Tax Saving Fixed Deposit FAQs
Tax Saving Fixed Deposit
What are the interest rates for Tax Saver Fixed Deposits?
Tax Saver Fixed Deposits have fixed interest rates that remain the same throughout the 5 year tenure. The interest rates for Indian citizens, HUFs (Hindu Undivided Families) and NRIs vary. Senior citizens are offered higher interest rates. The interest is taxable, deducted at source and added to the income. For current interest rates click here.
What is the interest frequency for Fixed Deposits?
Interest frequency depends on the Fixed Deposit plan. For re-investment plans, interest is paid at maturity along with the principal amount whereas for traditional FDs, interest is paid monthly, quarterly or periodically as per the customer’s preference.
What is the tenure of a Tax Saver FD?
A Tax Saver Fixed Deposit has a lock-in period of 5 years. No premature withdrawals, loans or overdraft facilities are available against Tax Saver FDs.
What happens when the Tax Saver FD matures?
When the Tax Saver FD matures, the money is credited back to the Bank Account.
What is the maximum deposit amount for an ICICI Bank Tax Saver FD?
The maximum deposit amount for an ICICI Bank Tax Saver FD is Rs 1,50,000.
Is TDS applicable on Tax Saver FDs?
As per the Income Tax Act 1961, tax is deducted at source from the interest accrued on Tax Saver FDs, wherever applicable.
What are the tax benefits that I can avail on Tax Saver Fds?
The amount invested in a Tax Saver FD is eligible for tax exemption under Section 80C. The maximum investment limit is Rs 1,50,000 per year. In case of Joint Account holders, the tax benefits are available only to the primary holder.
What are the minimum and maximum deposit limits for Tax Saver FDs?
The minimum deposit limit for a Tax Saver FD is Rs 10,000 and the maximum is Rs 1,50,000.
Who should invest in Tax Saver FDs?
Customers who wish to save tax should opt for a Tax Saver Fixed Deposit with ICICI Bank. Such FDs can be opened by Indian citizens, senior citizens, HUFs and NRIs.
Will I get a receipt for my Tax Saver Fixed Deposit?
Yes, you will get a receipt for your Tax Saver FD in a printable format within 1 working day from the date of opening the FD. For FDs opened at ICICI Bank Branches, the receipt can be collected over the counter.
You can generate your FD receipt through the following:
Internet Banking:
Log in to Internet Banking > Customer Service > Service Requests > Deposits > Generate FD Advice.
ICICI Bank Branch:
Visit any ICICI Bank Branch with your ID proof. To locate the nearest ICICI Bank Branch click here.
How can I open an ICICI Bank Tax Saver FD?
You can open a Tax Saver FD with ICICI Bank through any of the following channels:
Internet Banking
Please click here to open your FD through Internet Banking
iMobile Pay:
Log in to ICICI Bank iMobile Pay > Click on the ‘Account & Deposits’ icon > Click on Deposits > Click on ‘Open FD’ > Submit.
Customer Care:
Contact our Customer Care on 1800 1080 between 7:00 a.m. and 9:00 p.m. from your registered mobile number.
ICICI Bank Branch:
To locate the nearest ICICI Bank Branch, visit http://maps.icicibank.com/mobile
What is the interest frequency for Tax Saver FDs?
For traditional schemes, the interest on your Tax Saver FD is credited to your Savings Account on a monthly basis or on a quarterly basis. For re-investment schemes, the interest is compounded on the principal amount. This interest accrual takes place on a quarterly basis but is credited to your account on a monthly basis.
What is the minimum deposit amount required for opening an ICICI Bank Tax Saver FD?
The minimum amount required for opening an ICICI Bank Tax Saver FD is Rs 10,000.
Do senior citizens get extra benefits on Tax Saver FDs?
Yes, senior citizens get extra benefits in the form of higher interest rates on Tax Saver FDs. Please click here for the current interest rates.
Is the auto renewal facility available for Tax Saver FDs?
As per regulatory guidelines, auto renewal facility is not available for Tax Saver FDs.
Can I obtain a loan from ICICI Bank against my FD?
As per regulatory guidelines, the facility to avail a loan against your Fixed Deposit is not available for a Tax Saver FD.
Is the option for premature withdrawal available for Tax Saver FDs?
As per regulatory guidelines, premature withdrawal is not available for Tax Saver Fds.
For FDs that have been opened jointly, will the benefits be extended to both the account holders?
No. For FD Accounts opened jointly, the tax deduction benefits are available only to the primary account holder.
What are some other benefits available on Tax Saver FDs?
Tax Saver Fixed Deposits offer a nomination facility as well. The FD amount can also be transferred from one Bank Branch to another.
What are the nomination facilities available for Tax Saver FDs?
Customers can choose someone from their family as their nominee. Nominee details are registered against the Customer ID of the depositor. In situations where the depositor wants a different nominee, he/ she can specify the same in writing.
If the customer does not have a PAN Card, can he/ she still collect Form 60/61?
No. Customers have to submit their PAN Card details to collect Form 60/61.
How can I close an ICICI Bank Tax Saver FD?
It’s important to know that you cannot close your Tax Saver FD because it comes with a lock-in period of 5 years. It cannot be closed before the tenure of 5 years and there is no option for premature withdrawals. After completion of the 5-year tenure, you can close the FD using iMobile or Internet Banking or by visiting any ICICI Bank Branch.