Standard Chartered Bank Tax Saving Fixed Deposit
Updated on: Aug 31st, 2023
Navigating the realm of tax saving can often seem daunting, but with the right instruments, it becomes a smoother journey. Standard Chartered Bank, a global banking giant, presents its Tax-Saving Fixed Deposits (FDs) as a potent tool in this quest. These FDs are designed to enhance your wealth through assured returns and significantly reduce your taxable income under Section 80C of the Income Tax Act.
In this blog, we'll unpack the intricacies of the tax-saving FDs from Standard Chartered, offering you a clear roadmap for your fiscal strategies. Join us as we demystify tax-saving with Standard Chartered!
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 Standard Chartered 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 SC 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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