The minimum investment amount for Tax Saving FD varies from bank to bank. Additionally, there is no upper limit.
Tax Saving FD Interest Payment
The interest rate offered on this type of FD varies from bank to bank. You can choose from the cumulative interest or non-cumulative options of tax-saving FDs that are generally offered by most of the banks.
Cumulative option means that the interest earned on your principal will be reinvested and paid to you at the time of maturity. On the other hand, in case of non-cumulative option, interest will be paid to you on monthly/quarterly/half-yearly/annual basis as offered by the bank. Senior citizens are generally offered higher interest rates on tax saving FDs.
tax savings Fixed deposit Can be opened jointly, however, tax benefits can be claimed only by the first holder.
to tax
Depending on your tax bracket, interest is taxed. TDS is applicable as the interest collected is taxable depending on the tax bracket of the investor. Deposit interest is paid monthly or quarterly, or it can be reinvested. By submitting Form 15G (or Form 15H for senior individuals) with the bank, a person can avoid TDS deduction on the interest earned.
premature withdrawal
Premature withdrawal or partial withdrawal is not allowed before the lockout period of five years.
However, in case the depositor passes away before the maturity of the fixed deposit, the penalty will not be prescribed, and the nominee or legal heir will be allowed to make early payments even before lock-in, as per the rules. Duration.
according to
Website, “If the fixed deposit holder dies and no nomination is made at the time of his death, the officer of the branch from where the fixed deposit was issued shall pay the amount due to the deceased as his legal heirs.” Will do. Per the rule.”