IndusInd Bank Tax Saving Fixed Deposit

Overview FD Interest Rates FD Calculator Open FD Close FD Tax Saving FD Senior Citizen FD Rates

Updated 30 Aug 2023

Fixed Deposits (FDs) have remained a favoured choice in the vast landscape of financial tools for their stability and predictable returns. But did you know that FDs can also be an avenue for tax savings? IndusInd Bank, one of India's premier banking institutions, offers Tax-Saving FDs that combine the advantages of attractive returns and tax benefits.

These FDs are specifically designed to help you make the most of Section 80C deductions in the Income Tax Act. Dive into our blog as we unpack the features, benefits, and intricacies of Tax-Saving FDs offered by IndusInd Bank and help you make informed financial decisions.

Features of the Tax-Saving FDs of IndusInd Bank

The IndusInd Tax Saving Fixed Deposit Scheme offers deposits the opportunity to earn an attractive rate of interest on lump-sum amounts up to ₹ 1.5 lakhs while also availing tax deductions of up to Rs.1.5 lakh (including other exemptions in this category as per the Income-tax Act, 1961).
The bank offers an interest rate of 7.25% to general citizens. Whereas senior citizens can avail 0.50% additional interest on their fixed deposit as they get an interest rate of 7.75%. There is a 5-year lock-in period for this due to the tax benefits.
It has a minimum lock-in period of 5 years, meaning one cannot withdraw funds from the FD account prematurely.

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Eligibility Criteria

Resident Individuals: Both single and joint account holders can open this FD. In the case of joint accounts, the tax benefit is available only to the first account holder.
Hindu Undivided Families (HUFs): Managed by the Karta of the HUF.

Documentation Required

Identity Proof: Any one of the following - PAN Card, Passport, Voter ID, Driving License, Aadhaar Card, etc.
Address Proof: Documents like Passport, Utility bills (Electricity/Telephone/Water bills), Voter ID, Aadhaar Card, etc.
PAN Card: Mandatory for opening a Tax Saver FD due to its association with tax-saving benefits.
Recent Photographs: Usually, two passport-sized photographs are required.
FD Application Form: The bank will provide this; it must be filled and signed.
Additional documents for HUF: Declaration about the HUF status and its members.

FAQs

What is the minimum and maximum deposit amount for IndusInd Tax Saving FDs?

Typically, the minimum deposit starts from a small sum, like INR 10,000, while the maximum amount that can be claimed for tax deduction is up to INR 1,50,000 per financial year.

How long is the lock-in period for the Tax Saving FD?

The lock-in period is 5 years, so you cannot withdraw the FD before this period.

Are there special interest rates for senior citizens?

Yes, most banks, including IndusInd, offer a higher interest rate for senior citizens, usually 0.50% more than the regular rates.

Is the interest earned on the Tax Saving FD tax-free?

No, the interest earned is taxable. While the principal amount gets a deduction under Section 80C, the interest is added to your income and taxed accordingly.

Can I take a loan against my Tax Saving FD from IndusInd Bank?

No, loans cannot be availed against Tax Saving FDs due to their lock-in nature.

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