How to Save Tax with Federal Bank

If you use the financial services offered by the Federal Bank you can avail tax-saving advantages under different sections of the Income Tax Act on products like mutual funds, fixed deposits, interest payments towards education and housing loans.

Individuals can save a considerable amount of money on tax by investing it in the right places. The Income Tax Act has made provisions for deductions under different sections, and customers can save tax on fixed deposits, mutual funds, premium and interest payments made towards housing and education loans among others. Following are the different products and services that can be availed from Federal Bank in your attempt to save taxes.

Tax Benefits under Section 80C:

  1. Housing Loans:
  2. Federal Bank offers different kinds of housing loans for different needs, and each of these loans can help you avail tax benefits. The interest rates applicable to each loan will depend upon the maximum limit of the respective scheme. For loans under Rs.75 lacs, the interest rate will range from 9.68% to 9.83%. For loans in excess of Rs.75 lacs, the interest rate varies from 9.68% to 10.08%. Following are the housing loans available with Federal Bank:

    1. Federal Housing Loan Scheme: This scheme allows customers to borrow funds for acquiring land, constructing / repairing / remodelling / renovation / extending a house or flat. The maximum amount that can be borrowed through this loan is Rs.15 lacs.

    2. Loans for Purchase of House Plots: Individuals who have found a plot of land that they wish to purchase can avail a loan from Federal Bank to make their dreams come true. The maximum amount that can be availed through this loan is Rs.25 lacs.

    3. Property Power: This loan can be availed to consolidate debt, expand the horizons of your business, get your children married or even for your children’s education. The maximum amount that can be availed through this loan is Rs.5 crores and the interest rate varies from 13.48% to 14.88%.

    4. House Warming Loan: As the name suggests, this loan can be availed for expenses related to house warming and similar ceremonies. The interest rate on this facility will be the existing housing loan rate + 2%.

  3. Federal Tax Savings Fixed Deposit:
  4. This scheme can be availed by making a minimum deposit of just Rs.100. The tenure of the scheme is five years, as is the lock-in period. The interest rate applicable to this facility is 7.50%.

  5. Federal Life Insurance:
  6. The premium payments made towards life insurance policies and the amount you receive upon maturity can help you avail tax benefits, and Federal Bank offers two life insurance products that can help your cause.

    1. IDBI Federal Childsurance Savings Protection Insurance Plan: Whether it is for the education requirements or marital purposes of your child, it is always wise to start saving for future expenses right from when they are young, and this plan is designed specifically for that reason.

    2. IDBI Federal Lifesurance Savings Insurance Plan: This life insurance policy from Federal Bank promises significantly high rebate in case the sum assured exceeds Rs.10 lacs, and ensures that your family is financially protected in case of emergencies.

Tax Benefits under Section 80E:

  1. Education Loans:
  2. Federal Bank offers two kinds of education loans, both of which can help you in saving some money that you would otherwise spend on paying taxes.

  3. Special Vidya Loan:
  4. This facility can be availed by individuals who wish to educate their children. The maximum amount that can be borrowed against this loan varies depending upon where the educational course is pursued. If the loan is taken out for higher education in India, the maximum amount that can be borrowed is Rs.10 lacs while the maximum amount granted for higher education abroad is Rs.20 lacs. The interest rate applicable to this loan will vary from 12.93% to 16.38%.

  5. Federal Career Solutions Loan:
  6. This loan can be availed by individuals who wish to take their careers to the next level by undertaking the right educational course to improve their skills and knowledge. The maximum amount that can be borrowed through this loan is Rs.20 lacs in case the course is undertaken in India, and Rs.25 lacs in case the course is undertaken abroad. The interest rates for this facility will vary from 12.93% to 16.38%.

  7. Mutual Funds:
  8. Mutual funds from Federal Bank can be availed by investing a sum as low as Rs.1000 on a monthly basis. The sound regulation, cost-efficiency, professional management and risk-diversification of mutual funds make them an ideal option that can help you not only maximise your income from investments, but also help you save money on income tax.

Tax Benefits under Section 80TTA:

Interest Income from Savings Accounts:

Federal Bank offers a number of savings accounts to cater to the requirements of an extensive customer base. The interest earned from these accounts can be claimed as deductions under Section 80TTA.

Following are the different types of savings accounts offered by the bank:

  1. Freedom Savings Bank Account
  2. FedBook Selfie – Zero Balance Account
  3. Young Champ
  4. Fed Excel
  5. Savings Bank Plus
  6. Mahilamitra
  7. Yuvamitra
  8. Fed Smart
  9. Basic Savings Bank Deposit Account
  10. Federal Institutional Savings Accounts

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