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Federal Tax Savings Deposit

Federal Tax Savings Deposit

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

  • Features & Benefits
  • How to open ?
  • Interest rates and Service charges
  • TDS & PAN

Key Features

  • 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.
  • Interest rates: Please visit Interest rates page
  • Submission of a copy of PAN card is mandatory for opening Tax Savings Deposit

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

Period

  • 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

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.

  • 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.
  • You can also apply for PAN through Federal Bank Branches.