What is Indian Bank Tax Saving FD Scheme
Indian Bank's Tax Saver Scheme offers attractive rate of interest on fixed deposits combined with tax benefits under Section 80C of the Income Tax Act.
There is a lock-in period of five years with a maximum tenure of 10 years.
Senior citizens are eligible for 0.50% additional interest. You can invest up to Rs.1.5 lakh in this scheme in a given financial year.
Key features of Indian Bank Tax Saver Scheme
Here are the key features of Indian Bank Tax Saver Scheme:
- The customers should follow Know Your Customer (KYC) procedures while opening Tax Saver account.
- The lock in period of this Fixed Deposit (FD) scheme is five years.
- The minimum and maximum investment amount are Rs.100 and Rs.1,50,000 respectively.
- The Hindu Undivided Family (HUF and individuals can claim for the tax rebate.
- The customers cannot withdraw money for five years.
- It also has a nomination facility.
- The scheme does not provide any loan facility to the customers.
- It provides a fixed rate of interest.
Eligibility Criteria for Applying for Indian Bank Tax Saver Scheme
This scheme is open to Resident Individuals and Hindu Undivided Families.
Features of Indian Bank Tax Saver Scheme
Account Type | Joint/Single |
Amount | Minimum: Rs.100, and in multiples of Rs.100 thereafter. Maximum: Depositors that have registered their PAN card details can invest up to Rs.1,50,000 every financial year. |
Interest | Interest is applied quarterly. |
Period | Minimum: 5 years. Maximum: 10 years. |
Indian Bank Tax Saver Scheme interest rates
The interest rates for Indian Bank Tax Saver Scheme effective from July 2023 are given below:
Tenure | Interest Rates for General Public (p.a.) | Interest Rates for Senior Citizen (p.a.) |
5 year | 6.25% | 6.75% |
5 years to 10 years | 6.10% | 6.60% |
FAQs on Indian Bank Tax Saver Scheme
- What is the purpose of this scheme?
This scheme was introduced in order to meet the requirements of those customers who wish to grow their investment along with enjoying tax benefits under Section 80C for investments up to Rs.1,50,000 in every financial year.
- How often does the interest compound under this plan?
Interest compounds quarterly under the Indian Bank Tax Saver Scheme.
- Is there any loan / foreclosure waiting period?
No loan or foreclosure is allowed up to 5 years after opening this deposit account.
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