BENGALURU: Tax investments are on top of everybody’s priority list as we enter the month of March. NSC, PPF, ELSS, Tax Saving FDs, and Term Insurance are some of the most popular tax saving investments available out there. Out of these, Tax Saving Fixed Deposits are a popular fixed investment option started by the government in 2006 to revitalize investors’ interest in FDs. Hailed as one of the 5 most popular tax saving options, the tax saving FD gives you fixed return along with the added benefit of tax savings. Tax saving FDs can be opened in any government or private banks with the exception of cooperatives and minimum investment for the FD in as low as 100. Here is a list of five important points about tax saving fixed deposits, compiled by Economic Times that might help you in opening one.

Opening an Account

Along with individuals who are resident Indians, Hindu Undivided Families (HUFs) are also eligible to open a tax saving fixed deposit account. Opening a tax saving FD requires minimum paperwork as you just need to submit copies of your address and identify proofs with the Permanent Account Number (PAN) to open an account. You can open an account at your bank of choice and claim tax deduction up to an amount of 1.5 lakh. The account can also be transferred from one branch to another branch of the same bank. The FD account can be opened jointly as well. However, in a joint tax saving FD account, the tax benefit is available to the first account holder.

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