Fincare Small Finance Bank Tax Saving Fixed Deposit

Saving and investing wisely helps achieve financial goals and plays a crucial role in reducing tax liabilities. With the myriad of investment options available today, choosing the one that aligns well with your financial targets and tax-saving objectives is essential. One such attractive investment avenue is the tax-saving Fixed Deposit (FD) offered by Fincare Small Finance Bank.

Tax-saving FDs distinguish themselves from regular FDs primarily through their tenure and the tax benefits they extend to the investors. Fincare Small Finance Bank offers investors a lucrative opportunity to enjoy tax benefits while securing investments in a safe and stable medium.

• The interest earned on all types of FDs is included in the total income and is taxable per the prevailing slab rate.
• As per section 80C of the Income-tax Act 1961, the investor gets an exemption of ₹1,50,000 in tax saver FD investment.
• For a senior citizen (Aged above 60 years), a deduction of up to ₹50,000 is available; for non-senior citizens, up to ₹40,000.
• If the PAN is not provided, then, in that case, 20% TDS is levied.
• If your total income is below the taxable limit, i.e., Rs. 2.5 lakhs, you can avoid TDS by submitting Form 15G to the bank.
• For senior citizens, if your total income is below the taxable limit, you can avoid TDS by submitting Form 15H to the bank.

In-Depth Features of Tax-Saving FDs

Duration: Tax Saving FDs usually have a 5-year lock-in period, prohibiting any premature withdrawals.

Interest Offerings: Fincare Small Finance Bank offers competitive interest rates, with additional benefits for senior citizens.

Borrowing against FD: These FDs typically can't be used as loan collateral due to their fixed tenure.

Interest Disbursement: Investors can choose from different payout options, such as monthly, quarterly, or annual intervals. There's also the option of reinvesting the earned interest.

Renewal Policy: Unless communicated otherwise, these FDs are automatically renewed upon maturity for the same period at the prevailing interest rate.

Early Withdrawal Charges: Withdrawals aren't permissible before the end of the lock-in period. However, post-lock-in, penalties may apply if one opts to withdraw before maturity.

Investment Limits: There's a minimum deposit requirement to start a tax-saving FD, but the upper cap is usually at INR 1.5 lakh annually, aligning with the 80C guidelines.

Tax Deduction at Source (TDS): TDS might be applicable if the interest income exceeds a certain threshold.

• Resident Individuals: Any individual residing in India can open a Tax-saving FD with Fincare Small Finance Bank.
• Hindu Undivided Families (HUF): The Karta of the HUF can open a Tax-saving FD on behalf of the family.
• Minors: Minors are allowed to open an FD through a guardian.
• Single or Joint Accounts: Both types of accounts can be opened. However, the tax benefit under section 80C typically applies only to the first account holder for joint accounts.
• Existing Fincare Bank Customers: Existing customers can easily open a Tax-saving FD online since their KYC details are already with the bank. New customers might need to undergo the complete KYC procedure.
• Amount: The minimum amount required for investment starts from a nominal sum, e.g., ₹100, but can go up to ₹1.5 lakhs annually for availing the 80C benefit.

For those who aren't existing customers:

For Identity Proof and Signature Proof

• PAN Card
• Driving License
• Passport
• Voter’s ID
• Aadhar Card

For Address proof

• PAN Card
• Driving License
• Passport
• Voter’s ID
• Aadhar Card
• Utility Bill
• Bank account Passbook (Updated and not more than 3 months old)