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Income Tax Return 2024: Three Tax-Saving Investment Options For HDFC Bank FDs

<p>Investing in tax-saving Fixed Deposits (FDs) is one of the most popular solutions for investors wishing to take advantage of the advantages under Section 80C of the Income Tax Act, 1961. Because they provide a higher return than savings accounts and are more safe, FDs are a popular choice among investors.</p>
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<p>Additionally, a few of top banks provide FDs with the added advantage of tax savings and better yields. In comparison to capital market instruments or equity-linked products, tax-saving fixed deposits (FDs) are also less hazardous. It is vital to acknowledge that a number of tax deductions and exemptions, such as the 80C investments, were exclusively accessible under the previous tax system.</p>
<p>The new tax system, which is the default as of FY24, does not allow for the advantages of Section 80C. In addition to tax advantages, a lot of banks provide elderly people with FDs of different tenures better interest rates.</p>
<p>If the bank you choose to start a tax-saving FD account with does not require you to open a savings account, you may open an account with them instead of the bank where you already have one.</p>
<p>Initially, you will need to finish the know-your-customer (KYC) process. You need to provide self-attested copies of your ID proof (PAN), proof of address (passport, driver’s license, etc.), and passport-sized photos in order to complete the KYC procedure. Bank representatives have the option to check the original paperwork before accepting the KYC form.</p>
<p>The biggest private sector lender in India, HDFC Bank, has introduced tax-saving FDs that may help you save even more money if you’re searching for last-minute ways to lower your income tax burden.</p>
<p><strong>How To Open Tax-Saving FDs At HDFC Bank</strong></p>
<p>If you already have a bank account, you may establish a fixed deposit by using your NetBanking account or by visiting the nearest branch, according to HDFC Bank. In case you already have an account with HDFC Bank, here’s how to create a fixed deposit account.</p>
<p><strong>Step 1:</strong> Access your account using NetBanking.</p>
<p><strong>Step 2:</strong> In the Transact section, choose Open Fixed Deposits.</p>
<p><strong>Step 3:</strong> Select the branch, indicate a candidate, input the tenure and amount, click proceed, and finally click confirm. After that, downloading the fixed deposit advice—which functions as a deposit receipt—is simple.</p>
<p><strong>How to Register for a Fixed Deposit at Any HDFC Bank Location</strong></p>
<p>Download the FD application form in advance of visiting the bank if you already have an HDFC Bank account and would want to start an FD at the closest branch. Fill out the form completely, and provide photocopies of your KYC documentation. For KYC verification, you may also need to bring the original paperwork to the bank.</p>
<p>For its tax-saving FDs, HDFC Bank provides interest rates as high as 7.75%. It’s crucial to remember that tax-saving certificates of deposit often have a five-year lock-in term.</p>
<p>Investors who purchase tax-saving FDs are eligible to get tax advantages under the Income Tax Act’s Section 80C limit of Rs 1.5 lakh.</p>
<p>On the other hand, FD interest will be subject to taxation. On the other hand, under Section 80TTB of the I-T Act, older persons are eligible to obtain benefits for an extra Rs 50,000 on the interest they have earned on FDs.</p>