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AU 5-Year Tax Saving Fixed Deposit

Invest in a Fixed Deposit and Save Tax

Top Features of 5-year Tax Saving Fixed Deposit

5-year Tax Saving Fixed Deposit (FD)

    Finding a tax saving investment that provides good returns and also offers capital protection is like a dream come true. Why just save money when you can also save on taxes and earn high interest on your investment?

    We strongly believe in providing financial solutions that fit your needs perfectly. Our Five-Year Tax Saving Fixed Deposit is a wise investment that is tailor-made for you. With the minimum term deposit of INR 1,000, you can start saving on tax while earning good returns. Here’s everything you need to know about it.

Features of the Five-Year Tax Saving Fixed Deposits

  • High interest rates: Earn higher interest rates with our Five-Year Tax Saving Fixed Deposit.
  • Tax saving: Get an exemption of up to INR 1,50,000 under section 80C of the Income Tax Act.
  • Guaranteed returns: Get guaranteed returns on investment after the lock-in period of five years.
  • Investment Amount: You can invest a maximum of INR 1,50,000 in a financial year.
  • Ideal for senior citizens: Earn up to 0.50% p.a. higher interest rate and plan for your retirement effectively.
 

Benefits of Five-Year Tax Saving Fixed Deposits

  • Minimum amount to start: Start your tax-saving account with as little as INR 1,000.
  • Tax saving: Save taxes while you see your investment grow.
For more information on general terms & conditions of Fixed Deposits, kindly click here
 

Eligibility criteria

  • Applicants who are residential individuals including senior citizens
  • Hindu undivided families are eligible.
 

How to apply for Five-Year Tax Saving Fixed Deposits?

  • Video BankingYou can now start a Fixed Deposit through our Video Banking services by clicking here. All you need is your PAN card and Aadhaar card.
  • AU 0101 App / NetBanking: As an existing customer, you can apply for a Tax Saving Fixed Deposit by visiting your nearest branch or apply through AU 0101 App / NetBanking.
  • Branch visit or customer care: You can also visit your nearest branch if you are a new customer or call customer care at 1800-1200-1200 for more details.
 

FAQs

 

Q1. What is a Five-Year Tax Saving FD?

A Five-Year Tax Saving Fixed Deposit is a scheme where you can invest as low as INR 1,000 for a lock-in period of five years and be eligible for exemption of taxes under Section 80C of the Income Tax Act.

Q2. Is Five-Year FD tax-free?

The Five-year Tax Saving FD is exempted from tax other than the tax computation up to an amount of INR 1.5 lakhs per annum. The interest earned on the deposit is, however, taxable.

Q3. What are the interest rates on Five-Year Tax Saving Fixed Deposits?

You can earn attractive interest on a tax saving Fixed Deposit. For more information on interest rates, click here.

Q4. Can I break a Five-Year Tax Saving FD?

No, you cannot break a tax saver FD during the tenure of the deposit.

Q5. How much amount of the FD interest tax-free?

You will have to pay 10% tax due to TDS as per the applicable tax bracket on the interest. Other than that, the interest and the principal amount are exempted from tax.

Q6. How does a Five-year Tax Saving Fixed Deposit work?

With the Five-Year Tax Saving FD, you can deposit a minimum of INR 1,000. This amount will be kept as a Fixed Deposit for a lock-in period of five years, whereby you will be exempted from paying tax for this amount. After the five-year period, you will be able to withdraw the money from the bank. 

Q7. Is the Five-year Tax Saving Fixed Deposit a good investment?

Yes, not only does the Five-Year Tax Saving FD help you save on taxes, but it also provides high interest rates. Therefore, it helps you accumulate savings and also provides guaranteed returns while saving on tax.

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