Canara Bank Tax Saving FD Scheme
The Canara Bank Tax saving tenure ranges from min to max 5 Year 1 Months 7 Days . The ROI ranges from 5.50% to 5.50 % for the general public. The lock-in period for this scheme is 5 Year
Canara Bank Tax saving Scheme for amount below ₹ 1.5 L
The rate of interest for deposited amount less than ₹ 1.5 L is as below
Interest Rate for General Public (p.a.)
Interest Rates for Senior Citizens (p.a.)
|Upto 5 Year 1 Months 7 Days|
Key features of Canara Bank Tax saving Scheme
Summary of Canara Bank Tax saving Scheme features :
|Mutual Fund Schemes|
|Loan Against FD|
Upto 5 Year 1 Months 7 Days
5.50% to 5.50 %
6.00% to 6.00 %
*Interest rates are subject to change at the discretion of the bank. These Interest rates are with effect from 10 November 2021.
It is a distinct fixed deposit program whereby the investor receives a tax reduction in the return of the deposited amount. To claim the tax benefit, investors can park an amount of INR One lakh fifty thousand at maximum. Tax saving deposits come with a lock-in tenure of five years.
Additionally, you cannot withdraw the amount throughout the investment period. Since tax-saving FDs are seen as a risk-free investment instrument contrary to other options, thus people pin their hopes on tax-saving FDs. Tax Saver FD Canara Bank is also a great choice for anyone seeking a short lock-in period and expecting guaranteed profits.
Investors rely on fixed deposit schemes because of their guaranteed return policy. Customers invest their money in lump sums, and the interest-bearing plan promotes growth over time. Customers have a stable investment option through fixed deposits, as the interest rates are unaffected by market fluctuations.
Canara Bank is one of the major banks that provides attractive interest rates on investments among the numerous banks that offer a tax saver fixed deposit scheme. Keep reading to get acquainted with the Canara Bank Tax Saver FD and how one might take advantage of it.
Tax Saver FD Canara Bank: Eligibility Criteria
Investors can open a Tax Saver account with Canara Bank and receive tax advantages of up to INR 1.5 lakhs. To begin investing in this scheme, one must familiarise themselves with the requirements. To be qualified to invest in Canara Bank Tax Saver FDs, you must fall into one of the below categories.
- All Indian residents with valid residence proof.
- Individuals belonging to HUF (Hindu undivided family).
- A legal guardian accompanied minor.
Documents Required to Open a Tax Saver FD Canara Bank
The following documentation must be on hand before applying for a Tax Saver FD with Canara Bank. If you fail to provide the preset documentation, the bank may deny your application to open a tax saver FD account. Canara Bank counts on the basic documents to verify the consumer's identity.
One of the essential documents that an investor must provide is the PAN Card. In terms of identity and address proof, the applicant will have to provide Aadhaar Card, Driving Licence, Voter ID Card, Passport, ID card issued by the Government, and Utility Bills ( telephone bill, electricity bill).
Additionally, if you decide to open a Canara Bank Tax Saver FD through offline mode, bank executives will ask for two passport-sized photographs.
Interest Earned on Tax Saver FD Canara Bank
As the name says, tax saver FD allows applicants to save huge in terms of tax benefits. At the same time, the applicants get returns on the deposited amount as the amount stays invested for half a decade.
- Deposit amount in tax saver FD at a fixed interest rate. It will remain static throughout the investment tenure.
- Canara Bank Tax Saver FD offers an interest rate of 5.25% to general citizens, whereas the interest rate for senior citizens clocks at 5.75%.
- Senior citizens receive greater interest rates, ranging from 0.25 to 1% higher than those offered to ordinary tax-saving FDs.
- Your tax liability for interest on the deposited principal investment amount is 100%. Your income will be increased by interest and further taxed at the appropriate rates, i.e. income bracket.
- Quarterly compounding is used for computing interest on the tax-saver FDs.
- If the interest secured exceeds INR 40,000 (INR 50,000 in the case of senior citizens) for the given fiscal year, a TDS, or tax, would be deducted at source.
Features & Benefits of Tax Saver FD Canara Bank
Canara Bank Tax Saver FD schemes have several features, making them an ideal saving instrument for depositors. The tax saver fixed deposit scheme by Canara Bank offers the given features.
- Tax Saver FD Canara Bank comes with a lock-in tenure of five-year.
- Individuals can make a tax rebate of INR 1,50,000 for the fiscal year.
- To open a tax saver FD account with Canara Bank, initially, you will have to go through the KYC process.
- Tax rebate claims are accepted for individuals, HUF, and NRIs.
- You can invest between INR 100 (minimum) and INR 1,50,000 (maximum) in Canara Bank Tax Saver FDs.
- Interest earned through tax saver FD Canara Bank is subject to taxation.
- Allows individuals to assign a nominee to the FD account.
- A TDS will be deducted from the interest generated at the source.
- The FD account holder cannot withdraw the deposited account before maturity, which is five years in the case of tax-saver FDs.
- Get the opportunity to earn returns in terms of interest.
- There is no option for a loan against a tax-saving fixed deposit.
- You can open a tax saver deposit account singly or jointly.
TDS on Canara Bank Tax Saver FD Scheme
TDS is applied to interest generated on Canara bank's tax-saving fixed deposits. When interest payments total more than INR 40,000 for general citizens and INR 50,000 in the case of senior citizens for the given fiscal year, TDS is applied at a rate of 10%. If an investor's PAN is not readily available, Tax Deducted at Source will be withheld at an increased rate of 20%.
You can file a claim through Form 15-G or through Form 15-H (in the case of senior citizens) to avoid TDS deduction. This is applicable when you fall in the income slab below the taxable threshold. When filing the income tax returns for the previous fiscal year, you can request a refund of the greater TDS that the bank has taken from your account.
How to Apply for Canara Bank Tax Saving FD
To offer the utmost customer satisfaction, Canara Banks offers tax saver FDs. Individuals can apply for the Canara Bank Tax Saver FD through the official website or by making an in-person visit to the nearest bank branch. It is totally up to you whether you want to proceed with the online or offline procedure.
To apply for Canara Bank Tax Saving FD through the official website, follow the mentioned steps:
- Visit the official Canara Bank website.
- Click on personal banking, and a dropdown will occur.
- From the dropdown, choose the Savings & Deposits option.
- You will get redirected to another page containing several fixed deposit schemes.
- Select Canara Tax Saver Scheme
- The page will display vital information associated with the tax savings scheme.
Go through the information and open your Tax Saver FD account to start investing.
To open a tax saver FD account through offline mode, visit the nearest bank branch along with the requisite set of documents. Collect the form, fill it and submit the same with the documents.
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What is Canara Tax saving FD?
Canara Bank Tax Saving FD scheme is a prominent financial product where individuals can park their money with a lock-in period of five years and enjoy tax benefits. However, at maximum, you can claim an amount of INR 1,50,000.
Is it good to invest in Canara Bank Tax saving FD?
Canara Bank is one of the major Indian banks with a large customer base. It is highly known for top-notch financial services, attractive interest rates and utmost customer satisfaction. Investing in Canara Bank tax saving FD is good because it is a two-in-one deal. You get interested in the deposited amount, and at the same time, you can claim tax deductions.
What is the minimum tenure for Canara Bank Tax saving FD?
Canara Bank Tax saving FDs come with a minimum lock-in period of five years.