HDFC Bank offers Tax Saver FD Scheme of 5 years tenure at an interest rate of 7.00% p.a. for regular citizens and 7.50% p.a. for senior citizens. Depositors can claim tax deductions on fixed deposits under Section 80C of the Income Tax Act, in a financial year.
HDFC Bank Tax Saving FD Highlights
| Deposit Amount | Rs 100 to Rs 1.5 lakh in a financial year |
| Tenure | 5 years |
| Interest Payable Options | Monthly, Quarterly, At Maturity (Re-investment) |
| Premature Withdrawal | Not allowed |
| Loan Against FD Facility | Not available |
HDFC Bank Tax Saving FD
- Interest Rates for Senior Citizens – 7.50% p.a.
- Interest Rates for Others – 7.00% p.a.
- Applicable Tenure – 5 years
Features of HDFC Tax Saving FD
- Deposit amount – Minimum: Rs. 100 and in multiples of Rs. 100; Maximum – Rs. 1.5 lakhs in a financial year
- Tenure – 5 years
- As with any other tax saving FDs, HDFC Tax Saver FD comes with a lock-in period of 5 years, i.e., depositors cannot prematurely withdraw these FDs unlike regular FDs
- Depositors can open an HDFC tax-saving FD with a monthly or quarterly payout option. The scheme also allows reinvestment of the interest component to the deposit amount.
- In the case of the monthly interest pay-out option, the interest will be paid monthly at a discounted rate over the standard fixed deposit rates
- Additional interest rates of 0.50% p.a. over and above the regular FD interest rates are offered to senior citizen FD depositors
- In the case of joint deposits, tax benefits under Section 80C can only be availed by the first/primary account holder of the FD
HDFC Tax Saving FD Eligibility Criteria
- Resident Individuals, or
- Hindu Undivided Family
How To Open HDFC Tax Saving FD
The existing customers of HDFC Bank can open tax saver FD either through internet banking, mobile banking or by visiting HDFC branch. New customers can open a fixed deposit account by opening a savings account primarily.
HDFC Bank Tax Saving FD Calculator
You can use the HDFC FD Calculator to know the maturity amount and FD interest income. You just need to enter the principal amount, tenure and applicable HDFC FD rates
TDS on HDFC Tax Saver Fixed Deposits
TDS @ 10% is deducted on the FD interest amount if interest income exceeds Rs. 40,000/- (Rs. 50,000/- for senior citizens) in a financial year. However, if PAN details are not provided, TDS @ 20% will be levied on the FD interest income.
Tax Deduction on HDFC Tax Saver FDs
The principal amount of the fixed deposit qualifies for tax deduction under Section 80C and the interest income is taxable under “Income from other sources” in the IT return.
Senior citizens can avail of tax deductions of up to Rs 50,000 on the interest income of deposits (including fixed deposits) under Section 80TTB of the Income Tax Act. Here, the term ‘deposits’ means the deposit accounts opened with post offices, banks and cooperative societies engaged in the business of banking.
Documents Required For Opening Tax Saving FD
Depositors need to submit the following documents to open Tax Saver FD:
- PAN
- Aadhaar Card
- Photocopy
- Proof of age (for senior citizens)