Features and Benefits
- Deposits will be accepted both under cumulative and non-cumulative options.
- Deposits will be accepted in the name of Individual/s and also in the name of Kartha of HUF.
- The scheme is for a fixed period of 5 years.
- Nomination facility is available.
Terms and Conditions
- The minimum amount that can be invested under this scheme is Rs. 100/- and multiples thereof. The maximum amount is restricted Rs. 1.50 Lakh.
- Premature Closure is not allowed as the deposit is under lock-in period for 5 years.
- In case of Joint account, the deduction under Section 80 C shall be available only to the first holder of the deposit.
- Deposit Loans are not allowed.
- TDS will be deducted at applicable rates.
- Depositors have to indicate their preference in the application form as to whether the tax shield deposit has to be placed as a cumulative deposit (or) as a fixed deposit with interest payable at monthly / quarterly intervals.