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Tax Saving FD

our very popular tax saving scheme
Tax Saving FD

Learn more about the different Tax Saving Deposit Schemes for all from TMB.

In accordance with the amendment to Section 80C (2) of the Income Tax Act 1961, bank term deposit qualifies for Section 80C deduction from assessment year 2007-08 onwards.

Under the deposit scheme “TMB TSD (Malligai)” the customers can withdraw interest monthly, quarterly, half yearly and annual basis.

Under the deposit scheme “TMB TSD (Mullai)” the interest will be paid at the time of maturity of deposit with cumulative interest.

Eligibility
Any Individual and HUF - PAN Number mandatory.
Minor
The deposit can be opened in the name of minor also.
Joint Deposit
Joint deposits are permitted (including Either or Survivor / Former or Survivor). The tax benefit under section 80C goes to the first holder only.
Min./Max. Amount
Minimum Rs. 100.00 and thereafter in multiples of Rs. 100.00 subject to a maximum of Rs. 1,50,000.00.
Period
5 Years to 10 Years.
Interest
Monthly interest, quarterly interest, half-yearly interest (quarterly compounded), annual interest (quarterly compounded) and Cumulative interest - based on investor needs.
Taxation
Interest amount is taxable. TDS is applicable as per the existing norms to Term Deposits.
Premature Closure
Premature Closure is NOT allowed.
Deposit Receipt
Deposit Receipt will be issued with the depositor’s / assesse’s name, address, PAN and his / her signature. It will be governed by the “Bank Term Deposit Scheme”, 2006 of the Government of India Notification No. 203 / 2006 dated 28th Jul 2006 or its subsequent amendments.
Transfer
The deposit is not transferable. However, the deposits are transferable from one branch to another branch in the same name(s).
KYC Compliance
Usual KYC compliance as applicable to term deposits.
Nomination
Nomination facility is available. In the event of the death of the depositor the nominee can encash either before or after the maturity date.
Payment to Legal heirs
If no nomination is in force at the time of death of the depositor, Manager of the branch shall pay the sum due to the deceased to his legal heir's as per Banks usual procedure.
Rate of Interest
The interest rate applicable from time to time to normal domestic term deposit for a period 5 years - i.e. 5.75% presently. These revised interest rates are applicable from 06th Jul 2020. Present Domestic & Senior Citizen Deposit Rate of Interest
Loan against Deposit
Not allowed. (The term deposit shall not be pledged to secure loan or as security to any other asset).
Relaxation
Any relaxation in the scheme will be allowed as per the Notification issued by the Central Government from time to time.

“This deposit is subject to the features and terms of the CBDT Notification No. 203 / 2006 dated 28th Jul 2006 and / or its amendments, if any, from time to time notified by the Government of India”.

Deposit Rate of Interest:

Deposit Maturity Calculator:

Since Malligai & Mullai Tax Saver Deposits basically piggy back on normal / muthukuvial fixed deposit with a 5 year lock in, please refer these two calculators.

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