IDFC First Bank Tax Saving FD

What is an IDFC FIRST Bank Tax Saving FD?

IDFC FIRST Bank Tax Saving FD allows you to save on taxes while earning steady returns. You can invest a minimum of ₹1,000 and up to ₹1.5 lakh in a financial year. The deposit is eligible for deductions under Section 80C of the Income Tax Act, making it useful for tax planning. The bank offers an interest rate of 6.60% for general citizens, while senior citizens earn 7.10% with the additional 0.5% benefit. Tax saving FDs come with a 5-year lock-in period, and funds cannot be withdrawn before maturity.

How Does an IDFC FIRST Bank Tax Saving FD Work?

Here’s how IDFC FIRST Bank Tax Saving FD operates:

• Open the FD: Apply online through internet banking, mobile banking, or by visiting an IDFC FIRST Bank branch.
• Deposit the Amount: Invest any amount between ₹1000 to ₹1.5 lakh in a financial year, as per Section 80C.
• Lock-in Period: The FD is locked for 5 years; premature withdrawal is not permitted.
• Interest Calculation: Interest is calculated on the deposit amount at the applicable fixed rate.
• Interest Payout: Choose to receive interest monthly, quarterly, or at maturity.
• Maturity: At the end of 5 years, you will receive your principal deposit amount and accumulated interest.

IDFC FIRST Bank Tax Saving FD Highlights

Here are the key highlights of the IDFC FIRST Bank Tax Saver FD in a simple table:

How to Open an IDFC FIRST Bank Tax Saving FD?

You can open this FD online or by visiting a branch, depending on what is more convenient for you.

1. Online FD Booking

   • Visit Website/App: Go to the official IDFC FIRST Bank website or mobile banking app.
   • Log In or Register: Sign in to your net banking or mobile banking account. New users can register easily.
   • Select FD Option: Navigate to the Fixed Deposit section and choose Tax Saving FD.
   • Enter Details: Enter the investment amount ₹1,000 to ₹1.5 lakh and select the 5-year tenure.
   • Choose Interest Payout: Select how you want to receive interest monthly, quarterly, or at maturity.
   • Complete KYC: Update your KYC details if not already done.
   • Confirm & Submit: Review all details, confirm, and submit. The FD receipt will be sent to your email or app.

2. Offline FD Booking

   • Visit Branch: Go to your nearest IDFC FIRST Bank branch.
   • Fill Application Form: Complete the Tax Saving FD application form available at the branch.
   • Submit Documents: Provide ID proof, address proof, and PAN card for verification.
   • Deposit Amount:  Pay through cheque, cash, or account transfer.
   • Collect FD Receipt: Receive the FD receipt as proof of your investment.

Who Should Consider IDFC FIRST Bank Tax Saving FD?

The following categories of investors are eligible and may benefit from this scheme:

• Looking for Tax Benefits: Best suited for depositors aiming to reduce taxable income under Section 80C.
• Resident Individuals: Residents of India can open this FD to save and earn fixed returns.
• HUFs: Hindu Undivided Families (HUFs) can also invest in this FD.
• Conservative Investors: Customers who prefer steady returns over market-linked risks.
• Long-Term Savers: Investors who can commit to a 5-year lock-in for disciplined savings.

TDS on IDFC FIRST Bank Tax Saving FD

Tax Deducted at Source (TDS) applies to interest earned if it across all deposits exceeds ₹50,000 in a financial year, or ₹1,00,000 for senior citizens. Investors must provide their PAN as per Section 139A(5A) of the Income Tax Act to ensure proper credit of TDS and issuance of TDS certificates. To avoid TDS, eligible individuals investing in a Tax Saving Fixed Deposit IDFC FIRST Bank can submit Form 15G or Form 15H, provided their total income is below the taxable limit.

Key Takeaways

IDFC FIRST Bank Tax Saving FD offers fixed returns along with tax-saving benefits under Section 80C, allowing investments of up to ₹1.5 lakh in a financial year. The scheme has a lock-in period of 5 years with no option for premature withdrawal. The rate of interest of Tax Saving FD is 6.60% for regular depositors and 7.10% for senior citizens. The Tax Saver FD can be easily opened through both online and offline application processes, making it a convenient choice for long-term savings and tax planning.