Bandhan Bank Tax Saving FD

What is a Bandhan Bank Tax Saving FD?

Bandhan Bank Tax Saver FD is a fixed deposit scheme that allows you to earn tax benefits while earning a fixed rate of interest. Unlike regular fixed deposits, premature withdrawal is not permitted before maturity in Tax Saving FDs. It requires a minimum deposit of ₹1,000, with a maximum investment of ₹1.5 lakh in a financial year as per Section 80C of the Income Tax Act. The interest rate on the tax-saving FD is 6.25% for general citizens and 7.25% for senior citizens. 

How Does a Bandhan Bank Tax Saving FD Work?

Here is how the Bandhan Bank Tax Saving FD works, explained in simple steps:

• Open the FD: Apply online via internet banking, mBandhan mobile app, or by visiting a nearest branch.
• Deposit the Amount: You can invest a minimum of ₹1,000 and up to a maximum of ₹1,50,000 in a financial year as per Section 80C.
• Interest Payout Options: Flexibility to receive interest monthly, quarterly, or at maturity.
• Lock-in Period: The deposit remains locked for 5 years; premature withdrawal is not permitted.
• Interest Calculation: Bandhan Bank offers attractive FD interest rates that provide consistent returns throughout the tenure.
• Maturity: After 5 years, you receive the principal along with the accumulated interest.

Bandhan Bank Tax Saving FD Highlights

Here are the key highlights of the Bandhan Bank Tax Saver Fixed Deposit presented in a clear table for easy reference:

How to Open a Bandhan Bank Tax Saving FD?

The application process for a Tax Saving FD at Bandhan Bank can be completed both online and offline:

1. Online FD Booking

   To open a Bandhan Bank Tax Saving FD online using Internet Banking or the mBandhan app, follow these steps:

   • Visit the Platform: Go to the official Bandhan Bank website or log in to the mBandhan app.
   • Sign In or Register: Use your internet banking credentials or register as a new user.
   • Select Tax Saver FD: Navigate to the Fixed Deposit section and choose the “Tax Saver FD” option.
   • Enter Investment Details: Provide the investment amount (₹1,000 – ₹1.5 lakh) and confirm the fixed tenure of 5 years.
   • Choose Interest Payout: Select your preferred interest payout option – monthly, quarterly, or on maturity.
   • Complete KYC: Ensure your KYC details are updated. Complete verification if not already done.
   • Confirm and Submit: Review the details, submit the application, and receive the FD receipt via email or in the app.

2. Offline FD Booking

   To apply for a Bandhan Bank Tax Saving FD offline, follow these steps at your nearest branch:

   • Visit the Branch: Go to the nearest Bandhan Bank branch and request the Tax Saving FD application form.
   • Fill the Form: Enter your personal information and investment details in the form.
   • Submit Documents: Provide the required KYC documents such as PAN card, ID proof, and address proof.
   • Deposit Investment Amount: Pay the investment amount through cheque, cash, or account transfer.
   • Collect FD Receipt: Receive the FD receipt as proof of your investment.

Who Should Consider Bandhan Bank Tax Saving FD?

Bandhan Bank Tax Saving FD is suitable for the following types of investors:

• Tax Savers: Individuals aiming to reduce taxable income under Section 80C.
• Resident Customers: Indian residents can invest in this FD for guaranteed returns.
• HUFs: Hindu Undivided Families can also invest in the scheme.
• Stable Return Seekers: Investors who value consistent and assured earnings over uncertain market-driven outcomes.
• Long-Term Planners: People looking to invest for a disciplined 5-year period.

TDS on Bandhan Bank Tax Saving FD

Investments made in a Bandhan Bank Tax Saving FD qualify for tax deduction benefits under Section 80C of the Income Tax Act, up to a maximum of ₹1.5 lakh in a financial year. Tax Deducted at Source (TDS) is applicable on the interest earned if it exceeds ₹50,000 in a year for general (non-senior) citizens and ₹1,00,000 for senior citizens. Customers can avoid TDS deduction by submitting Form 15G or Form 15H if their annual income is below the exemption limit. 

Key Takeaways

Bandhan Bank Tax Saving FD offers a simple way to save on taxes while earning fixed returns. Investments are eligible for deductions of up to ₹1.5 lakh in a financial year, with a mandatory 5-year lock-in period ensuring disciplined savings. The rate of interest of Tax Saving FD is 6.25% for general citizens and 7.25% for senior citizens, providing stable earnings over the tenure. While premature withdrawal is not permitted, investors can benefit from flexible interest payout options such as monthly, quarterly, or on maturity. With attractive FD interest rates and the convenience of applying both online and offline.