Bangalore Bangalore: Tax saving fixed deposits are witnessing a lot of interest from investors who want high yields and tax savings. The high interest rates offered by banks and its dependability in protecting investors’ funds contribute to its popularity. Compared to savings accounts, FDs offer better chances of earning interest. Moreover, fixed deposit investments offer tax deductions under Section 80C of the Income Tax Act of 1961. Any investor can claim a maximum deduction of Rs 1.5 lakh per year by investing in a tax-saving fixed deposit account.
How it works for you
- Safe investment option: Owing to its regulation by the Reserve Bank of India and the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance programme, the bank’s fixed deposit scheme is widely known for its dependability. As a result, investors can rest assured that their funds are safe.
- High interest: Tax saving fixed deposits are an attractive investment option for individuals who wish to reduce their tax liability while earning a high rate of return. They typically earn interest in the range of 7-8% per annum on a maximum deposit amount of Rs 1.5 lakh over five years. On maturity, the money parked in tax saving fixed deposits can be easily redeemed along with the interest.
- Lump sum: Investment in lump sum is allowed, which is a convenient way of investing.
- Tax saving option: The minimum period for earning tax benefits is five years, but one can also extend the investment period. Interest earned on fixed deposits is subject to tax deduction at source (TDS). Under Section 80C of the Income Tax Act 1961, investors are eligible for an income tax deduction of up to Rs 1,50,000 every year.
- Easy process: The process of opening a tax saving FD is simple, as the investor just needs a copy of his PAN card and Aadhaar card.
Why invest in Ujjivan Tax Saving Deposit
Ujjivan Small Finance Bank offers a variety of liabilities suitable for every customer segment. Its Tax Saver Fixed Deposit has become a popular investment option for individuals who want to reduce their tax burden and get higher returns than other banks. Ujjivan offers a high interest rate of 7.2% per annum. To get returns at these attractive rates, investors have to commit for five years.
