Tax Saving FD Scheme: You will get good returns, this scheme is amazing for 5 years..

Tax Saving FD Scheme: If you are looking for better returns, risk-free investment, and income tax saving schemes, then a fixed deposit is good. Although fixed deposit can be done anywhere and in any way. But, if you do it with planning and get tax exemption on good returns, then there is a double benefit. You will see tremendous benefits in Tax Saving FD Scheme with a lock-in period of 5 years. So let's know why this scheme is great.

Why is the Tax Saving FD Scheme a good investment?

As the name suggests, tax saving... so it is clear that income tax exemption will be available in this. The return you get in the lock-in period of 5 years will be tax-free. However, only interest up to Rs 40 thousand in 1 year is tax-free. According to the Income Tax Act 1961, tax exemption will be available in Section 80C. Investments up to Rs 150000 in every financial year will be completely tax-free. There is no risk because there is a government guarantee on fixed deposits. Fixed deposits can be made in any government or private bank. There is also a facility to make tax-saving FD in post offices.

Where is how much FD interest rate available?
Bank of Baroda: 6.50%
SBI: 6.50%
PNB: 6.35%-6.50%
Canara Bank: 6.70%
Union Bank: 6.50%
Indian Overseas Bank: 6.50%
Post Office TD: 6.9% to 7.5%
HDFC Bank: 7.00%
ICICI Bank: 7.25%
Axis Bank: 7.00%
IndusInd Bank: 7.25%
Kotak Bank: 6.20%
Yes Bank: 7.25%
DCB Bank: 7.40%
RBL Bank: 7.10%
IDFC Bank: 7.00%
Note: Senior citizens get 50 basis points more interest on tax saving FD than a common investor. This is applicable in most of the banks. Lock in the period in Tax Saving FD Scheme
The tax saving FD scheme is for 5 years. Your money remains locked in these 60 months. There is no exemption for withdrawal of money before 5 years i.e. maturity. In case of the death of the FD holder, the nominee is allowed to withdraw money before maturity.
The return limit is fixed, TDS will be deducted if it is more

There is no tax on tax-saving FD. But, if the interest received on the invested money is more than Rs 40 thousand in a year, then tax will have to be paid. In the case of senior citizens, the exemption limit is up to Rs 50 thousand. On maturity, the bank will pay the remaining amount only after deducting TDS.

Tax Saving FD Benefits
- Tax exemption under Section 80C of Income Tax
- Exemption on investment up to Rs 1.50 lakh per year
- Interest rate fixed for 5 years, no risk
- Nominee facility
- 0.50% more interest for senior citizens
- No facility for breaking FD before maturity and auto-renewal

If you want to invest in Tax Saving FD, then these documents are required
- ID proof (Aadhar card, PAN, driving license, passport)
- Address proof (Aadhar card, utility bill, ration card, voter ID card, driving license, passport)
- Signature proof (passport or driving license)
- 2 passport-size photos