Tax Saving Fixed Deposit is one of the most attractive, secured, long term investment options available in India.
Features of Tax Saving Fixed Deposit are:
- Income Tax exemption under Section 80C
- Interest Rate from 5-5% to 7.75%
- Lock in Period for 5 years
- Secured investment option
- Loan against FDR is available
- More interest earning than Savings Bank Account.
- Tenure of Investment is flexible
- Rs. 1,50,000 deduction from income under section 80C of Income tax Act
- Loan can be availed against FDR in case of urgent need
- Interest on loan is lesser in comparison with other loan options
- Amount invested up to Rs. 1,50,000/- can be deducted from income u/s 80C
- Interest earned on FDR is taxable
- TDS is applicable to interest on FDR
Anyone who can kept the money for 5 years lock in period.
You can open the FDR account with any bank. You will have to inform them
that you want to open FDR with tax saving option.
What is Risk on Tax Saving FDR
There is no risk in Tax saving FDR. You will get the amount invested with interest on Maturity.
Minimum Investment is Rs. 100 and maximum is Rs. 1500000/-
There is lock in period for 5 years. You can avail loan against FDR in case of any urgent need.
Tax Saving FDR for Senior Citizens
Tax saving FD option is available for senior citizens also. The interest rate for senior citizen is slightly higher than others.
You can transfer Tax Saving FDR from one bank to another.
Nomination facility is available for Tax Saving FDR
Documents needed to open Tax Saving FD Account
- Passport, PAN card, Voter ID card, Driving license, Government ID, Sr citizen ID card
- Passport, Telephone bill, Electricity bill, Bank Statement with Cheque etc
Disclaimer: Information given here is to guide and help those who want to know about investing in Tax Saving Fixed Deposit. We are not responsible for any mistake or error. This is a website to provide free information and we do not charge any amount from any user. Trade marks and copy rights are of respective website owners.
Register for National Pension Scheme online
National Savings Certificate (NSC)
Tax saving Fixed Deposit (FDR)