ICICI Bank Tax Saving FD

ICICI 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 ICICI Tax Saving FD

• Deposit amount – Minimum: Rs. 10,000; Maximum – Rs. 1.5 lakhs in a financial year

• As with any other tax saver FD schemes, ICICI Tax Saver FD comes with a lock-in period of 5 years, i.e., depositors are not allowed to prematurely withdraw fixed deposits unlike regular FDs
• Depositors can open an ICICI tax-saver FD with a monthly or quarterly pay-out option. The scheme also offers a reinvestment plan, wherein the FD interest component is reinvested into the deposit amount and thereby, helps in deriving the power of compounding
• In the case of the monthly interest pay-out option, the FD interest shall be paid monthly at a discounted rate over the regular fixed deposit interest rates.
• In monthly and quarterly pay-out options, the interest amount will be credited to the savings account on a monthly basis and quarterly basis respectively.
• 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, the tax benefits can only be availed by the first account holder of the fixed deposit account

How To Open ICICI Tax Saving FD

Individuals can open tax saver FD either through internet banking, mobile banking or by visiting ICICI Bank branch.

Internet Banking

Existing customers of ICICI Bank can log in to Internet Banking and go to the ‘Customer Service’ section. Customers need to click on ‘Service Request’ and tap on ‘Category: Deposits’ to ‘Open Standard Fixed Deposit’. The FD account will be opened right away.

iMobile app

Customers who already have an account with ICICI Bank can also login to the ICICI Bank iMobile app. Customers need to click on the ‘Account & Deposits’ icon and then on ‘Deposits’ and tap on the ‘Open FD’ section & submit.

Customer Care

The existing customers can also call ICICI Customer Care on 1800 1080 from their registered mobile number. The timings are between 7:00 a.m. and 9:00 p.m.

ICICI Bank Branch

New customers can open Tax Saver FD by visiting the ICICI Bank branch. For more details, customers can bank’s website.

ICICI Bank Tax Saving FD Calculator

You can use the online FD Interest Calculator and get details of the fixed deposit maturity amount and interest income. You just need to enter the principal amount, tenure and applicable ICICI Bank FD rates

Tax Deduction on ICICI Tax Saver FDs

The principal amount of the FD qualifies for tax deduction under Section 80C of the Income Tax Act. However, the interest income is taxable under “Income from other sources” in the IT return.

Senior citizens can claim a tax deduction 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’ refers to the deposit accounts opened with cooperative societies engaged in the business of banking, post office, and banks.

TDS on ICICI Tax Saver Fixed Deposits

If interest income exceeds Rs. 40,000/- (Rs. 50,000/- for senior citizens), TDS @ 10% is deducted on the fixed deposit interest amount in a financial year. However, if PAN details are not submitted, TDS @ 20% will be levied on the FD interest income.

ICICI Tax Saving FD Eligibility Criteria

• Resident Individuals, or
• Hindu Undivided Family
• Non-Resident Indians (NRIs)

Documents Required For Opening Tax Saving FD

Depositors need to submit any one of the following documents for identity and address proof to open tax saver FD in ICICI Bank:

• Passport
• Driving Licence issued by the Regional Transport Authority
• Aadhaar Card
• Voter ID
• Job card issued by NREGA, duly signed by a State Government Officer
• Letter from the National Population Register

If the above address proof does not include the communication address, then the following documents are required to submit to the bank within 3 months of account opening:

• Utility Bill, not older than 2 months (telephone, post-paid mobile phone, electricity, piped gas, water bill)
• Municipal Tax receipt or Property Tax Bill, not older than 1 year
• Letter of Allotment for accommodation from the employer issued by the State or Central Government Departments, scheduled commercial banks, public sector undertakings, statutory or regulatory bodies, financial institutions and listed companies
• Leave & Licence agreement with any of the above employers. Agreement to contain the customer’s name as the employee
• Pension or family pension payment orders issued to retired employees by the public sector undertakings or government departments, if they contain the address.