Syndicate Bank offers its customers a scheme called SyndTaxShield Deposit. The scheme is drawn on the lines of the Bank Term Deposit Scheme, 2006, notified by the Union government. A term deposit account can be opened for a period of 5 years under the scheme with the rate of interest being 5.50% p.a. Senior citizens and staff of the bank will be eligible for additional interest of 0.50% p.a.
General public are offered interest of 5.50% p.a. for opening a SyndTaxShield deposit while citizens above the age of 60 years are offered a rate of return of 6% p.a. The account can be opened with a minimum deposit of Rs.100 with the maximum deposit amount being Rs.1.5 lakh per annum.
Some important details of SyndTaxShield Deposit are listed in the table below:
|Account type||Term deposit|
Maximum: Rs.1.5 lakh
Minimum: 5 years
General citizens: 5.50% p.a.
Senior Citizens: 6.00% p.a.
|Premature withdrawals||Not Available|
Note: Interest rates applicable with effect from 27 November 2020.
Other Tax Saving Scheme
In case, you want to the calculate maturity amount before opening a term deposit account under the SyndTaxShield Deposit scheme, you can use BankBazaar’s fixed deposit calculator. All you need to do is input details like deposit amount, interest rate, and tenure and click on the ‘Calculate’ button.
A SyndTaxShield deposit can be opened by individuals and Hindu Undivided Families (HUFs).
You can open a SyndTaxShield deposit online by logging into your internet banking account.
No, you cannot secure a loan by pledging the SyndTaxShield deposit.
The interest earned on the term deposit is taxable under the Income Tax Act.
The payment of interest can be made in two ways. It can either be made in lumpsum at the time of maturity or at the end of every month or quarter.
You can deposit a minimum of Rs.100 and multiples of thereof and a maximum of Rs.1.5 lakh per person in a year.
A SyndTaxShield deposit can either be opened singly or jointly. It must be noted here that if the holding is joint, tax deduction under Section 80C of the Income Tax Act can be availed by only the first holder of the account.
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