Tax Saver Fixed Deposit

• Individuals, either singly or jointly with other individuals including minors represented by guardians and HUF assesse are eligible to open Tax Saving Fixed Deposit account. Joint holder** type of deposits may be issued jointly to two adults or jointly to an adult and a minor, and payable to either of the holders or to the survivor.
• A Tax Saver Fixed Deposit can be opened only for 5 years (no premature closure allowed).
• The minimum amount is Rs. 20,000 and the maximum amount is Rs. 1.5 lakh in a financial year. The deposit is accepted in multiples of Rs. 1,000 only.
• Nomination facility is available under the scheme as per the rules applicable from time to time. No nomination shall be made in respect of a fixed deposit applied for and held by or on behalf of a minor.
• Loans shall not be granted against the tax saving fixed deposit and deposit shall not be accepted as collateral security for any other facilities also.
• Tax shall be deducted at source on the amount of interest paid / credited in the account as per the guidelines issued under the Income Tax Act from time to time.

Interest Rate per annum (%).

Cumulative yield is calculated till the end of the tenure.

In case of deposits where interest is paid out at maturity (cumulative interest bearing deposits), interest is calculated and compounded every quarter, basis account opening date. This interest amount so calculated is added to the principal amount in your term deposit account at the end of every calendar quarter.

*Under section 80 C of IT act 1961.
**In the case of joint deposits, the deduction from income under section 80C shall be available only to the first holder of the deposit.
^#Applicable only for Retail Deposits - Resident Indian Senior Citizens i.e. Resident Individuals of age 60 years & above and excludes Non-Resident individuals, Individuals in their capacity as a Karta in HUFs and all non individuals. Incase of joint accounts the first holder should be a senior citizen to avail of these rates.