Indian Overseas Bank Tax Saving FD
The Indian Overseas Bank Tax saving tenure ranges from min to max 5 Year 1 Months 7 Days . The ROI ranges from 6.50% to 6.50 % for the general public. The lock-in period for this scheme is 5 Year
Indian Overseas Bank Tax saving Scheme for amount ranging from ₹ 10,000 to ₹ 1.5 L
The rate of interest for deposited amount ranging from ₹ 10,000 to ₹ 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 Indian Overseas Bank Tax saving Scheme
Summary of Indian Overseas Bank Tax saving Scheme features :
|Mutual Fund Schemes
|Loan Against FD
Upto 5 Year 1 Months 7 Days
6.50% to 6.50 %
7.00% to 7.00 %
Rs.10,000 to Rs.1,50000
*Interest rates are subject to change at the discretion of the bank. These Interest rates are with effect from 10 November 2021.
Indian Overseas Bank Tax Saving FD offers investors the perfect way to save hard-earned money while reducing tax liability. Tax-saving fixed deposits come as a game changer when individuals look for a hassle-free investment that guarantees high returns and provides tax benefits. Indian Overseas Bank Fixed Deposits are a trusted and secure investment option that protects your savings while helping you to grow them. Say goodbye to the stress of tax filing and hello to a brighter financial future with Indian Overseas Bank Tax Saving FD!
What is Indian Overseas Bank Tax Saving FD?
Indian Overseas Bank Tax Saving Fixed Deposit is a type of fixed deposit offered by Indian Overseas Bank (IOB) that provides tax benefits under Section 80C of the Income Tax Act, 1961. The minimum investment period for this FD is five years, and the maximum amount eligible for tax deduction is Rs. 1.5 lakh per financial year. The interest rates for this FD are usually higher than regular fixed deposits, making it an attractive investment option for individuals seeking to save tax and earn higher returns on their investments.
Indian Overseas Bank Tax Saving FD: Eligibility Criteria
To be eligible for Indian Overseas Bank's Tax Saving Fixed Deposit scheme, an individual must be a resident of India and have a valid Permanent Account Number (PAN) card. The scheme is open to both individuals and HUFs who can invest a minimum of INR 1,000 and a maximum of INR 1.5 lakh per financial year. The investment in the scheme must be made for a minimum tenure of five years, and the deposit cannot be prematurely withdrawn.
Documents Required for Investing in Indian Overseas Bank Tax Saving FD
The documents required to invest in Indian Overseas Bank Tax Saving Fixed Deposit are:
- Proof of identity - This can be any government-issued document such as a PAN card, Aadhaar card, Passport, Voter ID card, etc.
- Proof of address - Any government-issued document, such as an Aadhaar card, Passport, Voter ID card, Driving License, etc., can be used as proof of address.
- Two passport-size photographs - Two recent passport-size photographs of the account holder(s) are required.
- PAN card - Permanent Account Number (PAN) card is mandatory for investing in a tax-saving fixed deposit.
- Declaration of nomination - A nomination declaration must be submitted if the investor wishes to nominate someone for the fixed deposit.
The key attractions of Indian Overseas Bank Tax Saving Fixed Deposit are:
- Tax Benefits: The investment made in this fixed deposit is eligible for a tax deduction as per Section 80C of the Income Tax Act, 1961. It allows investors to save tax on their investments.
- Guaranteed Returns: The fixed deposit offers guaranteed returns on the investment, providing individuals with a secure investment option.
- Higher Interest Rates: The interest rates offered on tax-saving fixed deposits are usually higher than regular fixed deposits, making it an attractive investment option.
- Flexibility: Investors can choose their investment tenure at their convenience, with a five-year minimum investment period.
- Low Risk: Tax-saving fixed deposits are considered low-risk investments, as the returns are guaranteed, and the bank backs the investment.
- Nomination Facility: The account holder can nominate someone for the fixed deposit in case of any unfortunate event.
Features and Benefits
With Indian Overseas Bank Tax Saving FD, an investor can expect the following features:
- Account Type: Single or Joint
- Amount: Minimum Rs.10,000 and Maximum Rs.1,50,000 (only one individual/deposit account in a year)
- Rate of Interest: 7.75% for deposits between Rs.10,000 to Rs.1 lac, 0.5% extra for senior citizens
- Period: Minimum 60 months and Maximum 120 months
- TDS: The first holder of a joint account or single account depositor is exempted under Section 80C of the Income Tax Act for all investments with a minimum deposit of Rs.1.5 lacs
- Loan against IOB Tax Saving Scheme: Not available
- Nomination: Available under the rules for nomination, not accepted for a deposit held by or held for a minor
- Repayment of Deposit: Premature withdrawal after completing 5 years, repayable on or after the maturity date.
How to Apply for Indian Overseas Bank Tax Saving FD?
To apply for Indian Overseas Bank Tax Saving Fixed Deposit, follow the below steps:
- Make an in-person visit to the nearest bank branch or access their website.
- Obtain the application form for the tax-saving fixed deposit.
- Fill in the required details in the application form, such as the investment amount, tenure, mode of deposit, and other personal details.
- Attach the necessary documents, such as proof of identity, address, PAN card, passport-size photographs, and nomination form (if applicable).
- Submit the application form and documents to the bank representative.
- Once the application is processed, deposit the investment amount in the account through a cheque or online transfer.
- The fixed deposit receipt will be generated with the investment details and the applicable interest rate.
- The account holder can view the details of the tax-saving fixed deposit through the bank's net banking facility or by visiting the branch.
Alternatively, investors can apply for Indian Overseas Bank Tax Saving Fixed Deposit online through the bank's website or mobile banking application.
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Which bank is best for tax-saving FD?
Several banks in India offer tax-saving fixed deposits. The best bank for tax-saving FDs depends on factors such as interest rates, reputation, convenience, and customer service. It is advisable to compare the interest rates and other features before investing in a tax-saving FD is advisable.
What is the highest fixed deposit interest rate for Indian Overseas Bank?
The highest fixed deposit interest rate for Indian Overseas Bank depends on various factors such as the tenure of the fixed deposit, investment amount, and prevailing market conditions. The highest fixed deposit interest rate offered by Indian Overseas Bank was 6.50% for 5 to 10 years.
In how many years will FD double in Indian Overseas Bank?
To calculate the number of years it takes for an FD to double in the Indian Overseas Bank, you can use the Rule of 72. The Rule of 72 is a simple mathematical formula that estimates the number of years it takes to double an investment based on the annual rate of return. To use the Rule of 72, divide the number 72 by the annual interest rate offered by the bank. For example, if the interest rate is 5%, it will take approximately 14.4 years for the FD to double (72/5=14.4). However, please note that the actual time it takes for an FD to double may vary based on the compounding frequency and other factors.