MoneyTap Loan

No risk of sinking money, no tax! Invest your earnings in this great scheme for 5 years, get steep interest!

In the new financial year, new savings will be planned from your earnings. But, if you are confused about where to invest money and where not, then this is the right time for you. If you want good returns and government guarantees, as well as income tax exemption, a plan is perfect for you. Fixed Deposit is a great option. If you plan and invest properly, you will get double benefit of tax exemption along with good returns. Invest your 5 years earnings in this awesome scheme, then watch the wonder of interest. The interest you were not getting till now, you are getting now in tax saving FD scheme. So let’s see why this is a great plan.

Why is a tax saving FD scheme a good investment?

Tax saving means tax saving in the name of FD. That means exemption from income tax. You can save tax on your earnings. In fact, the returns received during the lock-in period of 5 years will be tax free. However, only interest up to Rs 40,000 in a year is tax free. As per the Income Tax Act 1961, tax exemption will be available under Section 80C. In every financial year Rs. Investment upto 1,50,000 will be completely tax free. There is no risk in it as there is a government guarantee on fixed deposits. Fixed deposits can be made in any government or private bank. Tax saving FD can also be done at the post office.

How much interest is paid on FD in which bank?

Bank of Baroda: 6.5%%
SBI: 6.50%
PNB: 6.50%
Canara Bank: 6.70%
Union Bank: 6.70%
Indian Overseas Bank: 6.50%
Post Office TD: 7.50%
HDFC Bank: 7.00%
ICICI Bank: 7.00%
Axis Bank: 7.00%
IndusInd Bank: 7.25%
Kotak Bank: 6.20%
Yes Bank: 7.00%
DCB Bank: 7.60%
RBL Bank: 7.00%
IDFC Bank: 7.00%

Lock in 60 months in tax saving FD

Tax saving FD scheme is for 5 years. Your money stays locked for 60 months. There is no concession for withdrawal before 5 years i.e. before maturity. In case of death of the FD holder, the nominee is allowed to withdraw the money before maturity.

TDS is applicable on excess interest.

There is no tax on tax saving FDs. But, if the interest earned on the invested money in a year is Rs. If it exceeds 40,000, tax has to be paid. In case of senior citizens, the exemption limit is up to Rs 50,000. On maturity, the bank will pay the balance after TDS.

What are the benefits of tax saving FD?

  • Tax exemption under Section 80C of Income Tax
  • In a year Rs. Rebate on investment upto 1.50 lakhs
  • Interest rate is fixed for 5 years, there is no risk involved
    Nominee facility
  • 0.50% more interest to senior citizens
  • No facility to break FD before maturity and auto-renewal

These documents are required to invest in tax saving FD

  • ID Proof (Aadhaar Card, PAN, Driving License, Passport)
  • Proof of Address (Aadhaar Card, Utility Bill, Ration Card, Voter ID Card, Driving License, Passport)
  • Signature proof (passport or driving license)
  • 2 passport size photographs

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