Plan Your Taxes Efficiently With Ujjivan SFB Tax Saver FD

Customers who maintain an FD account with Ujjivan Small Finance Bank can enjoy interest rates varying between 3.75%-8.25%. Moreover, senior citizens get an additional 0.50% interest across all tenures. 

At present, if you book a Ujjivan SFB tax saver FD, you can enjoy up to 7.20% interest per financial year. Senior citizens, on the other hand, get returns at 7.70% per annum for a duration of 5 years. 

Since Ujjivan Small Finance Bank is licensed by the Deposit Insurance and Credit Guarantee Corporation (DICGC), you can rest assured about your investments. This automatically insures deposits of up to ₹5 lakh made by each Ujjivan SF Bank customer. 

Consider downloading Stable Money to book a 1-year FD with Ujjivan SF Bank and get secured returns of 8.75% per annum.

Reasons Why You Should Consider Investing in Ujjivan SFB Tax Saver FD

Many features of tax-saving FDs make them a vital instrument for efficient tax planning. Here’s a breakdown of how it may be useful for customers:

1. Higher Ujjivan SFB Tax Saver FD Interest Rate

When compared to regular savings accounts, these term deposits have comparatively higher rates of return. Therefore, individuals readily rely on them for steady wealth creation while saving taxes simultaneously.

1. Tax Exemption Under Section 80C of the Income Tax Act of 1961

Regular fixed deposit accounts of any bank do not let their customers save on their income tax outgo. However, u/s 80C of the IT Act, one can enjoy up to ₹1.5 lakh of income tax deduction upon investing in tax-saver FDs. 

1. Secure Investment

All investments made towards a Ujjivan SFB FD are insured under DICGC for a corpus of up to ₹5 lakh. Moreover, unlike ELSS investments, you do not have to worry about fluctuating returns that often result from market downturns. Therefore, you keep earning a stable rate of return until your account matures. 

1. Mandatory Lock-in for Disciplined Savings

Tax-saving fixed deposits have an inherent lock-in period of 5 years. This means no one is allowed to withdraw their funds before the term ends. Thus, it is a great option to park your money and continue growing the amount without giving in to your impulses. 

1. Wide Variety of Payout Options

Ujjivan Bank Small Finance FDs provide multiple interest payment methods. Those looking for a regular income passage can select the monthly or quarterly frequency of interest payouts. Others can choose a cumulative deposit where the corpus will be paid at maturity. 

Finally, when you choose to invest in Ujjivan SFB tax saver FD, you get much flexibility in terms of the principal sum. Customers can independently decide how much amount they should invest as per their individual goals and requirements. 

Additional Highlights of a Ujjivan SFB Tax Saver FD

Under the tax-saver FD scheme, Ujjivan Bank’s depositors can contribute up to ₹1.5 lakh in a single financial year. Beside this aspect, here are a few more pointers to consider:

• The bank allows both members of a HUF as well as Indian residents to open the tax-saver FD.
• One can initiate a tax-saving fixed deposit scheme with a minimum investment of ₹1,000.
• Depositors can either choose between a cumulative or non-cumulative FD scheme. 
• The bank will automatically renew these FDs once they mature for an equivalent duration at the current rate of interest.
• No person can avail a secure loan by presenting a tax-saving fixed deposit as collateral.

Documents Needed for a Ujjivan Bank Tax Saver FD Booking 

Individuals who had not previously engaged in banking activities with Ujjivan Small Finance Bank must submit the following documents to open a tax-saving account:

1. For Identity and Signature Proof

• PAN card
• Voter ID card
• Aadhaar card
• Passport
• Driving licence

1. For Address Proof

• Any utility bill (like electricity bill, internet bill, gas bill, etc.)
• PAN card
• Bank account passbook (should not be more than 3 months old)

Final Word

You must always start any type of investment with a clear purpose. Like, when you are looking to contribute to Ujjivan SFB tax saver FD, your primary goal is most likely to safely grow your money while simultaneously reducing your income tax burden.

If you are wondering what can be the most time-saving method to open a fixed deposit with Ujjivan SF Bank, then download the Stable Money app on your phone. We list two booking options for those who are interested in opening FDs with Ujjivan Small Finance Bank. You can verify the return with our built-in calculator and then proceed to invest as per your goals.