Investing in a fixed deposit (FD) account is probably the safest form of investment compared to other investment vehicles, including stocks and bonds, to name a few. There are certain FD schemes that let you enjoy tax benefits on the investment amount and the HDFC 5-Year Tax Saving Fixed Deposit is one such scheme.
With this plan you can enjoy tax exemptions under Section 80C of the Indian Income Tax Act, 1961. However, the plan comes with a lock-in period within which you cannot withdraw funds from the account. The interest rate is similar to that of any other regular HDFC fixed deposit schemes.
Eligibility criteria
|
Amount |
Rs.100 to Rs.1.5 lakh |
|
Rate of interest |
7.25% p.a. (for general citizens) 7.75% p.a. (for senior citizens) |
|
Period |
5 years |
|
TDS |
|
The interest rate is in sync with any other HDFC FD scheme. General citizens will enjoy an interest rate of7.25% p.a. while the senior citizens are entitled to get an interest rate of 7.75% p.a.
Documents required
The interest will be calculated on a monthly or quarterly basis. For reinvestments, the interest is calculated on a quarterly basis. Also, the principal amount is raised (for reinvestments) so as to include the interest you have earned in the previous quarter. TDS is deducted based on the income tax regulations.
You must intimate the bank in case your total interest earned in a financial year doesn't fall under the tax bracket. You can do so by submitting a form to the bank. However, remember the following points:
Yes, you can open a joint account. However, the first holder will be subject to tax exemptions.
It entirely depends on the tax bracket you fall under and the amount you have invested in the scheme. The more you invest in this FD plan, the more you will be able to save on tax.
The bank will issue a TDS certificate in Form 16A.
You can visit any HDFC branch and fill in the booking account opening form to open the account.
TDS is deducted every time the bank pays interest or reinvests interest in a given financial year. Additionally, TDS is also deducted on the accumulated interest that's yet to be paid right at the end of a financial year.
Yes, you can open a joint FD account with a non-senior citizen.
*All amounts, tenures, repayment requirements, interest rates, charges, fees, ceilings, requirements, criteria, exclusions, terms and conditions are as of January 2020. HDFC reserves the right to modify, replace, or add to or subtract from any of the above, in any way, at any time, and at its own discretion.
Useful Information on HDFC Fixed Deposit
Other Fixed Deposit Schemes Offered by HDFC
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