Discover the Benefits of Tax-Saving Deposits
Everyone should make it a priority to save for the future. Tax-saving deposits can help one save money as well as make money, and they are a great investment choice that not only allows one to reduce their tax liabilities but also provides competitive interest rates on the funds deposited.
Learn more about the eligibility criteria, benefits and features of tax-saving deposits in this article.
What are Tax-Saving Deposits?
Tax-saving deposits are fixed deposits offered by banks, which allow clients to claim a deduction on their taxable income under Section 80C of the Income Tax Act. One can claim a deduction of up to Rs.1.5 lakhs per financial year by investing in tax-saving deposits.
Features
The tax-saving deposits provided by Federal Bank have a lock-in period of five years and premature withdrawals are not allowed. There is also no loan facility available on these deposits. The minimum deposit amount is just Rs.100.
Eligibility
To be eligible for tax-saving deposits, one must fulfil certain criteria. For example, non-resident Indians (NRIs) are not eligible for these deposits. In addition, one must submit a copy of the PAN card when applying to start a deposit.
Tax Exemptions
One of the biggest advantages of tax-saving deposits is savings on tax they offer. One can claim a deduction of up to Rs.1.5 lakh per financial year under Section 80C of the Income Tax Act with these deposits.
The interest earned on tax-saving deposits is also exempt from tax at up to Rs.40,000 per financial year.
Advantages of Tax-Saving Deposits with Federal Bank
Federal Bank offers tax-saving deposits called Federal Tax Savings Deposits, which offer attractive interest rates and flexible tenures ranging from five to 10 years. One can invest in these deposits with a minimum amount of Rs.100 and enjoy tax benefits while earning higher interest rates.
Additionally, Federal Bank's online platform, FedNet, is extremely user-friendly and their 24/7 virtual assistant Feddy can answer all queries and make it easier for one to invest in tax-saving deposits.
Conclusion
Tax-saving deposits are a great investment option for those looking to save on taxes and earn more on their savings. Federal Bank offers tax-saving deposits with attractive interest rates, flexible tenures and easy online access through FedNet and FedMobile.
Do not miss out on this opportunity to save more and earn more with Federal Tax Savings Deposits. Visit the Federal Bank website today and start investing for the future!