Union Bank of India Tax Saving Fixed Deposit

While investing, we want to earn the maximum returns and save taxes. Tax liability is a significant responsibility of the citizens of a country, but the government offers a few relaxations on taxes via various deductions and exemptions. The Union Bank of India offers different Tax saving FD options. Read below to know more about it.

Here are some of the critical features of the Union Tax Saver FD Scheme:

1. The goal is to offer better returns as well as save taxes
2. Have a lock-in period of 5 years.
3. Investors can avail of income tax deductions under section 80C up to 1.5 lakhs in a year.
4. Loans can be availed against this scheme after 5 years of the lock-in period.
5. Different payout options are available, such as monthly, quarterly, or annual intervals.
6. You cannot prematurely withdraw these FDs before the lock-in period. If you withdraw after the minimum lock-in of 5 years but before FD maturity, you’ll have to pay a penalty.

Potential account holders need to submit the following documents:

1. Aadhaar Card
2. PAN Card 
3. Passport size photographs
4. Proof of age (for senior citizens)