• Andhra Bank FD Tax Saver

    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.

    Features of AB Tax Saver Scheme

    The features of the Andhra Bank Tax Saver FD or Union Tax Saver scheme are as given below:

    • The minimum period of investment is 5 years.
    • The maximum period of investment is 10 years.
    • There is a lock-in period of 5 years.
    • The minimum deposit is Rs.5,000 and multiples of Rs.1,000 thereafter.
    • The maximum deposit is Rs.1.5 lakh in a single financial year.
    • Loan facility can be availed after the 5-year lock-in period is over.
    • Tax exemption is available for the single depositor or the first holder in case of joint depositors.

    Eligibility Criteria for Andhra Bank Tax Saver FD

    The following entities meet the eligibility criteria for the Andhra Bank Tax Saver FD:

    • Individuals who are Resident Indians
    • Hindu Undivided Family (HUF)
    • Companies
    • Firms
    • Trusts
    • Corporates
    • Clubs
    • Institutions
    • Societies

    Andhra Bank Tax Saver FD Interest Rates

    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.

    FAQs on Andhra Bank FD Tax Saver

    1. Is there any penalty on premature closure of Andhra Bank Tax Saver FD or Union Tax Saver?

      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.

    2. Is TDS applicable on Tax Saver FD?

      Yes, Tax Deducted at Source (TDS) is applicable on Tax Saver FDs.

    3. Is there automatic renewal facility on the Andhra Bank Tax Saver FD or Union Tax Saver?

      No, there is no automatic renewal facility available on the Andhra Bank Tax Saver FD or Union Tax Saver.

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