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.
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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