Can bank deduct tds on interest when it is transfered to lic

bank deducte the TDS  16000 as per the 10%

@ Jaganathan But I am immediately putting it away.

Bank will deduct the TDS. It is to be noted that it is duty to bank to deduct TDS if the interest amount exceeds of INR 10000. Kindly clarify,  have you recevied interest amount in your saving bank account if yes, how much.

Int received from Banks comes under other income   any int above 10k will attract TDS @ 10% on entire amt     and

Money paid for LIC premium is money investment u/s 80C

The two has no connections at all. 

you have to file return and consume that TDS and claim Refund.

Bank is not concerned when and where are you investing the interet amount. The TDS will be deducted.

kindly reply with answer

@ Rajesh Now I got more confused :-) but seems like your plan is cool.. can you please explain what is a term plan.. and how can I pay less premium for "SA" what is SA?

Please enlighten me Sir!

You can submit 15G/H if total income below the total income chargable to tax ie. gross income <250000, your complete amount of interest will not subject to TDS if you submit 15 G/H before due date of credit of interest either in Ac or in commuletive to FDR Ac. this is the only way by which you can exclude yourself from TDS provision 

That won't solve my purpose then :P cause I would like to obtain the amount back in case I didn't use it :P

Thanks everyone for commenting your suggestions :-)