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 deduction 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 Banking: You 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 deduction of taxes under Section 80C of the Income Tax Act.
Q2. Is Five-Year FD tax-free?
Tax Saver FD are not Tax Free. However, You are eligible to claim deduction upto 1,50,000 Invested in this deposit under section 80C of Income Tax Act,1961. Note That, Interest Received on Maturity after 5 Years is taxable.
Q3. What are the interest rates on Five-Year Tax Saving Fixed Deposits?
Interest on Tax-Saver FD is same as our Regular Fixed Deposit for 5 Years (60 Months).
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?
The Interest on FD is received on Maturity and is taxable when received. However, TDS Liability as per the Norms of Income tax Act,1961 will levy on FD Interest, on which 10% of the Total Interest Earned will be deducted and rest will be paid to you.
Q6. How does a Five-year Tax Saving Fixed Deposit work?
Experience financial flexibility with the Five-Year Tax Saving FD, allowing deposits ranging from a minimum of INR 1,000 to a maximum of INR 1,50,000. This amount remains secured as a Fixed Deposit for a five-year lock-in period, providing you with a tax deduction of up to INR 1,50,000 under section 80C. 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.
