7 Mins

Bank of Maharashtra was the first commercial bank in Maharashtra. Established in 1840 under the name Bank of Bombay, it has achieved several banking industry milestones. The Bank of Maharashtra offers various FD with different tenures. Investors can invest with an amount of INR 1,000 in their fixed deposits. In this article, we have covered Bank of Maharashtra FD and its interest rates in detail.

Bank of Maharashtra FD Rates 2021

The following table shows the Bank of Maharashtra interest rates.

Bank of Maharashtra FD rates range between 3%-4.9% for regular citizens and 3% -5.4% for senior citizens with tenure varying between 7 days and 10 years. The Bank of Maharashtra deposit rates are higher than their saving account rates. Moreover, the senior citizens FD interest rate is higher than the regular citizens’ interest rate by 0.5%.

The highest rate of interest for Bank of Maharashtra fixed deposit is 4.9% for a regular investor for 3 years 1day to10 years. For the same tenure, the highest senior citizen FD rate is 5.4%.  Returns from Bank of Maharashtra fixed deposits can be calculated using the Bank of Maharashtra FD calculator.

TenureRegular Fixed Deposit RatesSenior Citizen Fixed Deposit Rates
7 days to 45 days3.00%3.00%
46 days to 90 days3.50%3.50%
91 days to 180 days4.00%4.50%
181 days to 270 days4.25%4.75%
271 days to 364 days4.25%4.75%
1 year4.90%5.40%
1 year 1 day to 2 years4.90%5.40%
2 years 1 day to 3 years4.90%5.40%
3 years 1 day to 10 years4.90%5.40%
Note: The rate of interest of Bank of Maharashtra FDs are subject to change

Key Features of Bank of Maharashtra Fixed Deposit

The Bank of Maharashtra fixed deposit interest rate is higher than their savings account interest rate. Following are the key features of Bank of Maharashtra fixed deposits:

Tenure

The Bank of Maharashtra fixed deposit tenure ranges between 7 days to 10 years. Once invested, one cannot change the tenure of Bank of Maharashtra fixed deposit investment. However, one can opt for premature withdrawal. And investors can also close the existing Bank of Maharashtra fixed deposit and start a new FD with the desired tenure.

Minimum and Maximum Deposit Amount

One can invest with an amount of INR 1,000 in Bank of Maharashtra FDs. The minimum amount of investment for tax saving FDs is INR 100. Also, there is no limit on the maximum amount of investment on all FDs except for tax saving scheme, which is INR 1.5 lakh per annum.

Bank of Maharashtra FD rates 

Bank of Maharashtra fixed deposit interest rates range between 3% p.a to 4.9% p.a.

Preferential FD Rates

Senior citizens are eligible to get a preferential interest rate on their FDs. They also get an additional 0.5% interest rate on their FD investments. Furthermore, the Bank of Maharashtra FD rate of interest for senior citizen investors ranges between 3% – 5.4%.

Eligibility

To open an FD account with the Bank of Maharashtra, one needs to be eligible. Following are the eligible persons and entities.

  • Individual including joint depositors and minors
  • Firms
  • Corporates and clubs

Documents required

To open a Bank of Maharashtra fixed deposit account, one needs the following documents.

  • Passport size photographs
  • Bank of Maharashtra FD form
  • Proof of identity (PAN Card, Aadhar Card, Passport, Voter ID, Driving License)
  • Proof of address (Utility bills, Aadhar Card, Bank statement with cheque)

Additional Payments

It is not possible to deposit any additional amount in an existing Bank of Maharashtra fixed deposit. However, one can always invest in a fresh Bank of Maharashtra fixed deposit with an additional amount.

Tax and TDS

Investment in Bank of Maharashtra Tax Saving Fixed Deposit qualifies for tax deduction under Section 80C of the Income Tax Act, 1961. Also, all other Bank of Maharashtra FDs do not qualify for tax saving. Investors can claim tax benefits while filing their income tax returns.

The interest that one earns on their Bank of Maharashtra FD investments is taxable as per the investor’s tax slab rates. Furthermore, Bank of Maharashtra deducts a TDS of 10% (20% if PAN Card is not submitted) in case the interest income exceeds INR 40,0000 (INR 50,000 for senior citizens).

One can estimate whether their interest income is above or below the TDS threshold limit using a Bank of Maharashtra fixed deposit calculator. Furthermore, using an Income Tax Calculator, one can estimate their tax liability. Scripbox’s Income tax calculator is available online and is also free to estimate one’s tax liability.

Safety

Under the Deposit Insurance Scheme of RBI, DICGC insures all Bank of Maharashtra deposits up to INR 5,00,000.

Premature withdrawal

Bank of Maharashtra allows premature withdrawal of FD investments. Also, for premature withdrawal of deposits up to 1 year, there is no penalty. Furthermore, for all deposits above the tenure of one year, the investor will pay a penalty of 1% on the contracted interest rate.

Nomination Facility

Depositors can nominate beneficiaries for their Bank of Maharashtra FDs.

Auto-Renewal

Bank of Maharashtra offers an auto-renewal facility to depositors for their FDs.

Convenience

Opening and managing Bank of Maharashtra fixed deposit investments are easy and also convenient through their online portal.

Loan against FD and Overdraft

Bank of Maharashtra allows investors to take a loan against their FDs. This will help investors meet their liquidity requirements without breaking the FD. Also, they do not have to go through the hassle of applying for a fresh loan. Furthermore, investors can get up to 90% of the deposit amount as a loan against their Bank of Maharashtra FD.

Pan Card

A PAN card isn’t mandatory to open a Bank of Maharashtra FD account. However, there are a few implications for the same as the TDS rate will be 20% instead of 10%, as per the regulations of section 206AA. Moreover, the Bank of Maharashtra will not issue a TDS certificate. Also, exemption certificates Form 15G/15H, will be invalid.

Requirement of savings account

Individuals need not have a Bank of Maharashtra savings account to open a fixed deposit account.

Types of Fixed Deposit Schemes offered by Bank of Maharashtra

Following are the fixed deposit scheme by Bank of Maharashtra:

  • Maha Saraswati Scheme
  • Monthly Interest Deposit Scheme
  • Quarterly Interest Deposit Scheme
  • Tax Savings Term Deposit

Types of Fixed Deposit Schemes: In Detail

Maha Saraswati Scheme

Maha Saraswati Scheme is a monthly deposit scheme. Following are the features of the scheme:

  • Tenure: 36 months to 12 months
  • Minimum Deposit Amount: INR 50, and in multiples of INR 10 thereafter in Rural and Semi-Urban. INR 100 and in multiples of INR 10 thereafter in Urban and Metro.
  • Deposit Payment: The deposit amount is repayable upon maturity.
  • Premature withdrawals: Allowed, however, certain rules are applicable.
  • Eligibility:
  1. Minor or Student aged six months and above
  2. Student or Minor singly aged ten years.
  3. Minor or Student jointly with parent or guardian
  4. By parent/guardian on behalf of Minor Student
  5. (Also, In all cases, there should be KYC compliance while opening the account)

Monthly Interest Deposit Scheme

The monthly interest deposit scheme offers monthly income to its depositors. This is just like an additional income to regular earnings. Following are the features of the scheme:

  • Tenure: 12 months to 120 months
  • Minimum Deposit Amount: INR 1,000 and thereafter in multiples of INR 100
  • Loan Facility: The depositors can avail a loan up to 90% of the deposit amount.
  • Nomination Facility: Available
  • Eligibility: Individual, minor, joint depositors, corporate, firm, clubs etc. can open the Monthly Interest Deposit Scheme.

Quarterly Interest Deposit Scheme

The quarterly interest deposit scheme is suitable for planning tax liabilities or investments. The scheme pays quarterly interest on the deposit amount. Following are the features of the scheme:

  • Tenure: 12 months to 120 months
  • Minimum Deposit Amount: INR 1,000 and thereafter in multiples of INR 100
  • Loan Facility: The depositors can avail a loan up to 90% of the deposit amount.
  • Nomination Facility: Available
  • Eligibility: Individual, joint depositors, minor, corporate, firm, or clubs can open the Quarterly Interest Deposit Scheme.

Tax Savings Term Deposit

The tax savings term deposit is a scheme that offers the depositors the benefit of tax savings and investment. The deposits to this scheme qualify for tax exemption under Section 80C of the Income Tax Act. Following are the features of the scheme:

  • Lock-in period: 5 years
  • Minimum Deposit Amount: INR 100 and in multiples thereafter
  • Maximum Deposit Amount: INR 1,50,000 per financial year
  • Premature Withdrawals: Not allowed
  • Loan Facility: Not available
  • Nomination Facility: Available
  • Eligibility: Individual or HUF