Saraswat Bank FD Interest Rate

Fixed Deposits (FDs) are a secure way of investing wherein you can deposit your money for a fixed tenure at a predetermined fixed rate of interest which is usually higher than a savings bank account. Let's discuss the types of FDs offered by Saraswat Bank:

Fixed Regular

Under this scheme, a short-term investment is made for a tenure ranging from 7 Days to 364 Days, on which simple interest is paid on the maturity day. The minimum deposit amount is ₹1,000. A loan or overdraft facility is available with this deposit. You can also prematurely withdraw this FD subject to applicable terms and conditions. A nomination facility is also available.

Fixed Monthly Scheme

This scheme facilitates the monthly payout of the interest earned, and the interest is calculated on a simple interest basis. The tenure of this deposit starts from 1 year and goes up to 10 years. The minimum deposit amount is ₹1,000. A loan or overdraft facility is available with this deposit. You can also prematurely withdraw this FD subject to applicable terms and conditions. A nomination facility is also available.

Fixed Quarterly Scheme

This scheme provides simple interest and facilitates the quarterly payout of the interest earned. The tenure of this deposit starts from 1 year and goes up to 10 years. The minimum deposit amount is ₹1,000. A loan or overdraft facility is available with this deposit. You can also prematurely withdraw this FD subject to applicable terms and conditions. A nomination facility is also available.

Kalpataru Deposit Scheme

Under this scheme, the investment interest is reinvested quarterly and repaid along with the principal amount on maturity. The period under this scheme is from 1 year to 3 years. The minimum deposit amount is ₹1,000. A loan or overdraft facility is available with this deposit. You can also prematurely withdraw this FD subject to applicable terms and conditions. A nomination facility is also available.

Madhukar Tax Saving Deposits

Under this scheme, investors can not withdraw their deposits before 5 years but can avail of tax deductions of up to ₹1.5 lakhs under section 80C of the Income Tax Act of 1961. This scheme accepts a minimum deposit of ₹5,000 with an upper threshold limit of ₹1.5 lakhs in a year. However, loans against this scheme are not allowed. No premature withdrawal facility is available under this scheme. A nomination facility is available.

• One can save tax by investing in Madhukar Tax Saving Deposits.
• Using the online application of Saraswat Bank, one can easily invest in a fixed deposit by opening an account with the bank.
• Senior citizens get additional interest rates higher than regular citizens.
• Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance cover the amount invested with the Bank for the total sum of ₹5 lakhs.
• A nomination facility is available.
• Investors can avail loans on FDs up to 90% of the principal amount and accrued interest. You cannot avail of the same on the Madhukar Tax Saving Deposit scheme. 
• The minimum amount of FD is ₹1,000

• 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.

The following are eligible to open a fixed deposit with Saraswat Bank:

• Any person, in an individual capacity,  
• more than one person in their joint names, 
• any minor jointly with a guardian,
• Societies & corporates,
• Organisations.

The following are the documents required for opening an FD account: 

• PAN card
• Aadhar Card
• Voter ID Card
• Ration Card
• Two passport-size photographs.

If you already hold a savings or current account with Saraswat Bank, a Fixed Deposit can be opened using the below procedure:

Using the Saraswat internet banking website

To open a fixed deposit account in Saraswat Bank via internet banking, follow these steps:

Step 1: Log in to your account with your User ID and password.

Step 2: Go to General Services, then Service Request, and click New Request.

Step 3: Select Deposits, then Open a Term Deposit Option.

Step 4: Enter the amount you wish to deposit and select the tenure. You can view the interest rate by clicking on the link provided.

Step 5: Choose the account you want to fund your new FD account. You will only see the accounts where you are the primary account holder.

Step 6: Select your preferred option for interest payment and principal maturity.

Step 7: The FD will be opened in the same branch as your selected savings or current account.

Step 8: You must provide self-certification for FATCA for any new account you create. This means that you should select 'Y' for FATCA confirmation. If you select 'N', you cannot create the FD.

Step 9: Once you have filled in all the necessary details, click on Submit Online to place your request.

Step 10: You will receive a confirmation message on your registered mobile number.

Offline by visiting the nearest Branch:

Step 1: Visit the nearest Saraswat bank 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 and a copy of your Aadhar and PAN card; the bank officials will process the form and create an FD.

• The bank may permit the withdrawal of a term deposit before the agreed period upon request by the depositor. 
• The bank will inform depositors of the penal interest rates for premature withdrawal, informing them of the applicable rate and deposit rate. 
• Penal charges will be based on the contract interest rate for the period the deposit remained with the bank. This applies to the deposit tenure agreed upon at the time of placement.

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. 

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.