Main features of Tax saving FD

• TDS will be used in accordance with current regulations.
• Fixed deposits that save on taxes have a five-year lock-in period.
• Only the first depositor will be eligible for the tax benefit under Section 80C in the case of joint deposits.
• During the five-year lock-in period, the loan facility is not available.
• Interest rates for tax saving TDS are applicable as per the prevailing interest rate
• Interest rates on tax-saving fixed deposits vary by bank, here are the banks with the highest tax-saving FD interest rates.
  
  
   
  Interest taxable
  According to HDFC bank "the interest is taxable in line with your tax slab. Besides, the bank will deduct TDS at 10% if your interest income across all deposits and branches exceeds Rs 10,000 in a FY. If you haven't submitted your PAN, the bank will deduct TDS at 20%
  
  

  Death of account holder
  According to the SBI website, "In case of death of account holder, the nominee/legal heirs can withdraw the deposit any time before or after maturity.
  
  

  In case of death of first account holder in joint account, the other holder is entitled to withdraw the deposit before its maturity. The Bank shall pay interest at the rate applicable for the period deposit has run without any penalty."
  
  Post office term deposit
  The investment under 5 year TD qualifies for the benefit of section 80C of Income Tax Act, 1961.The interest rate offered in 6.7% for this quarter.