Check out FD schemes for saving income tax : ET

Fixed deposits offered by banks have been the favourite traditional saving and investment instrument for Indians. In
the union budget of 2006, the long-term bank deposits were made liable for the tax benefit under section 80C of
Income Tax Act, 1961.

It means investments up to Rs.1,00,000 in Bank FD at least for 5 years qualify for deduction from the gross total
income for purpose of tax calculations.

On the backdrop of high interest rate last year, banks were flooded with deposits under this scheme. Now, it is a time
to make tax planning for the financial year 2009-10 .

In view of this we bring out a ready reckoner on the tax savings deposit schemes offered by leading commercial
banks.

Deposit Amount (Per financial year)

Minimum: 1000
Maximum: 1,00,000

Tenure

Minimum: 5 years
Maximum: 10 years

Mode of Payment: Lump sum at the time of maturity or quaterly

Current Deposit rate (% per annum): 7.25 (Note: Additional 0.25% if the tenure of deposit is
8 years and up to 10 years)

Deposit Amount (Per financial year)

Minimum: 10, 000
Maximum: 1,00,000

Tenure

Minimum: 5 years
Maximum: 10 years

Mode of Payment: Lump sum at the time of maturity or quaterly

Current Deposit rate (% per annum): 7.00

Deposit Amount (Per financial year)

Minimum: 5, 000
Maximum: 1,00,000

Tenure

Minimum: 5 years
Maximum: 10 years

Mode of Payment:

Maximum: 1,00,000

Tenure

Minimum: 5 years
Maximum: 10 years

Mode of Payment: Lump sum at the time of maturity or quaterly or monthly

Current Deposit rate (% per annum): 6.75

Deposit Amount (Per financial year)

Minimum: 100
Maximum: 1,00,000

Tenure

Minimum: 5 years
Maximum: 10 years

Mode of Payment: Lump sum at the time of maturity or quaterly or monthly

Current Deposit rate (% per annum): 7.00


Deposit Amount (Per financial year)

Minimum: 10, 000
Maximum: 1,00,000

Tenure: 5 years

Mode of Payment: Lump sum at the time of maturity or quaterly or monthly

Current Deposit rate (% per annum): 7.75



Deposit Amount (Per financial year)

Minimum: 100
Maximum: 1,00,000

Tenure: 5 years

Mode of Payment: Quaterly or monthly

Current Deposit rate (% per annum): 6.00

Deposit Amount (Per financial year)

Minimum: 100
Maximum: 1,00,000

Tenure: At least 5 years

Mode of Payment: Lump sum at the time of maturity or quaterly

Current Deposit rate (% per annum): 7.00