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.
If the account is to open for senior citizen, then the depositor has to submit age proof to confirm the age.
|Type of account
|Single or Joint
Min. - 100 Rupees and after that multiples of 100 Rupees
Max. - One lakh fifty thousand in a year.
For below one crore rupees investment
Regular rate - 7.65 % p.a.
Senior citizen rate - 8.15 % p.a.
|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 for Senior citizens
|Rate of Interest
|7.65 % per annum
|8.15 % per annum
These rates can be changed by the bank any time.