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Tax Saver Deposit
A UGB Tax Saver Deposit is a 5-year fixed deposit that qualifies for tax deduction under Section 123 and Schedule XV of the Income Tax Act 2025, up to the prescribed limit. It combines guaranteed returns with tax efficiency, though it carries a mandatory 5-year lock-in with no premature withdrawal except death. Suitable for customers looking to reduce taxable income while earning fixed returns.
Overview
Eligibility Requirements
Rates & Others
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Tenure of deposit – Min 5 yrs to max 10 yrs.
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Can be opened by individuals and non-profit organizations to Resident Indians for himself/ herself as an individual or in the capacity of the Karta of HUF having PAN
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Investment up to Rs. 1,50,000/- can be made deductible from Income u/s 123 of I.T. Act 2025
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Lock-in period of 5 years.
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Nomination facility is available.
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Not accepted as security/collateral security for granting loan facilities.
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Pre-mature payment is not allowed before the expiry of five (5) years from the date of its receipt except in case of death of depositor.
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TDS applicable.
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Interest Rate as applicable to Fixed Deposits.
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Maximum Deposit: Not exceeding Rs. 1,50,000/- in a year.
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Term Deposit shall not be transferred to another Bank