Fixed deposit is a type of deposit where an investment is made for a specific time period. Tax-saving fixed deposit is one where investment amount can get deduction under Section 80C of the Indian Income Tax Act. These deposits can be individual as well as joint. The tenure of these deposits is generally five years. A maximum deduction of Rs 1.5 lakh can be claimed by someone who invested in a tax saving fixed deposit FDs can be termed as financial tools that offer higher rate of interest than saving accounts. They are considered to be one of the most secure investment and tax saving options available. Almost all banks offer fixed deposits, so before investing, it is important to weigh the pros and cons.
The wealth growing option of tax-saving fixed deposit in AU Bank is available with a minimum deposit of Rs 1000/- to a maximum amount of Rs 1.5 lakh annually. AU Bank’s tax saving fixed deposit service offers great returns with tax saving. The regular tax saving option is available for individuals, HUFs and minors. The tax benefit will be availed by the primary holder, in case of joint deposits.
Fixed deposits are one of the safest investment options which also offer tax saving benefit. The service can be used without any high maintenance charges and the facility of nominations is also provided.