Karur Vysya Bank launched the KVB Tax Shield deposit on Wednesday. Investments in this scheme qualify for tax benefit under Section 80 C of the Income-Tax Act.
The return on investment is 50 basis points higher at 9 per cent for senior citizens and 8.5 per cent for regular depositors. Interest is payable at quarterly rest, but for depositors seeking monthly interest, it would be paid at discounted rates, states a KVB release.
It would be a five-year deposit. The minimum and maximum investment under this scheme has been fixed at Rs 100 and Rs 1 lakh, respectively.