Andhra Bank, now known as Union Bank, offers a special fixed deposit scheme called the Union Tax Saver FD. These scheme offers investors the chance to obtain attractive returns on their fixed deposit while also enjoying tax benefits under Section 80C of the Income Tax Act. There are different interest payout options ranging from monthly, quarterly and half-yearly to maturity. Loan facility can be availed after completion of the five-year lock-in period.
The features of the Andhra Bank Tax Saver FD or Union Tax Saver scheme are as given below:
The following entities meet the eligibility criteria for the Andhra Bank Tax Saver FD:
The interest rates for the Andhra Bank Tax Saver FD or Union Tax Saver effective from 15 December 2020 is 5.55% p.a. for up to 5 years and 5.60% p.a. for up to 10 years. The interest is credited on a quarterly basis and is calculated on a daily product basis. The months that interest is credited are April, July, October, and January.
No, there is no penalty on premature closure of the FD but there is a lock-in period of five years during which premature closure is not allowed.
Yes, Tax Deducted at Source (TDS) is applicable on Tax Saver FDs.
No, there is no automatic renewal facility available on the Andhra Bank Tax Saver FD or Union Tax Saver.
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