Tax Saving Fixed Deposit scheme

Tax Saving Fixed Deposit scheme

Tax Saving Fixed Deposit scheme

People looking at saving money often ask whether investing in a Recurring Deposit (RD) is a better option than a Fixed Deposit (FD). While FDs and RDs are few of the safest forms of investment available, but there are some differences between the two:

  • RDs are a type of ‘term deposit’, so people with regular incomes can save a fixed amount every month and earn interest at the same rate offered on FDs
  • FDs rely on you making a lump sum payment

In case you’re concerned about ensuring the safety of your money, HDFC Bank offers a Regular Fixed Deposit, which offers:

  • Easy investment with high returns
  • Great rates, flexibility, and security – all in one offering
  • Higher rates of interest for senior citizens
  • Convenience of making deposits through NetBanking

The 5-Year Tax Saving Fixed Deposit scheme too comes with certain benefits:

  • Minimum investible amount is Rs 100, and thereafter in multiples of Rs 100
  • You can invest a maximum of Rs 1.5 lakh in a given financial year
  • You can choose between a monthly and a quarterly payout
  • You are eligible for deductions under Section 80C of the Income Tax Act (IT Act)

On the other hand, if you don’t want to invest a lump-sum, HDFC Bank’s Recurring Deposit scheme allows you to invest small amounts every month while enjoying the following benefits:

  • Same rate of interest as an FD account
  • Start with an investment as small as Rs 1000 (and multiples of Rs 100 thereafter), up to a maximum of Rs 15 lakh per month
  • A minimum tenure of 6 months (and multiples of 3 months thereafter) up to a maximum of 10 years