IndusInd Bank Tax Saving FD

IndusInd Bank Tax Saving FD offers tax benefits along with fixed returns. It is a safe and reliable investment option with FD interest rates of 6.65% for general customers and 7.15% for senior citizens. Investors can claim deductions of up to ₹1.5 lakh per financial year under Section 80C of the Income Tax Act.

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Maximum returns Offered by Guaranteed

6.5%**

Fixed Deposits

(by SBI bank)

(5-10 Years)

6.9%***

Public Provident Fund

(other popular options)

(15 Years)

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We are rated++
rating
10.5 Crore
Registered Consumer
51
Insurance Partners
5.3 Crore
Policies Sold

What is an IndusInd Bank Tax Saving FD?

IndusInd Bank Tax Saving FD is an investment plan designed to help investors save taxes while earning assured returns. The deposit amount may range from ₹10,000 to ₹10 lakh. But, investors can claim a deduction of up to ₹1.5 lakh in a financial year under Section 80C of the Income Tax Act. The bank offers interest rates of 6.65% for regular investors and 7.15% for senior citizens. These Tax Saving FDs have a mandatory 5-year lock-in period, during which premature withdrawals are not permitted. 

Information About
Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund
Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund
Guaranteed Return Plans
Returns Before Tax
6.9%* (TAX-FREE)
Returns After Tax
6.9%*
Guaranteed Returns
Yes
Life Cover
Yes
Tax on Profit
Tax Free*
Risk
No Risk
Fixed Deposits
Returns Before Tax
7% (TAXABLE)
Returns After Tax
4.8%
Guaranteed Returns
Yes
Life Cover
No
Tax on Profit
Taxable
Risk
Low Risk
Debt Mutual Fund
Returns Before Tax
8% (TAXABLE)
Returns After Tax
5.5%
Guaranteed Returns
No
Life Cover
No
Tax on Profit
Taxable
Risk
High Risk
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*For annual premium upto ₹5 Lacs

How Does an IndusInd Bank Tax Saving FD Work?

A Tax Saving FD IndusInd Bank offers a secure way to save taxes while earning fixed returns. Here's how it functions: 

  • Open the FD: Apply online via IndusInd Bank’s web application, IndusMobile app, or IndusNet banking portal. 
  • Deposit the Amount: Invest any amount starting from ₹10,000 to ₹10 lakh in a financial year. However, the tax deduction limit is ₹1.5 lakh as per Section 80C of the Income Tax Act
  • Lock-in Period: The deposit is locked for 5 years; premature withdrawal is not allowed. 
  • Interest Calculation: Interest is calculated on the deposit amount at the applicable fixed rate.
  • Interest Payout: Choose to receive interest monthly, quarterly, half-yearly, yearly, or at maturity. 
  • Maturity: At the end of 5 years, receive your deposit amount and accumulated interest.

IndusInd Bank Tax Saving FD Highlights

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

Feature Details
Deposit Amount Minimum ₹10,000 and up to ₹10 lakhs in a financial year
Tenure Fixed term of 5 years
Interest Payout Options Monthly, Quarterly, Half-Yearly, or Annual (Reinvestment option also available)
Tax Saving FD Interest Rates 6.65% (Regular Investors), 7.15% (Senior Citizens)
Premature Withdrawal Not permitted
Loan Against FD Facility not available

How to Open an IndusInd Bank Tax Saving FD

Opening a Tax Saving Fixed Deposit (FD) with IndusInd Bank is a straightforward process, available both online and offline. Here's a detailed guide for Tax Saving Fixed Deposit IndusInd Bank to help you through each step:

  • Online FD Booking

IndusInd Bank provides a fully digital process for opening a Tax Saving FD, making it simple for both new and existing customers. Here are the steps to apply online:

  • Visit Digital Platforms: Go to the IndusInd Bank website, log in via IndusNet internet banking, or use the IndusMobile app.
  • Log In or Register: Existing customers can log in directly, while new customers need to register to begin the application.
  • Verify Identity: Enter your Aadhaar and PAN details. New customers or those investing above ₹90,000 must complete Video KYC.
  • Select FD Details: Choose the Tax Saver FD, enter your deposit amount (up to ₹1.5 lakh), and confirm the mandatory 5-year lock-in period.
  • Set Interest Payout Option: Decide whether you want interest credited monthly, quarterly, annually, or at maturity.
  • Fund & Confirm: Make the payment from your linked savings account. Once successful, you’ll get an FD receipt via email and SMS.
  • Offline FD Booking

IndusInd Bank provides an offline application process for those who prefer in-person assistance at its branches. The following are the steps to apply offline:

  • Visit a Branch: Locate your nearest IndusInd Bank branch.
  • Obtain Application Form: Request the bank representative's Tax Saving FD application form.
  • Provide KYC Documents: Submit your Aadhaar card, PAN card, and proof of address for verification.
  • Fill Out the Form: Complete the application with accurate personal and FD details. 
  • Deposit Funds: Pay the investment amount via cheque, demand draft, or transfer from your savings account. 
  • Receive FD Receipt: Collect the FD receipt as proof of your investment after processing.

Who Should Consider IndusInd Bank Tax Saving FD?

IndusInd Bank Tax Saving FD is an attractive option for investors seeking to reduce their taxable income while ensuring capital safety. The following categories of customers may find this investment beneficial:

  • Tax-Saving Investors: Depositors aiming to lower their taxable income can invest up to ₹1.5 lakh in a Tax Saving FD and claim deductions under Section 80C of the Income Tax Act, 1961. 
  • Resident Individuals and HUFs: Only resident individuals and Hindu Undivided Families (HUFs) can invest in these FDs. 
  • Risk-Averse Investors: Investors who prefer stable returns instead of market-linked options may find these FDs suitable.
  • Long-Term Savers: Investors with a 5-year investment horizon can leverage the mandatory lock-in period to meet long-term financial goals. 

TDS on IndusInd Bank Tax Saving FD

IndusInd Bank Tax Saving FD offers tax benefits under Section 80C of the Income Tax Act, allowing investors to claim deductions up to ₹1.5 lakh. However, interest earned on these FDs is subject to Tax Deducted at Source (TDS). It applies to individuals below 60 years old if the total interest income exceeds ₹50,000 in a financial year. 

For senior citizens aged 60 years and above, the exemption limit is ₹1,00,000. If a customer’s total income is below the taxable limit, they can submit Form 15G and Form 15H (for senior citizens) to the bank, declaring that their income is below the taxable threshold. This will help in avoiding TDS deductions on your FD interest. Ensure that your PAN details are updated with the bank to facilitate proper TDS processing.

Key Takeaways

IndusInd Bank Tax Saver FD offers a secure investment avenue with dual benefits of tax savings and guaranteed returns. Under Section 80C of the Income Tax Act, investors can claim a deduction of up to ₹1.5 lakh per financial year, reducing their taxable income. The 5-year lock-in period encourages regular saving, and the interest earned is taxed according to the investor’s income tax slab. Regular citizens may get rate of interest of tax-saving FD at 6.65% and 7.15% per annum for senior citizens. Investors can choose from various interest payout options, including monthly, quarterly, half-yearly, yearly, or at maturity, providing flexibility to meet individual financial needs.

FAQs

  • What is the minimum investment for IndusInd Bank Tax Saving FD?

    The minimum investment for an IndusInd Bank Tax Saving FD is ₹10,000. 
  • Can I withdraw my IndusInd Bank Tax Saver FD before 5 years?

    No, the IndusInd Bank Tax Saver FD has a mandatory 5-year lock-in period. Premature withdrawals are not permitted during this tenure. 
  • Is the interest earned on IndusInd Bank Tax Saving FD taxable?

    Yes, the interest earned on an IndusInd Bank Tax Saver FD is taxable per your income tax slab. TDS is applicable if the interest income exceeds ₹50,000 for regular and ₹1,00,000 in a financial year. 
  • Can senior citizens get higher Tax Saving FD Interest Rates at IndusInd Bank?

    Yes, senior citizens (aged 60 and above) are eligible for higher FD interest rates than regular investors. Senior citizens receive 0.5% additional interest compared to regular investors. 
  • What is the difference between a regular Fixed Deposit (FD) and a Tax Saver FD?

    A regular FD offers flexible tenure and guaranteed interest without tax benefits. In contrast, a Tax Saver FD has a mandatory 5-year lock-in period, and cannot be withdrawn early. A Tax Saver FD provides tax benefits also under Section 80C of the Income Tax Act, making it suitable for long-term, disciplined savings.

˜Top plans are based on annualized premium, for bookings made through https://www.policybazaar.com in FY 25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
* Applicable for Titanium variant of Max Life Smart Fixed-return Digital (Premium payment of 5 years, Policy term of 10 years) and a healthy male of 18 years old paying Rs. 30,000/- monthly (exclusive of all applicable taxes)
** Fixed deposit rate applicable for 5 year's 1 day to 10 years for investment amount less< 2 Crore ( Not for senior citizens).
*** PPF interest rate applicable for 15 years for investment amount upto 1.5 Lac
+ Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
#Discount offered by insurance company
## The Guaranteed Returns are dependent on the policy term and premium term availed along with the other variable factors. 6.9% rate of return is for an 18 years old, healthy male for a policy term of 20 years and premium term of 10 years with Rs.10,000 monthly installment premium. All plans listed here are of insurance companies’ funds.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

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