Among the various financial products offered to customers by HDFC Bank, fixed deposits are quite popular. One such FD that is booked by many is the HDFC tax-saving FD. Under this FD scheme, the principal amount is deposited for a fixed minimum tenure of 5 years.
Here, you get a tax deduction of up to ₹1.5 lakhs per financial year under Section 80C of the Income Tax Act 1961. Moreover, the interest income earned from this scheme is subject to TDS if the interest amount is above ₹40,000 for general citizens and ₹50,000 for senior citizens.
Let us dive deeper into the details of HDFC Tax Saving FD.
| Account Type | Tax Saver FD – Five Years Tax Saving Fixed Deposit |
| Amount | Minimum: ₹100 (in multiples of ₹100)Maximum: ₹1.5 lakhs (each financial year) |
| Tenure | Minimum: 5 years (lock-in)Minimum: No data available |
| Interest Rate | Senior Citizen: 7.50%General Public: 7.00% |
| Loan Facility | Not available |
HDFC Tax Saving Fixed Deposit Interest Rate 2024
Here is a table showcasing the interest rate applicable for HDFC tax saving deposits for both general and senior citizens.
| Type of Investor | Tenure | Interest Rate |
|---|---|---|
| General Citizen | 5 years | 7.00% p.a. |
| Senior Citizen | 5 years | 7.75% p.a. |
How to Apply for an HDFC Tax Saving Fixed Deposit?
You can apply for the tax saving fixed deposit scheme of HDFC Bank using online as well as offline methods. Let us take a look at the steps to follow for each method.
1. Online Mode
To book your HDFC Bank tax saving FD, follow these steps:
- Step 1: Visit the official website of HDFC Bank and log in to your NetBanking account.
- Step 2: Navigate to the ‘Transact’ option and select ‘Open Fixed Deposits’.
- Step 3: Select the bank branch of your choice and enter all the relevant details.
- Step 4: Fill in the nominee’s name, select continue and confirm the information provided.
Following these steps will help you to successfully open a tax-saving FD account. Your FD receipt will also be available to download as soon as the information entered is verified.
2. Offline Mode
You can also book your HDFC Bank tax saver FD using an offline method. Follow these steps to seamlessly complete the process.
- Step 1: Visit the nearest branch of HDFC Bank.
- Step 2: Ask the bank executive for an application form to book the tax saving FD account.
- Step 3: Fill up the form with all necessary details such as FD scheme, tenure, personal details and initial sum.
- Step 4: Deposit the fund for the FD along with all the necessary documents asked by the bank personnel.
After the successful verification of your details, the bank will provide you with the fixed deposit receipt as proof of your FD booking.
HDFC Tax Saver FD Eligibility Criteria in 2024
Before you apply for HDFC 5-year tax saver FD, you have to fulfil certain eligibility criteria. They are:
- Indian resident
- Individuals
- HUFs (Hindu Undivided Families)
Documents Required for HDFC Tax Saver FD in 2024
Tax saving fixed deposit of HDFC requires certain documents to be produced while booking. They are as follows:
- Voter ID Card
- LIC Policy
- Pension Payment Order
- Passport
- Aadhaar Card
- Secondary School Leaving Certificate
- PSU Issued ID Cards
- Government ID or Defence ID Card
- PAN Card
Terms and Conditions of the Scheme 2024
When you apply for an HDFC Bank tax saving FD, there are certain conditions cited by the bank that you have to follow to avoid discrepancies in your savings. They are:
- Only HUFs and individuals can invest money in the tax-saving FD of HDFC.
- You have to serve the lock-in period of 5 years, during which no premature withdrawal of the deposited amount is allowed by the bank.
- Joint holders can make this deposit, but only the first or primary account holder will be eligible for the tax benefits.
- You cannot take loans against your tax-saving fixed deposit of HDFC Bank.
- If you wish to remain excluded from TDS applicable on your tax saving FD interest income, submit the completed Form 15G or Form 15H online or to the nearest HDFC bank branch. This must be done on the first week of the financial year and every time you book a new deposit.
You now have a clear concept of HDFC tax saving FD and how to apply for one. However, you must remember to read all the instructions before booking your fixed deposit. If you need to compare the returns, use an FD calculator to get results for your choice of investment. Moreover, you can only claim tax benefits on this scheme during the financial year and not before.
FAQs
You need to inform the bank if your interest income in a financial year does not exceed ₹40,000 (₹50,000 for senior citizens). In such cases, you have to submit Form 15G or 15H.
Yes, a joint fixed deposit account can be booked by senior citizens with either another senior citizen or a non-senior citizen.
Factors influencing the amount of tax you save mainly depend on the tax bracket your income falls under and the amount you choose to invest in the scheme.
You will get your TDS certificate from HDFC Bank in Form 16A
No. HDFC Bank pays a fixed interest rate on their 5-year tax saving scheme. So, whether you are a general or senior citizen, the rate will not fluctuate during the scheme tenure.
Disclaimer
This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.
