini Plus 2023 Deposit Scheme Deposit (Non-Callable) – 400 days | 7.1 % | 7.6 % |
| Naini Tax Saver Scheme* | 5.75 % | 6.25 % |
About Nainital Bank
Established in 1992, Nainital Bank is a wholly-owned subsidiary of the Bank of Baroda. It is a scheduled commercial bank with branches in Uttarakhand, Delhi, Rajasthan, Haryana and Uttar Pradesh. The mission of this bank is to emerge as a customer-centric National Bank & become the most preferred bank for its product, services, technology, efficiency & financials.
Types of Nainital Bank Fixed Deposits
Nainital Bank Regular Fixed Deposit Account
This is the standard term deposit offered by Nainital Bank. You can avail interest income for this scheme quarterly.
- Minimum investment: ₹1,000
- Maximum investment: No upper limit
- Scheme tenure: 1 year to 10 years
- Interest will be paid/accrued quarterly
- Repayment of term deposits before maturity is permissible.
- Nomination facility is available
- Senior citizens are offered additional interest of 0.5% for deposits less than ₹1 crore.
Naini Short-Term Deposit Plan
The Naini Short-Term Deposit Plan is an excellent choice if you want to keep your money invested for small durations.
- Minimum investment: ₹1,000
- Maximum investment: No upper limit
- Scheme tenure: 7 days to 1 year
- Interest will be paid/accrued quarterly
- Repayment of term deposits before maturity is permissible.
- Nomination facilities are available
- Senior citizens are offered additional interest of 0.5% for deposits less than ₹1 crore.
Naini Reinvestment Deposit Plan
- Minimum investment: ₹1,000
- Maximum Investment: No upper limit
- Scheme Tenure: 1 year to 10 years
- Interest will be paid/accrued quarterly
- Repayment of term deposits before maturity is permissible.
- Nomination facilities are available
- Senior citizens are offered additional interest of 0.5% for deposits less than ₹1 crore.
Naini Gold Sweep In
Nainital Bank offers Naini Gold Sweep-In schemes for 90 days and 30 days for savings and current accounts, respectively. You can open it through your savings or current account.
- The sweep unit will be 90 days for saving accounts and 30 days for current accounts.
- The unit value will be ₹25,000 for the saving account and ₹1 lakh for the current account.
- Unit will be liquidated in the Last In First Out (LIFO) system.
- Nomination facilities are available.
Naini Tax Saver Scheme
If you invest in this FD, you are eligible for a tax deduction of up to ₹1.5 lakhs under Section 80C of the Income Tax Act of 1961.
- Minimum investment: ₹100 and after that in multiples of ₹100
- Maximum investment: ₹1.5 lakh per annum
- Scheme tenure: 5 years to 10 years
- Lock-in period: 5 years.
- Premature withdrawal of the deposits made under the scheme shall not be allowed before the completion of 5 years except in case of the depositor's death.
- Interest will be computed on a quarterly rest basis.
- In case of any request for prepayment of any time deposit before its due date, the Bank may do so after the completion of a minimum 5 years period, at its discretion and pay interest at 1% below the rate ruling on the date of making the deposit, for the period for which the deposit has remained with the bank.
Pros of investing in Nainital Bank Fixed Deposit
- Period: The FD with Nainital Bank ranges from 7 days to 10 years.
- Convenient: Open hassle-free FD using online banking in a few minutes
- DICGC insurance: The amount invested with the bank is covered by Deposit Insurance and Credit Guarantee Corporation (DICGC) for the total sum of ₹5 lakhs.
- Minimum amount: Fixed deposits with Nainital Bank can be opened with a minimum investment of ₹1,000
- Preference to senior citizens: Additional 0.5% p.a. for senior citizens.
- Nomination facility: Depositors can nominate beneficiaries for their investments in Nainital Bank FDs.
Cons of investing in Nainital Bank Fixed Deposit
- Not dynamic: Interest rates on FD are not dynamic. So, it fails to overcome the risk of inflation.
- Fixed rate: Fixed deposits offer a fixed rate on the investment. Hence, you cannot benefit from higher returns in cases of increased market interest rates.
Nainital Bank FD Eligibility Criteria
Here are the eligibility criteria for opening an FD account with Nainital Bank:
- Nationality: Indian
- Age: At least 18 years
- Applicant Type: Individuals (Single and Joint), Hindu Undivided Families (HUFs), Minors (under their guardian’s name), societies, clubs, associations, etc.
Documents Required for Nainital Bank FD Account
Nainital Bank has minimal documentation requirements for its term deposit schemes. They are as follows:
- Identity proof: Voter ID card, Aadhaar card, Passport, PAN card or driving licence.
- Address proof: Electricity bill, gas bill, Aadhaar card, Voter ID card or Passport.
- Recent passport-sized photographs
How to Open an FD with Nainital Bank?
You can easily open an FD with Nainital Bank via the Naini Net Banking portal:
Step 1: Visit the Naini Net Banking portal and enter your login credentials.
Step 2: Go to ‘Fixed Deposits’, check out the Nainital Bank FD rates and select a scheme.
Step 3: When the FD account opening form loads, fill in all the necessary details.
Step 4: Take note of the terms and conditions and enter the amount you wish to deposit.
You will receive a notification on your registered email and phone number. Upon successful approval, your account will be ready.
Nainital Bank Fixed Deposit Premature Withdrawal
If you prematurely withdraw from your Nainital Bank FD, a 1% penal rate is applicable on the interest. Furthermore, premature withdrawal facilities without any penalty is only available for the Naini Tax Saver Scheme in case of the depositor’s death.
Tax implications on Nainital Bank FD
According to the Income Tax Act of India of 1961, taxpayers can seek deductions under Section 80C if they invest in FDs.
In a given financial year, a taxpayer can avail tax deduction to a maximum of ₹1.5 lakhs from their gross taxable income, provided the following conditions are fulfilled:
- Taxpayers can invest in FD either through public or private sector banks.
- Individuals and HUFs can avail tax deductions by investing in tax savings FDs.
- Bank's five-year tax saving FD offers exemptions under Section 80C.
- Investors cannot get loans against these FDs.
- In the case of joint holders, only the first holder can get tax benefits.
How to claim tax benefits?
When filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs.
Tax Deducted at Source (TDS)
- TDS will be deducted from the interest accrued on the FDs if the interest is more than ₹40,000 (₹50,000 for senior citizens) in a given financial year.
- For Resident customers, if you have submitted your PAN card details, the deduction will be 10% per year on the interest. The bank will deduct 20% of TDS annually without a PAN card.
FAQs
How can I apply for FD interest TDS exemption?
You can request a TDS exemption if the interest income is not more than ₹40,000 (₹50,000 for senior citizens) for a financial year. You must submit Form 15G to your bank to facilitate this. Senior citizens seeking this benefit need to submit Form 15H.
Why should I invest in FDs when other investment avenues offer higher returns?
It is a fact that assets like mutual funds provide better returns than FDs. However, the latter provides stable interest income throughout the maturity period. Due to their premature withdrawal facilities, they serve as a reliable emergency fund.
Is the ₹5 lakhs DICGC insurance cover applicable on Nainital Bank FD?
Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover is applicable on Nainital Bank FD.
How to break FD in Nainital Bank?
To close a term deposit in Nainital Bank, you can go to the nearest Nainital Bank branch. Ask for an FD liquidation form, fill up all the details and attach the necessary KYC documents. Sign and submit it to the bank officials along with your FD certificate. You can also complete this online via the Nainital Bank internet banking portal.
When is the right time for making term deposit investments?
The right time to invest in a fixed deposit depends on the investor's financial goals, risk appetite, and prevailing interest rates. Generally, it is advisable to invest in fixed deposits when the interest rates are high and are expected to remain stable for the investment period.
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