BANK TERM DEPOSIT
A 5-year fixed deposit savings option for individuals and HUFs.
THIS FIXED DEPOSIT SAVINGS OPTION CALLED BANK TERM DEPOSIT SCHEME, CAME INTO EFFECT IN THE YEAR 2006
DETAILS AND FAQ
Resident Individuals and HUFs are eligible to invest.
- The annual investment allowed is up to ₹1,50,000 minimum being ₹100, and further investments in multiples of 100.
- In case of joint holders (more than one holder), the tax-saving deduction, under section 80C, can be claimed by the first holder alone.
- The maturity date of a term deposit is 5 years from the date of receipt.
- There is no option to prematurely close the deposit or avail a loan against it.
- The rate of return is as specified by the bank.
- Returns on the deposit are subject to income tax, calculated as per the individual’s tax slab.