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Even today, amidst the ups and downs of the stock market, bank fixed deposit (FD) remains the safest and most reliable investment option for crores of investors in the country. If you want to get excellent and guaranteed returns on your deposits within the next one to one and a quarter years without any risk, then the special FD scheme of the leading public sector bank ‘Bank of Maharashtra’ can prove to be very beneficial for you. According to the latest interest rates implemented by the bank, customers are being given the highest interest among all the slabs of the bank on Special FD Scheme with a special tenure of 400 days. Under this special scheme, general citizens are getting the benefit of interest at an attractive rate of 6.65 percent per annum and senior citizens are getting the benefit of 7.15 percent per annum.
Often, before investing money in any scheme, investors want to know how much total amount they will get in their hands on maturity. If an ordinary citizen invests a lump sum of ₹ 10,00,000 (Rs 10 lakh) in a 400-day special FD of Bank of Maharashtra, then on completion of the 400-day period at 6.65 percent annual interest (compounded quarterly), he will get approximately ₹ 74,970 only as interest. That means the total amount on maturity will increase to around ₹ 10,74,970. Whereas, if this investment is made in the name of a senior citizen (60 years of age or above), then the rate of 7.15 percent per annum with additional interest of 0.50 percent will be applicable. At this rate, an investment of ₹ 10 lakh will yield a net interest of around ₹ 80,790 in 400 days and on maturity a total amount of ₹ 10,80,790 will be deposited in the account.
The 400 day special scheme offers much better returns to investors compared to the regular fixed deposit rates of Bank of Maharashtra. According to the official rate chart of the bank, for general customers, interest ranging from 2.60 percent to 6.40 percent is being given on regular FD of 7 days to 10 years. For example, on a normal FD of 1 year (365 days), general citizens get 6.40 percent interest and senior citizens get 6.90 percent interest, while for tenures of more than 1 year and up to 2 years, this rate comes down to 6.15 percent and 6.65 percent respectively. Apart from this, common citizens are getting only 5.25 percent interest on FD of 2 to 3 years and only 5.00 percent on FD of 3 to 5 years or more. In such a situation, 400 days special FD is a great option to get the highest interest rates (6.65% and 7.15%) in a short time.
Apart from the 400 days special scheme, Bank of Maharashtra is also running ‘1777 Days Green Deposit’ scheme for the customers, on which 6.05 percent annual interest is being given to general citizens and 6.55 percent to senior citizens. At the same time, taxpayers who want to avail tax exemption under Section 80C of the Income Tax Act can invest in the bank’s 5-year Tax Saver FD, on which the general category is getting 6.25 percent interest and senior citizens are getting 6.75 percent interest. In all these schemes falling in the retail deposit category of less than Rs 3 crore, investment can be started with a minimum of Rs 1,000 and if required, the facility of loan or overdraft up to 90 percent against FD is also available.
Before opening an account in this special FD of Bank of Maharashtra, it is important for investors to be aware of the rules related to tax and withdrawal. As per income tax rules, if the total interest income on FD of a normal citizen exceeds ₹40,000 (and ₹50,000 in case of senior citizens) in a financial year, TDS at the rate of 10 percent is deducted by the bank. If your PAN card is not linked to your bank account, this TDS deduction may increase to 20 percent. However, if your total annual income is less than the taxable limit, you can avoid TDS deduction by submitting Form 15G or 15H. Additionally, if you make premature withdrawal of the FD before the completion of 400 days, the prescribed penalty will be adjusted along with the interest rate applicable on the actual tenure as per the rules of the bank. Interested customers can open this FD in a few minutes at the nearest bank branch or at home through MahaMobile Plus app and internet banking.