Bank Term Deposit Scheme

The Central Government has notified the Bank Term Deposit Scheme under Section 80C of the Income Tax Act. Investment in this Bank Deposit Scheme shall be eligible for exemption under Section 80C for a maximum of Rs.one lakh.
Who can invest in Bank Term Deposit Scheme ?

• Any individual.

• Hindu undivided family(HUF) in his own/Karta’s name (single holder type) or jointly with another adult/minor individual (joint holder type) on either or survivor basis.

How to apply

• The investor should apply to the bank, in the prescribed form.

Amount of Investment

• Minimum sum of Rs. 100 or in multiples thereof subject to a maximum of Rs. 1 lakh, during a financial year.

Nomination

• Available on all term deposits, except those made/held by or on behalf of a minor.

Interest

• The rate of interest shall be fixed by the bank from time to time, and shall be payable monthly/quarterly, or in lumpsum on maturity.

Maturity Period

• The term deposit shall mature on expiry of five years from the date of receipt

Premature encashment

• Not permitted. However, in the event of death of the first holder, the other joint holder may encash the deposit before its maturity.

Transferability

• A term deposit may be transfer from one branch to another of the concerned bank on an application by the investor transfer or deposit from one bank to another shall not be permitted.

Income Tax Benefits:

• Upto maximum of Rs. 1,00,000 alongwith other investment i.e. LIC, PPF, ULIP, NSC etc.

Look Out these two very good plans given below:

Bank term deposit HSBC
Term deposit interest rates ING

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