Here are certain features of the tax saving deposits-ġ) A tax-saving fixed account can be opened for as little as Rs 100 and as much as 1.5 lakh.Ģ) The deposit has a five-year lock-in term.ģ) The tax-saving deposit provides interest payments either monthly or quarterly.Ĥ) However, the income on the FD is taxable.ĥ) The tax-saving fixed deposit has a five-year lock-in term.Ħ) Tax-saving FDs do not permit early exit or borrowing against them.ħ) For five years, the interest rate is set.Ĩ) Joint accounts are a choice in the majority of tax-saving FD plans. Investors have the option to open a tax-saving deposit with all main lenders, including the State Bank of India (SBI), HDFC Bank, Axis Bank, and ICICI Bank.įixed deposits that help you save on taxes not only provide set returns but also do so by allowing you to take advantage of an exemption provided by section 80C of the Income Tax Act of 1961. Compared to other equity investment choices, these are viewed as less risky. One of the most reliable investment choices, granted exemption under section 80C, is the tax-saving fixed deposit (FD).
