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What makes the DCB Tax Saver FD a smart choice?

06 Apr 2024

A sound financial plan will involve saving money, but a smart one will make the most out of those savings. We all want to save our hard-earned money, but we must also ensure it grows steadily. Certain options like Fixed Deposit can enable this. Take the DCB Tax Saver Fixed Deposit (FD) for instance. It's a viable option that grants you the power to not just save on taxes but also enjoy attractive returns.

Talking About Tax Saver FDs

First things first, what exactly is a Tax Saver FD? It's an attractive option that's specifically designed to give you not one but two incredible benefits – tax savings and returns on your investment.

They offer you the ability to slash up to ₹1.5 lakh off your tax bill every year under Section 80C of the Income Tax Act, 1961. But here's something to remember– your money is locked in for 5 years. During this time, your principal amount is steadily working for you. Now, the interest you make from this deposit is taxable, and the FD interest rates can vary from bank to bank.

Before investing, please be clear on the Fixed Deposit rates on offer, the tenure, and the returns in store. With DCB Bank FDs, individuals and Senior Citizens can earn up to a staggering 7.90 % p.a. and 8.50 % p.a. on their Fixed Deposits.

So, if you're searching for a way to lighten your tax load while enjoying a steady return on your funds, the Tax Saver FD may well be your ticket. It's a reliable way to make your money hustle for you.

What Makes DCB Tax Saver FD the Right Choice?

If you are looking for the ultimate tax saving and fund growth strategy, then look no further than DCB Tax Saver FD, here’s why:

1. Reduced Taxation

When it comes to saving on taxes, the DCB Tax Saver FD has your back. You can claim a tax benefit of up to ₹1.5lakh in a financial year under Section 80C of the Income Tax Act, 1961. It's like having your tax shield.

2. High Interest Fixed Deposit Rates

DCB Bank offers attractive Fixed Deposit rates for long-term deposits, with rates going up to 7.90 % p.a. for deposits with a tenure of 25 months to 26 months This could be appealing for individuals looking for a long-term FD tenure. For short-term deposits (7 days to 45 days), the interest rates are 3.75 % p.a. These rates are attractive for those looking for a shorter FD duration.

Special Interest Rate for Senior Citizens: DCB Bank provides a higher FD interest rate for Senior Citizens across all tenures. This is a noteworthy benefit for older individuals looking for stable options with better returns.

3. Tailored for Your Convenience

With DCB Tax Saver FD, you have the freedom to choose between quarterly compounding or quarterly interest payout. It's all about making the funds work for you, not the other way around.

4. Commit to the Future

With a default tenure of 5 years, DCB Tax Saver FD encourages you to stay committed to your tax-saving goals. It's a strategic move to ensure you maximize your tax benefits, emphasizing the importance of long-term financial planning. A sure-shot way to save and grow your money.

5. Lock-in for Success

The 'no premature encashment' rule ensures that your tax-saving funds remains untouched until the end of the lock-in period. This discipline ensures you stick to your financial plan and reap the rewards at the right time.

6. Accessibility to All

You don't need a mountain of money to start your journey with a DCB Tax Saver FD. You can start the FD with an amount as low as ₹10,000.

7. Your Money, Your Control

Tax Saver FDs cannot be pledged as security to avail of loans. It ensures your tax-saving funds remains untouched and dedicated to its intended purpose - saving you money on taxes.Tax Deduction at Source (TDS) may seem confusing, but it's an integral part of the tax-saving process. Embrace it, as it ensures you stay on the right track while enjoying the benefits of your funds.

The interest you earn on funds, including your FD, is taxable. If you earn more than a certain amount in interest on your FD, a 10% tax will be deducted before you receive the amount.You’ll also need to fill out certain forms like 15G or Form 15H at the beginning of the financial year to claim tax exemption on your Tax-Saving Fixed Deposit.

In a Nutshell

In the world of money and finance, which is vast and always shifting, it can be tricky to find an option that's reliable for your money, helps with taxes, and is flexible.

The DCB Tax Saver FD, with its remarkable features and great FD interest rates offers an avenue for taxpayers looking to optimize their financial health. It's a smart financial decision that ensures you get more out of your money while it grows.

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Information on the website is for informational purposes only and does not constitute financial advice. Readers are advised to consult financial professionals for personalized advice before making decisions. The information on this blog is subject to change without notice and may become obsolete. DCB Bank reserves the right to modify, update, or remove content at any time. Savings Account and Fixed Deposit Interest rates are subject to change without prior notice. DCB Bank shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decision based on the contents and information mentioned in this blog. By accessing and using this blog, users agree to adhere to these terms and conditions. To read the complete disclaimer of DCB Bank, please visit: https://www.dcbbank.com/disclaimer

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