Tax-saving fixed deposits are a type of fixed deposits on which tax deduction can be claimed on the investment made.
Investing in tax-saving FDs is a good option to save tax. They offer a higher deposit rate than ordinary savings account and also allow for tax deduction benefits.
Tax-saving FDs come with a maturity period of five years.
Individuals and Hindu Undivided Families (HUFs) can open a tax-saving FD at any private or public sector bank. Even post office time deposits of 5 years qualify as tax-saving FDs.
Compiled by Syed Muskan