Tax Saver FD Indian Bank

This is a special type of fixed deposits under which the investor gets the benefit of a tax relief if he/she invests an amount in it. Maximum tax benefit is limited to an investment of Rs 1.5 lakh. Moreoevr, there is a lock-in period of 5 years in such a deposit. Tax saving FD is a good option for anyone who is looking for a shorter lock-in period and willing to have a guaranteed returns hence majority of people use this investment option for tax-saving purposes, as they are considered to be less risky compared to other options.

Interest Earned on Tax Saver FD

  • It offers you a fixed interest rate.
  • The interest rate is same for whole duration i.e. for 5 years.
  • The interest rate on tax saving Fixed Deposit varies from bank to bank.
  • Senior citizens will earn higher interest on tax saver FDs.
  • Interest earned on the principal amount is fully taxable in your hands. Interest will be added to your income and taxed at the income tax rates according to your income slab.
  • The interest is compounded quarterly.
  • Higher interest rate is offered to senior citizens which is between 0.25% to 1% higher than general tax saving FDs.
  • There will be a TDS i.e. tax will deducted at source, if the interest earned is more than Rs 40,000 (Rs 50,000 for senior citizens) in a financial year.

Eligibility for Tax Saver Fixed Deposit

  1. All resident individuals.
  2. Non-resident Indians (NRIs).
  3. Hindu undivided family (HUF).
  4. Minor.

Loan Facility for Tax Saver Fixed Deposit

Loan cannot be given by pledging tax saving Fixed Deposits.

Lock-in Period of Tax Saver Fixed Deposit

Premature withdrawal is not allowed under tax saving Fixed Deposits and its maturity period is 5 years from the date of investment.

TDS on Tax Saver Fixed Deposit

Interest earned on a bank tax-saving FD is subject to TDS. The rate of TDS is 10% in case interest amount exceeds Rs 40,000 (Rs 50,000 for senior citizens) in a financial year with a single bank. In case, the PAN of an investor is not available, the TDS will be deducted at the rate of 20%. If your income is below the taxable limit then you can submit form 15G or Form 15H (for senior citizens) in order to avoid TDS deduction.

You can get the refund of higher TDS deducted by bank at the time of filing your income tax returns (ITR).

Find below Indian Bank Tax Saver FD Interest Rates for both general and senior citizen with scheme name.

Indian Bank Tax Saver FD Interest Rates

  • INTEREST RATE (general) - 5.25%
  • INTEREST RATE (senior citizen) - 5.75%
  • SCHEME NAME - IB Tax Saver schemes

Key Features of Indian Bank Tax Saver FD

  • It has a lock-in or maturity period of 5 years.
  • Maximum permissible tax rebate is limited to Rs.1,50,000 in a financial year.
  • You need to undergo Know Your Customer (KYC) process at the time of opening a Tax Saver FD account.
  • Individuals, Hindu undivided family (HUF) and NRIs can claim tax rebate in it.
  • Minimum amount of Rs. 100 and maximum amount of Rs. 1,50,000 can be invested.
  • Interest earned is taxable.
  • Nomination facility is also available.
  • There will be a TDS i.e. tax will deducted at source on interest earned .
  • You cannot withdraw this FD before maturity i.e. before 5 years.
  • It gives you a fixed interest rate.
  • Facility of loan against tax saver fixed deposits is not available.
  • Tax saver deposits can be opened both singly and jointly. If the mode of holding is joint, then deduction under section 80C is available only to first holder of FD account.

Latest News on Tax Saver FD

13-01-2020: SBI revised Tax Saver FD rates

Effective from 10th January 2020, the SBI has cut the tax saver FD rates by 15 bps on long-term deposits maturing in 5 years to 6.10%.

09-01-2020: Axis Bank slashed Tax Saver FD interest rate

Axis Bank announces to slash interest rates for the tenor of 5 years to up to 10 years to 6.50%.

24-12-2019: HDFC Bank redued Tax Saver FD interest rate

The revised rate for HDFC Tax Saver FD stands at 6.30%. For senior citizens the rates with additional 50 bps will be 6.80%.

12-11-2019: ICICI Bank reduces Tax Saver FD rate

The revised interest rates on ICICI Bank tax saving FD for 5 years will be 6.40% for regular customers and 6.9% for senior citizens. Its interest rates will be effective from December 7, 2019.

Other Banks Tax Saving Fixed Deposit Scheme

Allahabad BankAllahabad Up Gramin Bank
Andhra BankAndhra Pradesh Grameena Vikas Bank
Andhra Pragathi Grameena BankArunachal Pradesh Rural Bank
Assam Gramin Vikash BankAxis Bank
Bandhan BankBangiya Gramin Vikash Bank
Bank Of BarodaBank Of India
Bank Of MaharashtraBaroda Gujarat Gramin Bank
Baroda Rajasthan Kshetriya Gramin BankBaroda Up Gramin Bank
Bihar Gramin BankCanara Bank
Catholic Syrian BankCentral Bank Of India
Central Madhya Pradesh Gramin BankChaitanya Godavari Grameena Bank
Chhattisgarh Rajya Gramin BankCity Union Bank
Corporation BankDcb Bank
Dena BankDena Gujarat Gramin Bank
Dhanalakshmi BankEllaquai Dehati Bank
Federal BankGramin Bank Of Aryavart
Hdfc BankHimachal Pradesh Gramin Bank
Icici BankIdbi Bank
Idfc First BankIndian Bank
Indian Overseas BankIndusind Bank
Jammu And Kashmir BankJammu And Kashmir Grameen Bank
Jharkhand Gramin BankKarnataka Bank
Karnataka Vikas Grameena BankKarur Vysya Bank
Kashi Gomti Samyut Gramin BankKaveri Grameena Bank
Kerala Gramin BankKotak Mahindra Bank
Langpi Dehangi Rural BankLaxmi Vilas Bank
Madhya Bihar Gramin BankMadhyanchal Gramin Bank
Maharashtra Gramin BankMalwa Gramin Bank
Manipur Rural BankMeghalaya Rural Bank
Mizoram Rural BankNagaland Rural Bank
Narmada Jhabua Gramin BankOdisha Gramya Bank
Oriental Bank Of CommercePallavan Grama Bank
Pandyan Grama BankPaschim Banga Gramin Bank
Pragathi Krishna Gramin BankPrathama Bank
Puduvai Bharathiar Grama BankPunjab And Sind Bank
Punjab Gramin BankPunjab National Bank
Purvanchal Gramin BankRajasthan Marudhara Gramin Bank
Saptagiri Grameena BankSarva Haryana Gramin Bank
Sarva Up Gramin BankSaurashtra Gramin Bank
South Indian BankState Bank Of India
Sutlej Kshetriya Gramin BankSyndicate Bank
Tamilnad Mercantile BankTelangana Grameena Bank
The Nainital BankTripura Gramin Bank
Uco BankUnion Bank Of India
United Bank Of IndiaUtkal Grameen Bank
Uttar Banga Kshetriya Gramin BankUttar Bihar Gramin Bank
Uttarakhand Gramin BankVananchal Gramin Bank
Vidharbha Konkan Gramin BankVijaya Bank
Yes Bank 
Disclaimer: The Saving Fixed Deposit Interest Rates keep on changing. You are advised to check the interest rates with banks before making your FD.      Source: Bank Websites