Know About 5 Year Tax Saving Fixed Deposit Scheme by HDFC Bank

The Five Year Tax Saving FD by HDFC Bank provides tax benefits and it is also a good option for investment. The rates of interest offered on this FD are very attractive. Under the Income Tax act of 1961 (section 80C), deductions are made available for deposits up to one lakh fifty thousand rupees for investing in tax saver FDs.

A five-year lock-in facility is provided on this FD. The principal amount increases quarterly on calculation of the interest and the reinvestment interest. 

Under the regulations of prevalent Taxation, TDS gets subtracted when applicable.

The customer must fulfil one eligibility criteria to open the FD in the bank:

  • Individual Indian Resident or
  • Undivided Hindu Family

If the account is to open for senior citizen, then the depositor has to submit age proof to confirm the age.

Below are given the features of the FD:

Type of account Single or Joint

Min. -   100 Rupees and after that multiples of  100 Rupees

Max. -  One lakh fifty thousand in a year.

Interest Rates

For below one crore rupees investment

Regular rate - 7.65 % p.a.

Senior citizen rate -  8.15 % p.a.

Duration Five years lock in
Tax Deducted at Source(TDS)

 The TDS is subtracted when the payable per customer or reinvested interest is more than ten thousand rupees in a financial year.

A TDS certificate which contains the TDS deduction details is sent by the bank on quarterly basis.

The rate of TDS is 10 % for HUFs and resident individuals.

Rates of interest offered by the Scheme:

Category Regular
Rates for Senior citizens
Rate of Interest 7.65 % per annum 8.15 % per annum

These rates can be changed by the bank any time.