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Tax-saving fixed deposit | Key Benefits of Tax Savings Fixed Deposits You Need to Know | YES BANK

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If you are a risk-averse investor and want to secure your savings in a safe investment instrument yet be able to claim tax deductions, then you should consider tax-saving fixed deposits (FDs).

Tax-saving FDs are one of the most sought-after investments options, which are secure and also offer attractive interest earnings.

What is a tax-saving fixed deposit?

A tax-saving fixed deposit is similar to a general FD where you invest your money for a lock-in period (usually five years), in return for interest earnings and security of principal amount. However, these particular FDs allow you to claim a deduction on tax on fixed deposit up to ₹1.5 lakhs under Section 80C of the Income Tax Act, 1961.

What are the key benefits of tax-saving FDs?

Fixed deposits have been the ultimate choice for the general population for decades. Essentially because FDs is a bank-based investment, regulated by the Reserve Bank of India (RBI). Moreover, assurance of principal, low-risk nature and competitive interest earnings make this a popular option.

Some key features of tax-saving fixed deposits include:

  • Higher interest-earning potential as compared to savings accounts

  • Lower risk in comparison to other equity-linked investments like ELSS

  • Highest assurance of funds

  • The considerably small lock-in period of five and ten years, as related to other tax-friendly debt investments

  • Tax exemption up to ₹1.5 lakhs under Section 80C

  • Availability of nomination feature

  • Low deposit requirement

  • Flexible interest payout options – monthly or quarterly. The choice to reinvest the sum

  • Reasonably simple, liquid and secure investment option

  • Available for all types of people, including homemakers, businessman, etc.

  • Greater interest returns for senior citizens

  • Option to open more than one tax-saving FD with the same bank

  • Available for NRIs

You can choose a public or private bank to secure your funds in a tax-saving FD.

What are the documents required for a tax-saving FD?

You will only need these documents in original to open a tax-saving FD account with any bank:

  • Identity proof including passport, driving license, Aadhar Card, etc.

  • Address proof including passport, electricity bill, telephone bills, bank statement, etc.

Tax-Saving Fixed Deposits from YES BANK

YES BANK understands your need for security, as well as your desire for higher returns and tax benefits.

Choose YES BANK’s special tax-saving FDs to be the partner in your financial journey as it offers attractive fd interest rates. Invest with YES BANK’s secure tax-saving FDs to significantly minimise your tax liability. Moreover, YES BANK allows you to maintain your funds in accessible units so that you do not have to break the deposit in case of monetary needs.

Key features of general YES BANK FDs include:

  • Utmost safety of funds

  • Competitive interest rates and even higher returns for senior citizens.

  • An auto-renewal option, allowing you to earn maximum interest by the power of compounding. The amount accrued is reinvested in the same scheme upon the expiry of the tenure.

  • The flexibility of tenure, ranging from 7 days to 10 years.

  • Enhanced liquidity with easy withdrawals and flexible interest pay options (compounded or credited).

  • An overdraft facility against the deposit at competitive rates.

  • An option to borrow up to 90% of the FD amount.

  • 24x7 easy accessibility of funds from any of YES BANK’s branches in India.

  • Simple and hassle-free account opening process with minimum documentation

You can apply for a YES BANK FD online from the comfort of your homes or by visiting your nearest branch. Trust YES BANK to provide you with the best interest earnings, the security of funds, while allowing you to save on taxes and improve savings overtime.

You can also visit YES BANK's website to know more about their Fixed Deposit, Savings Account and Personal Loan.

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