Tax Saver Deposit

• Such FDs come under Bank Term Deposit Scheme, 2006
• FD will be for a fixed period of not less than 5 years
• Investment: Min. 100/-, Max. 1,50,000/-
• Applicable for: Individual and HUF
• Holding: Single or Joint
• 80C deduction within overall ceiling of 1,50,000/-
• Deduction u/s 80C(2)(xxi) for Bank
• 80C Deduction: Only to first holder
• Interest: Taxable and TDS deductible
• Deduction also available u/s 80C(2)(xxiv) for Post Office 5 year FD

Yes, the deduction u/s. 80C by investment in tax saving FD is also available to senior citizens.

Deduction u/s. 80 TTB  is Rs.40,000/- for FY 2018-19, which includes interest earned from bank & postal FDs.