Established since before Independence, this bank has a vast number of years of experience under its belt and has developed the expertise to offer comprehensive banking products and solutions in the states of Andhra Pradesh and Odisha with a total workforce exceeding 20,000 employees.
Of the many products offered by Andhra Bank, the term deposit scheme aptly titled AB Tax saver has become a popular choice for many customers to avail tax benefits. This scheme offers benefits to the individual under the notifications of the union government, particularly notification number 203/2006 that was issued on 28th of July 2006
To dwell a little deeper into the scheme, below are the salient features of the AB Tax Saver
This policy is open to any individual and is also open to Hindu Undivided Families (HUF) but can be availed only by those who possess the PAN Card.
In order to enjoy the tax benefits from this scheme, there is a cap on how much one can invest in the scheme and the maximum permissible investment amount is capped to Rs 1.50 Lakh per year.
Since the policy is to save tax, it offers no premature or early withdrawals and has a lock-in period equal to the term of the policy which is 5 years. Individuals can avail deduction from income under section 80C in this scheme.
Rate of interest in this deposit scheme is 7.75% since the term has a maturity period of 5 years. This rate of interest is higher by 0.50% for senior citizens and eligible retired staff of AB can receive additional interest. The rate of interest offered is with effect since 07.11.2015 and can be changed as per bank’s discretion.
Amount of Deposit in this scheme can be anywhere under 1.5 lakhs per year with a lock in period of 5 years. The maturity period is equal to the lock in period to avoid early withdrawals and ensure the individual can avail the appropriate tax benefit
Useful Information on Andhra Bank Fixed Deposit