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New IDBI deposit
August, 03rd 2006

IDBI Ltd is launching a fixed deposit, `IDBI Suvidha Tax-Saving Fixed Deposit', with effect from August 4.

The five-year deposit scheme will have an interest rate of 8.5 per cent and 9 per cent for senior citizens. This is following the notification by the Government of India exempting five-year fixed deposits from tax under the Section 80 (C) of the Income Tax Act, said a press release from the bank. Depositors can claim tax exemption on a deposit of up to Rs 1 lakh.

The scheme will have a lock-in period of five years.

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