Equitas Small Finance Bank Tax Saving Fixed Deposit

Updated on: Sep 7th, 2023

Taxation is an aspect every investor needs to grapple with, regardless of their choice of bank or financial institution. Though evading taxes entirely becomes impossible after reaching a certain threshold, there are various tax-saving instruments to help reduce overall tax liability. One of these is the tax-saving FD, which Equitas Small Finance Bank offers.


Unlike regular FDs, tax-saving FDs have a minimum tenure of 5 years. The principal amount invested in these FDs is tax-deductible under section 80C, but the interest earned is taxable.

Features of the Tax-saving FDs

  • Interest earned on FDs is counted as part of total income and is taxable per prevailing slab rates.
  • As per section 80C of the Income-tax Act 1961, investments in tax-saver FDs up to ₹1,50,000 are deductible.
  • Senior citizens (over 60) can claim a deduction of up to ₹50,000, while non-senior citizens can claim up to ₹40,000.
  • If PAN isn't provided, TDS is deducted at 20%.
  • If your total income is less than ₹2.5 lakhs, TDS can be avoided by providing Form 15G to the bank. Senior citizens can submit Form 15H.

Further Insights into Features

Duration: Tax-saving FDs come with a 5-year lock-in period, meaning you can't withdraw funds during this time.

Interest Offerings: Equitas Small Finance Bank offers competitive interest rates. Typically, senior citizens are given an additional rate increment.

Borrowing against FD: These FDs usually can't be mortgaged for loans due to their fixed tenure.

Interest Disbursement: Various payout options might be available, such as monthly, quarterly, or annually. Some banks also allow reinvestment of interest.

Renewal Policy: Unless specified otherwise, these FDs might be auto-renewed after maturity for the same duration at the then-prevailing rate.

Early Withdrawal Charges: Pre-mature withdrawals aren't allowed during the lock-in period. After the lock-in, withdrawing before maturity might result in penalties.

Investment Limits: Generally, there's a minimum deposit requirement for these FDs, with the maximum limit usually being ₹1.5 lakh per year, in line with 80C rules.

Tax Deduction at Source (TDS): TDS is deducted if the interest income crosses certain thresholds.

Eligibility Criteria for Opening a Tax-Saver FD with Equitas Small Finance Bank

  • Resident Individuals: Any Indian resident can open a tax-saver FD.
  • HUF: The family's Karta can open an FD.
  • Minors: Minors can, via guardians.
  • Single or Joint Accounts: Both types of accounts can be opened. Only the primary account holder usually gets the 80C benefit for joint accounts.
  • Existing Equitas Small Finance Bank Customers: Existing customers may find the online process smoother due to pre-existing KYC. New customers would need complete KYC verification.
  • Amount: Investments can begin from as low as ₹100 and go up to ₹1.5 lakhs yearly for availing 80C benefits.

Documents Required for an FD Account at Equitas Small Finance Bank

For newcomers to the bank

Identity Proof and Signature Proof

  • PAN Card
  • Driving License
  • Passport
  • Voter’s ID
  • Aadhar Card

For Address Proof

  • PAN Card
  • Driving License
  • Passport
  • Voter’s ID
  • Aadhar Card
  • Utility Bill
  • Bank account Passbook (Updated and not older than 3 months)


What is the maximum and minimum amount I can deposit in a Tax-saving FD?

Typically, investments can start from ₹100; the maximum that can be claimed as a deduction under Section 80C is ₹1.5 lakhs annually.

Do senior citizens receive additional interest on Tax-saving FDs?

Yes, senior citizens usually get higher rates than regular deposit rates.

Is the interest from Tax-saving FDs tax-exempt?

No, only the deposited principal gets the 80C benefit. Interest is taxable.

Note: Always cross-check with the official Equitas Small Finance Bank website or a bank representative for the most updated and accurate information.

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