5 benefits of Tax Saver Fixed Deposit
March 26, 2021
Avail tax exemptions under Section 80C of the Income Tax Act by investing in ICICI Bank Tax Saver. Here are the benefits you can avail.
Often, while planning finances, we fail to take into consideration tax saving investments. It is only when the tax is deducted from the monthly income, that one realises how much could have been saved. While we are liable to pay taxes, we are also entitled to claim deductions on various investment instruments, to get tax benefits.
There are several options that allow us to save taxes as prescribed under Section 80C of the IT act. Tax Saver FDs being an ideal choice when it comes to safety from market uncertainty and for saving taxes, all this, while having the investments grow.
What is a Tax Saver FD?
It is a type of Fixed Deposit in which one can avail tax exemption under Section 80C of the Income Tax Act, 1961. If you are investing in a Tax Saver FD, you’re eligible to claim deductions of up to Rs 1.5 lakh in a financial year. Tax Saver FD interest rates remain fixed throughout the five year tenure. Like other FDs, Tax Saver FDs also offer a flexible interest pay-out option, where the pay-out can be received monthly, quarterly or periodically. Senior citizens are offered higher rate of interests.
Some key benefits:
- Start small: As a new investor, you can start with a minimum amount of Rs 10,000
- Assured returns*: You can earn stable and safe returns at an attractive interest rate, unlike risky financial instruments, where the returns are dependent on market conditions
- Tax benefit: You are eligible to claim tax deductions of up to Rs 1.5 lakh, as prescribed in Section 80C of the ITA
- Nomination facility: Option to nominate a person who can take over the account proceeds on your behalf. Whether the account is held solely or jointly, you can nominate an individual by filling a form prescribed under the Banking Companies
- Smallest lock-in period: This FD has one of the smallest lock-in period of just five years, during which, you are not allowed any premature withdrawal of funds
If you want to save tax and earn assured returns*, Tax Saver FD is the ideal choice for you. To invest, you can easily open a tax saving Fixed Deposit account at ICICI Bank.
*Assured Returns are subject to change due to Tax Deducted at Source (TDS), wherever applicable.
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