Federal Tax Savings Deposit

Features & Benefits

Looking for the ways to save income tax ? Federal Tax Savings Deposit will be the convenient and risk free option for you.


Minimum deposit amount for Federal Tax Savings Deposit is just Rs. 100/- and additional amount in multiples of Rs.100/-
Maximum amount of Federal Tax Savings Deposit is Rs. 1,50,000.
Tax benefits under Sec. 80 C of the Income Tax Act is applicable.  In the case of joint accounts, tax benefits are available to first account holder.
Premature withdrawal of tax savings deposit is not permitted. Deposits have a lock in period of 5 years and you can withdraw the amount only after 5 years.
Loan facility is not available in the case of Tax savings deposit.
Submission of a copy of PAN card is mandatory for opening Tax Savings Deposit

How to open ?

Who can open?

The following entities who intend to keep the amount deposited with the Bank for a minimum period of 5 years and undertake to satisfy the condition of lock-in-period under Sec. 80 C of the Income Tax Act can open the deposit:

  • Individuals
  • Hindu Undivided Family
  • Trust
  • Partnership Firm
  • Body Corporate


How to open a Tax Saving Deposit?

Please visit your branch for opening the deposit.

Open Federal tax saving deposit through FedNet or our mobile banking application FedMobile.


Terms & Conditions

Maturity Value

  • Maturity value will be computed at the applicable rate of interest, compounded at quarterly intervals and subject to the incidence of TDS on periodic interest



  • Tax Savings Deposits are having a fixed period of 5 years. The deposit has a lock-in period of 5 years


Transfer of Deposit

  • At the request of the depositor/s, deposit under the scheme may be transferred from one branch of the bank to another branch.
  • Deposits under the scheme shall not be transferred from one bank to another bank


Proof of Investment

  • If the depositor requests, a certificate will be issued for producing before tax authorities



  • In the case of Federal Tax Saving Deposits, applicable TDS will be deducted from the interest credited to operative account/ term deposit periodically.
  • PAN number of customer shall be mandatorily updated in bank accounts.
  • Kindly visit your Federal Bank branch with your PAN card (original & copy) to get the same updated on the bank accounts.

Interest Rates & Charges

How to open a Tax Saving Deposit using FedMobile?