e-TDR/e-STDR under Tax Saving Scheme Frequently Asked Questions

e-TDR/e-STDR under Tax Saving Scheme Frequently Asked Questions

  1. Can I open a Term deposit under Tax Saving Scheme through Internet banking ?Yes, if you have Internet banking user name and password, and at least one transaction account mapped to the username. You should have ‘transaction rights’ or ‘Limited transaction rights’ on this account.
  2. What is the minimum tenure for Term deposit under Tax Saving Scheme ?The minimum tenure for a Term deposit under Tax Saving Scheme is 5 years and maximum is 10 years.
  3. Is there any lock-in period for Term deposit under Tax Saving Scheme ?Yes, there is a lock-in period for 5 years.
  4. What are the interest rates for a term deposit ?The interest rates vary from time to time. You can view the latest interest rates by clicking on “View current interest rate” link provided in e-TDR/e-STDR request page.
  5. What is the minimum and maximum amount for a term deposit to be opened under Tax Saving Scheme ?You can open a term deposit with a minimum amount of Rs.1000/- , and the maximum amount that can be deposited under the scheme is Rs. 1.5 lac in a financial year.
  6. Can I generate a advice / receipt for Term deposit under Tax Saving Scheme through Internet banking ?No. The advice / receipt has to be collected from the Home Branch only.
  7. In whose name will the term deposit account be opened? What is the mode of operation ?The name(s), mode of operation and home branch of newly generated deposit a/c will be same as in debit a/c, from which term deposit a/c is funded. However in case of Joint Accounts only the first holder shall be eligible for deduction from income under section 80C of Income Tax Act.
  8. What are the types of accounts from which I can debit an amount for the deposit ?You can debit a savings, current, or OD account to open term deposit. The account selected for debiting should be valid transactional a/c through Internet Banking channel and should not be a stopped / dormant / locked account.
  9. Can I close my e-TDR/e-STDR under Tax Saving Scheme through Internet banking ?No. Pre-mature closure of e-TDR/e-STDR under tax saving scheme is not allowed during the lock-in period. After 5 years, you may close it through your home branch only. In case of death of depositor, legal heir of depositor may pre-maturely close it through home branch only.
  10. Can I set the maturity instruction for e-TDR/e-STDR under Tax Saving Scheme through Internet banking ?The default maturity instruction will be “Repay Principal and Interest” and at maturity proceeds will be credited to your account which was used for funding the deposit.
  11. Can I transfer the maturity proceeds of deposit to any of my accounts ?No, the maturity amount will be transferred only to the debit account from which the deposit was funded.
  12. Can I open online term deposit a/c in any other name(s), not belonging to debit a/c from which term deposit a/c is funded ?No, You may contact the branch for the same.
  13. Can senior citizen avail additional rate of interest on term deposit under Tax Saving Scheme ?Yes, Senior citizen can avail additional rate of interest in e-TDR/e-STDR under Tax Saving Scheme by exercising the relevant option. The date of birth in Bank’s record will be considered for age validation. The minimum days and minimum amount applicable for additional rate of interest for senior citizen will be as per Bank’s policy. In case of joint accounts, the Senior Citizen benefit can be availed only if the first account holder qualifies for this benefit.
  14. How can I add nominees in Term Deposit a/c ?While opening an e-TDR/e-STDR under Tax Saving Scheme, you will be provided with an option to retain the nominee(s) for term deposit a/c as in debit a/c from which it is funded.
  15. Can I add a new nominee online ?No, you will have to visit your branch for adding a new nominee.
  16. Is there any cut off time for creating e-TDR/e-STDR online under Tax Saving Scheme ?Yes. e-TDR / e-STDR can be created online from 8:00 AM IST to 8:00 PM IST. Requests initiated beyond this period will be scheduled for the next opening hours.
  17. Can I avail loan against the term deposit opened under Tax Saving Scheme ?No, you can’t avail any loan against the term deposits opened under Tax Savings Scheme.