Tax saving Fixed Deposit is one of the safest ways of saving tax. As name suggest, tax saving FD’s offers tax exemption to the investors under section 80C of the income tax act 1961. In other words, tax payers can invest under tax saving FD’s to avail tax exemption upto Rs 1 lakhs u/s 80C. Investors can invest in tax saving FD’s either by going to bank branch or using banks online platform. So if do internet banking then you can create your tax saving FD anytime anywhere. This is considered as one of the best investment option as it offers good rate of return on investment along with income tax exemption u/s 80C.
Here I am demonstrating step wise step process of creating Tax Saving FD in ICICI bank.
- First visit the official website of bank. For ICICI bank visit on www.icicibank.com.
- Enter your registered User ID and Password. Press the Login button.
- On successful log-in, you will be redirected to you Account Page.
- On the left vertical menu, Click on the ‘Service Requests’ option. For ref. check the snapshot below.
- Click on the ‘Click Here’ button to view the complete list of service request options. This will display a complete list of service requests offered by ICICI bank.
- On the service Request page, Click on ‘Open a Fixed Deposit’ link.
- Choose the link ‘Request for Tax saver FD’ to apply for tax saver Fixed Deposit.
- If you have multiple account, select the account number from which you want to create this Fixed Deposit and hit the ‘Go’ button. ( Your request will not be processed if your account in dormant/ inactive or your account has zero/ negative balance.
- Enter the amount that you wish to transfer from your bank account to ‘Tax saver FD’. The minimum amount that you can allocate for Tax Saver FD is Rs 10,000 and maximum is Rs 1 lakh.
- In ‘Type of Deposit’ select the type that you wish for your interest payments.In Cumulative FD- Your interest payout will be added to your FD amount.
- In monthly interest payout – the interest will be credited to your saving account every month.
- In Quarterly interest payout – the interest will be credited to your saving account every quarter.
- System will ask you to confirm weather you want to submit the request for creation of Tax saver FD. Click OK.
- Check the data entered for the creation of Tax Saver FD. Enter your internet banking transaction password and click OK.
- System will generate a confirmation massage confirming the successful submission of your request for Tax Saver Fixed Deposit.