Federal Bank Tax Saver FD Scheme

What is a Federal Bank Tax Saver FD Scheme?

As the name suggests, a tax saver fixed deposit scheme helps one to apply for deductions in payable tax as per the norms of Section 80C of the Income Tax Act 1961. There are two things associated with a Federal Bank tax saver FD scheme. Firstly, customers are assured of interest-bearing returns. Secondly, there will be a mandatory lock-in period of 5 years. This means a customer’s investment must stay with the bank for a minimum of 5 years. There are no provisions to take premature withdrawal without facing hefty penalty charges.

Furthermore, adding to the list of benefits, most banks offer specialised rates for senior citizens, making all the more lucrative choices for the said category.

Its assured return policy makes a fixed deposit scheme popular among investors. Customers put their monetary capital in lumpsum, and the interest-bearing scheme contributes to appreciation over time. Fixed Deposit Interest rates are immune to market dynamics creating a stable investment option for customers.

Of the various banks that offer a fixed deposit scheme, Federal Bank is one of the prime financial institutions to provide attractive and lucrative interest rates on investment. In this article, read about a Federal Bank Tax Saver FD scheme and how one can benefit from the same.

Eligibility Criteria

If one is wondering who can apply for a Federal Bank Tax Saver FD scheme, the good news is that there aren’t many parameters to be eligible for the same. It is an easy process to apply for a tax saver deposit. However, certain minimal parameters are set to ensure that there isn’t anyone misusing a bank’s services out of the blue. It will be beneficial for the applicants to know these basic requirements beforehand. The list below explores the eligibility criteria for purchasing a Federal Bank Tax Saver FD plan.

• The applicant must be a citizen of India. In the case of non-resident citizens, they must possess valid NRI cards.
• Non-individuals such as companies, partnership firms, Hindu Undivided families, etc., can apply for the Federal Bank Tax Saver FD.
• Every applicant must be able to produce all the KYC documents along with miscellaneous documents upon request.
• Also, customers are expected to be at least 18 or older.

Documents Required

Before applying for a Federal Bank Tax Saver FD scheme, applicants must keep in handy the following documents, without which the applications are liable to be rejected. These documents are necessary to authenticate the customer’s identity, as banks must ensure that the customers are who they claim to be. Below is a list of documents applicants must produce while applying for the Federal Bank Tax Saver FD.

• Permanent Account Number or PAN is a must document.
• Aadhaar Card
• Driving licence
• Voter’s card
• Passport
• Government-issued identity cards
• Electricity bill or water bill with name and residence address
• Passport-sized photographs.

Key Attractions

Not only is the Federal Bank Tax Saver FD scheme a convenient and risk-free financial product to invest in, but it also gives the customers a fair opportunity to grow their financial capital over time. There are tax benefits associated with the investment plan. Other than that, some characteristics that make this scheme a lucrative option for customers are explored below.

• Customers are assured of returns. There will be a lock-in period of 5 years where wealth will grow as per the interest rate applied.
• Even though tax deductions are applicable on the interest earned, customers can claim returns while filing income tax returns.
• Customers will be able to claim up to INR 1,50,000 tax returns.
• There are provisions to apply for a nomination facility in case of mishaps to the account holder.
• A low minimum deposit allows the customers to pitch in the amount of investment they can afford.
• The Federal Bank Tax Saver FD scheme applies special rates for senior citizens.

Features & Benefits

Federal Bank Tax Saver FD schemes come with various features and benefits, making it an easy pick for customers. The convenient and risk-free plan by Federal Bank incorporates the following features.

• Low minimum balance requirement. Customers can deposit a minimum amount of INR 100 and increase the investment in the multiple of INR 100.
• There is an annual investment limit of INR 1,50,000.
• There are no provisions to apply for a loan on investment
• A Lock-in period of 5 years is mandatory. Premature withdrawal is not permitted.
• Claimable tax benefits are as per Section 80C of the Income Tax Act 1961.
• In joint account scenarios, only the primary account holder is the tax-deductible beneficiary.
• Customers will be required to submit their PAN card copies mandatorily.
• The federal bank provides quality, top-notch customer service, which can be available whenever required.

How to Apply for Federal Bank Tax Saver FD

The Federal bank Tax Saver scheme application procedure is easy and hassle-free. Interested applicants can follow the steps below to create their Federal Bank Tax Saver FD account.

• Go to the official website of Federal Bank.
• Under the personal section in the main menu, select the deposit option.
• Locate the Federal Bank Tax Saver FD option and click on explore
• Under the How to Open section, click on locate branch option highlighted within the text
• This will redirect you to a new window wherein you will be required to provide details pertaining to your location.
• The algorithm will narrow down the nearest available branches
• Visit the branch and set up a meeting to get your Federal Bank Tax Saver FD account initiated.

Download Federal Bank Tax Saver FD Application Form

Customers can request for a Federal Bank tax saver FD scheme by submitting an online request. The applicant can download the application form, simply fill in the required details and submit it to the nearest Federal Bank branch. They may use the search engine to locate the Federal Bank Tax Saver FD application form online or can use the link attached below.

Note that this application form applies to customers with a regular savings account open with the bank.

Federal Bank Tax Saver FD Application Form

The form will incorporate details such as the following.

• Deposit category
• Account Number
• Type of account
• Personal details such as name, account number, customer ID, etc.
• Deposit amount
• Tenure
• Payout frequency details
• Additional information for security
• PAN card details
• Acknowledgement form
• Nominee details, if applicable
• Passport-sized photographs will be handy.