Bank of Maharashtra FD Interest Rate

Monthly Interest Deposit Scheme

• This scheme offers the convenience of getting monthly income.
• Monthly interest is calculated at a discounted value.
• The minimum investment for this deposit scheme is ₹1,000 and in multiples of ₹100 thereof. 
• Period of deposit would range from a minimum period of 1 year to a maximum of 10 years.
• This deposit is suitable for individuals who require a steady stream of cash flows, especially senior citizens.
• The scheme offers a loan facility up to 90% of the deposit amount.
• A nomination facility is also available for this scheme.

Quarterly Interest Deposit Scheme

• This scheme is ideal to plan tax liabilities or investment depending upon the quarterly interest paid on deposit.
• The minimum investment for this deposit is ₹1,000 and then in multiples of ₹100.
• The deposit can be made for a minimum period of 1 year up to 10 years.
• The scheme offers a loan facility of up to 90% of the deposit amount.
• Interest will be deposited quarterly as per instructions of the depositor to their savings account, current account or any other account.

Tax Saving Term Deposit

• Investors cannot withdraw their deposits before 5 years in this scheme, but can avail income tax deduction under section 80C of the Income Tax Act of 1961 up to ₹1.5 lakhs in a given financial year.
• A minimum of ₹100 can be deposited and or in multiple thereof with a maximum of ₹1.5 lakhs in a year.
• Depositors cannot avail loans against this scheme.
• Premature withdrawal is not allowed, but in case of the death of the holder of a term deposit, the nominee can encash the deposit before or after maturity.
• FD can be transferred from one Bank of Maharashtra branch to another.
• Joint holders are allowed, but only the first holder can avail the tax benefits.

Pros:

• One can make investments of very small amounts hence promoting savings.
• One can save tax by investing into tax saving fixed deposits.
• Using the online application of the Bank of Maharashtra, one can easily deposit in a fixed deposit account by opening an account with the bank.
• Senior citizens are offered additional interest rates which are 0.5% more than that for regular citizens only for all maturity slabs of 91 days and above for deposits up to ₹2 crore only. The additional rate is not applicable to any type of non-resident deposit.
• The amount invested with the bank is covered by DICGC insurance for the total sum of ₹5 lakhs.
• Nomination and auto-renewal facilities are available.
• Bank of Maharashtra offers loans against fixed deposits up to 90% of the deposit amount. The loan's interest rate will be determined by the bank's rules and regulations.

Cons:

• 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, no benefit can be availed for higher returns in cases of an increase in market interest rates. 

• Any person in his individual capacity  
• more than one person in their joint names, 
• any minor jointly with a major 
• Sole Proprietary concern
• Members of charitable trusts
• Educational institutions
• HUF
• Clubs
• Private Traders 
• Merchants
• Agents
• Professionals 
• Partnerships Firms
• Societies & Corporates

Are eligible to open their fixed deposit accounts with Bank of Maharashtra.

Bank of Maharashtra requires the below-listed documents for completing the mandatory Know Your Customer (KYC) procedure before opening an account for its customer

• Documents required for proof of Identity:  

PAN Card, Driving License, Passport, Voter’s ID, Aadhar Card, Identity card issued by reputed companies, Letter from recognized public authority verifying the identity and address of the customer to the satisfaction of bank

• Documents required for Address proof:

Aadhar Card, Electricity Bill, Telephone Bill, Ration Card, Bank account statement ( not more than 3 months old), Letter from a reputed employer, Letter from any recognised public authority /local body, Income tax/wealth tax Assessment order

• Using Bank of Maharashtra Mobile Application (App):

        Step 1: Log in to the Bank of Maharashtra mobile application 

        Step 2: Select ‘Term Deposit’ and choose the type of deposit account.

        Step 3: Select the FD tenure and insert the deposit amount. After filling out the form one can submit the details and create an FD.

• Using Bank of Maharashtra’s Internet banking website:

        Step 1: Log in to the Bank of Maharashtra Internet Banking website 

        Step 2: Navigate to the “Personal” tab. 

        Step 3: From the menu, select “Term Deposits”. FD page will display on the screen. 

        Step 4: Click on ‘Apply Now’. This will generate an online form in which you will be required to select the FD tenure and insert the deposit amount. 

        Step 5: After filling out the form one can submit the details and create an FD.

        Step 6: The account will be opened within 24 hours of application and a confirmation message will be sent to the customer's registered mobile number. 

• Offline by visiting the nearest Branch:

        Step 1: Visit the nearest Bank of Maharashtra branch

        Step 2: Obtain and fill up the form to create a fixed deposit indicating the period, amount and other preferences

        Step 3: Submit the form along with a copy of your Aadhar and PAN card; the bank officials would process the form and create an FD.

• In case of premature withdrawal the investor can only earn interest for the period for which the deposit is held with the bank. 
• No penalty on the applicable interest rate for premature withdrawal of term deposits up to 1 year. Deposits with maturity over 1 year will incur a 1% reduction in the applicable rate for premature withdrawal.

As per 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 case of joint holders, only the first holder can get tax benefits. 

At the time of 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 on 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 then the deduction will be at 10% per year on the interest. Without a PAN card, the bank will deduct 20% TDS per year.