Tax Advantage
Features
- Applicable rate of interest for 5 years
- Tax exemption of up to Rs. 1.50 lakh in a financial year, under Section 80 C of the Income Tax Act
- Minimum deposit of Rs.100 and maximum of Rs. 1.50 lakh in a financial year
- Nomination facility available
- Deposit period between 5 and 10 years
- Permanent Account Number (PAN) needed to open the account
- No premature encashment up to 5 years
- Loan against deposit facility is not allowed
- Other rules pertaining to Term Deposits applicable to this scheme as well
- Senior citizens are eligible for an additional interest rate of 0.50% p.a. for all domestic term deposits of 1 year and above except for Dhanam Tax Advantage deposits.
Eligibility
- In case of joint deposits, deduction under Sect 80C is available to first holder
- Single accounts can be opened by individuals and the Karta of a Hindu undivided family (HUF) while joint accounts can be opened by adults as well as a minor and their guardian
