Opening a Tax-Saving FD: Process and Documents Required

Posted on Thursday, November 28th, 2024 | By IndusInd Bank

Are you looking to open a tax-saving Fixed Deposit (FD) account? Wondering what documents you require to get started? Tax-saving FDs are a prudent investment option, offering both tax benefits and safety. But before you can start growing your savings, knowing what paperwork is required to open one is crucial. Explored here are the process and documents for tax-saving fixed deposits.  

1) Mobile Number Registration  

The first step in opening your tax-saving fixed deposit account is registering with your mobile number. This step is essential as it permits you to get crucial notifications and updates about your FD.  

Your mobile number acts as a fundamental point of contact and allows you to easily manage your FD online, from tracking the progress of your FD to receiving timely reminders about maturity dates. 

2) KYC Documents  

To proceed with opening a tax-saving FD, you are required to submit your KYC (Know Your Customer) documents. The basic documents required are your Aadhaar and PAN cards. These documents for FD creation are mandatory as they authenticate your identity and ensure that your bank account complies with regulatory and legal standards.  

PAN can assist in tracking your tax-saving investments, while Aadhaar ensures your identity is linked securely to your financial transactions. 

3) Principal Amount  

Once your identity is authenticated, the next step is to enter the principal component you wish to deposit in your tax-saving FD. This is the amount that will be locked in the FD account, growing with a predefined interest rate over the tenure.  

Whether you are an existing or new customer, selecting the correct amount is crucial as it will determine your earnings. To make better decisions regarding your savings, you can use an online FD calculator to estimate the returns on your investment.  

It’s also important to note that tax-saving FDs come with a fixed tenure of five years. This is the lock-in period, and you cannot liquidate your FD before the five years are complete.  

4) Video KYC  

If you open an online tax-saving FD with IndusInd Bank, you can benefit from a 100% account opening process. The KYC process is completed through a secure video call and is a quick way to authenticate your identity without the need to visit a branch. All you need is a stable internet network and a device with a camera. This step ensures your account is completely compliant and it adds a security layer by confirming your identity in real time. 

5) Account Confirmation  

After you have submitted all the required documents and completed the video KYC, the Bank will authenticate your details. Once everything is in place, you will get confirmation of your new FD account.  

This confirmation is sent through SMS or email, and it marks the successful opening of your tax-saving FD. From this point, your funds will begin working for you, earning interest and helping you save on taxes. 

Eligibility Criteria for Opening an Online Fixed Deposit  

Before opening an FD account with IndusInd Bank, ensure you meet the listed criteria: 

1) Citizenship – Only Indian citizens are eligible -H3 

2) Age – You must be at least 18 years old -H3 

3) KYC documents – You need valid KYC documents, namely Aadhaar and PAN cards -H3 

Stepwise Process to Book Your FD Instantly with IndusInd Bank  

Web mode, mobile banking, and net banking are three major routes to book your FD instantly. 

Web Application  

This mode of opening a tax-saving FD is applicable for non-IndusInd Bank customers too 

 
IndusMobile App  

This mode is applicable only for existing customers. 

IndusNet Banking Portal  

This mode is applicable only for existing customers. 

Also Read: 5 Benefits of a Tax-saving Fixed Deposit 

Ending Note  

Opening an IndusInd Bank Tax-Saver FD is not only easy but also beneficial. It offers a secure way to grow your money while availing tax benefits under Section 80C. Whether you are a new or existing customer, the online process is tailored to be hassle-free and swift.  

The eligibility criteria for a tax-saving FD are simple: you must be an Indian citizen, at least 18 years old, and possess KYC documents (Aadhaar and PAN cards). There are three modes to book an FD with IndusInd Bank: web application, IndusMobile app, and IndusNet banking portal. 

So, why wait? Begin your journey towards financial growth by opening a tax-saver FD with IndusInd Bank today! 

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.