Nainital Bank Tax Saving Fixed Deposit
Updated on: Aug 31st, 2023
Every investor seeks the perfect blend of returns and tax efficiency. With Nainital Bank's Tax-Saving Fixed Deposits, this balance becomes seamlessly possible. These specific FDs cater to the dual purpose of securing your money's growth and reducing your tax outlay under Section 80C of the Income Tax Act.
In this insightful blog, we'll explore the intricate features and compelling benefits of Nainital Bank's tax-saver FD offerings. Whether you're a seasoned investor or just starting, understanding these FDs could be your step towards a smarter financial future. Dive in with us to unlock the potential of your investments.
Features of Tax-Saving FDs
Duration: Tax Saving FDs usually come with a 5-year lock-in period, prohibiting any withdrawals during this time.
Interest Offerings: Competitive interest rates are a highlight, and institutions like Federal Bank often provide an additional rate increment for senior citizens.
Borrowing against FD: Given their fixed tenure, these FDs typically can't be used as loan collateral.
Interest Disbursement: Different payout options, such as monthly, quarterly, or annual intervals, might be available. Some banks also provide reinvestment of the earned interest.
Renewal Policy: Unless instructed otherwise, these FDs can be automatically renewed upon maturity for an equivalent period at the current interest rate.
Early Withdrawal Charges: Withdrawals before the end of the lock-in period aren't permissible. Withdrawing after the lock-in but before FD maturity might invite penalties.
Investment Limits: While there's a minimum deposit requirement to start a tax-saving FD, the upper limit typically remains INR 1.5 lakh annually, aligning with the 80C guidelines.
Tax Deduction at Source (TDS): TDS might be deducted if the interest income surpasses a specified limit.
Eligibility Criteria and Documents Required
- Both individuals and Hindu Undivided Families (HUFs) are qualified to invest in these tax-saving FD schemes.
- For the purpose of tax savings, one can opt for fixed deposits in either public or private sector banks. However, cooperative and rural banks don't qualify.
- A 5-year term deposit in a post office is also recognized as a tax-saving instrument.
- Deposits can be made individually or as a joint account. However, only the first account holder is entitled to the associated tax advantages.
Regarding the documents required-
- Aadhar Card
- Drivers License
- Gas Bills
- Utility Bills
- Bank Statement
- Or a Cancelled Bank Cheque
What is the main purpose of Nainital Bank's Tax-Saving FD?
It is a tax-saving instrument where investments are eligible for deductions under Section 80C of the Income Tax Act.
What is the lock-in period for these FDs?
The lock-in period for tax-saving FDs is typically 5 years.
Can I withdraw my FD before the lock-in period ends?
No, premature withdrawals are not allowed during the lock-in period.
What is the interest rate offered on these FDs?
The interest rates vary, and Nainital Bank might offer differential rates for general customers and senior citizens. Always check the latest rates on their official website.
returns on FD
Lock in returns as high as
8.35% before they go down
Top Banks Tax Saving FD
Top Banks FD Schemes
Understanding Fixed Deposit
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