Tax-saving bank fixed deposits have a fixed tenure of 5 years. As a senior citizen, a bank fixed deposit is a great tool for you to invest your money. You can choose to invest a huge part of your money in bank fixed deposits because your principal investment amount will be safer as comapred to equity investments.
Tax Saving Fixed Deposit for Senior Citizens Interest Rates
|Bank Name||Interest Rate|
|IndusInd Bank Tax Saving FD||7.00%|
|IDFC First Bank||6.75%|
Under Section 80C of the Income-tax Act,1961, you can claim a deduction of up to Rs.1.5 lakh in one financial year. The interest that you get on your deposits with a bank, post offices, or co-operative banks, is tax-exempt under section 80TTB of the Income Tax Act. For example, as a senior citizen, you can claim a deduction of up to Rs.50,000 interest income that you get from all the above-mentioned from your gross total income before tax.
Nomination facility for tax-savings fixed deposits. When you open a fixed deposit, you should mention a nominee so that your legal heirs do not have to face any difficulties claiming the amount. When you submit a nomination, you have to give a form called Form DA1.
FAQs on Tax Saving Fixed Deposit for Senior Citizens
What is the minimum amount I have to invest to open a Tax Saver fixed deposit account?
Almost all banks will ask you to deposit at least Rs.100 for a Tax Saver fixed deposit.
Do I as a senior citizen get a different fixed deposit rate for this scheme?
Yes, most banks will give you an additional interest rate as a senior citizen.
What is the maturity range available for a Tax Saver Fixed Deposit?
The scheme has a tenure range of 5 years and 10 years.
Can I make a premature withdrawal in tax-saving Fixed Deposits?
No, banks will not allow you to make a premature withdrawal in tax-saving fixed deposits.
Who can invest in a tax saving fixed deposit?
Anyone who is eligible for the scheme can invest in a tax saving fixed deposit.