The Axis Bank Tax saver fixed deposit falls in line with the finance bill passed in 2006 wherein tax benefits were announced by the government for term deposits with a tenure greater than 5 years. The tax saver fixed deposits offered by Axis Bank do not allow for premature withdrawal and hence the lock in period of this scheme is 5 years so as to enable it to fall under tax exemption. The deposit will reach maturity in 5 years as well.
The eligibility criteria to apply for the Axis Bank tax saver fixed deposit are as follows
|Account Type||Joint or Single|
Rs 100 is the minimum amount
Rs 150,000 is the maximum amount
|Rate of Interest||
7.5% p.a. for regular depositors
8% p.a. for senior citizens
|TDS||Tax is deducted on the interest on the deposit in accordance with provisions of sections 194A and 195|
|Loan against Axis Bank Tax Saver Fixed Deposit Scheme||Term deposits cannot be pledged against loans|
|Nomination (if any)||The tax saver fixed deposit allows for nomination through a declaration statement provided by the deposit holder|
The Axis Bank tax saver fixed deposit has a term of 5 years and to provide tax benefits the lock in period of this deposit is also 5 years. As such the interest rates provided are 7.5%* for regular depositors and 8% p.a. for senior citizens. These rates are effective from 14th September 2015 and is applicable as on 2nd December, 2015. Both Individual and joint deposit holders are required to give a written declaration to nominate persons in case of their demise. In case of the unfortunate demise of a deposit holder, the premature payment will be made out to the nominees.
*Rates are subject to change. Please consult the official bank release before applying.
The type of schemes available under the Axis Bank Tax saver fixed deposit are TDGRI which is a reinvestment type and TDGQI which is a quarterly interest type of scheme
No. To provide tax benefits the policy does not allow early withdrawals and has a lock in period equal to the term of 5 years
An individual must be over the age of 18 years and must have a PAN number to open an individual deposit. In cases of joint deposits, the first holder should be an adult over the age of 18 years and the second or third depositor can be a minor. In cases of joint deposits, the deduction from income under section 80c will be available only to the first deposit holder who must have a PAN number
No. Depositors cannot pledge the term deposit against a loan
The tax saver offers both individual and joint deposits
Useful Information on Axis Bank Fixed Deposit