Tax Saver Deposit

A Tax Saver Fixed Deposit (FD) is a special type of fixed deposit that offers individuals the dual benefit of earning attractive interest and saving taxes under the Income Tax Act, 1961. It is a popular choice for those who want to build a long-term savings corpus while taking advantage of tax deductions.

Unlike regular FDs, the Tax Saver FD comes with a 5-year lock-in period, during which the deposited amount cannot be withdrawn. Tax Saver FDs are ideal for individuals who are looking to reduce their taxable income under Section 80C of the Income Tax Act, while still earning guaranteed returns on their investments. The amount deposited in a Tax Saver FD is eligible for a deduction up to ₹1.5 lakh in a financial year, making it an excellent tool for tax planning.