Updated 04 Sep 2023
Balancing your investment returns and tax implications is a tedious process. Tax-saving FDs offered by banks are strategic financial tools that help you to manage your returns and claim deductions under section 80 C of the Income Tax Act.
Tax-saving Fixed Deposits (FDs) have always stood out as a robust and reliable instrument in this context. Bank of Baroda, a major banking institution in India, offers such tax-saving FDs that have gained popularity among investors.
The features of Tax Saving FD offered by the Bank of Baroda are mentioned below:
The documents required are as follows:
These are the staples for opening any FD account, including a Tax Saving FD.
Can I open a joint account for tax-saving FD?
Yes, you can open a joint account. However, the tax benefit applies only to the first account holder.
How is a tax-saver FD different from a regular FD?
A tax-saving FD has a lock-in period of 5 years. No premature withdrawals, overdrafts, or loan facilities are available under a tax-saving FD. Whereas one can have a regular FD for any tenure as per an individual's choice, and they are eligible for premature withdrawals.
What is the lock-in period for these FDs?
The lock-in period for tax-saving FDs is typically 5 years.
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