Key Features are:
- 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 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
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:
- Hindu Undivided Family
- Partnership Firm
- Body Corporate
How to open a Tax Saving Deposit?
Please visit your branch for opening the deposit.
Interest rates and Service charges
TDS & PAN
- 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.