Karnataka Gramin Bank

Tax Saver Deposit

Eligibility

  • Individual A/c or in the Capacity of Karta of HUF(Hindu Undivided Family)
  • Joint A/c by two Adults or an Adult & Minor (Represented by Guardian) with operation condition either or survivor

Note: Incase of joint account exemption under section 80C is available only to first A/c holder of the deposit.

Deposit Amount

Minimum amount Rs1,000/-
Maximum amount Rs1,50,000/-

Rate of Interest

At present interest rate is 7.00 % & as may be advised from time to time.

Preferential Rate of Interest (PRI)

0.50% PRI is applicable for Senior Citizen. (not applicable in case of Kartha of HUF)

Deposit Period

5 Years

Interest Payment Mode

Monthly (discounted) or Quarterly on Fixed Deposits Or Non cumulative (TDR) Compounded Quarterly on Kamadhenu Deposits or cumulative (STDR)

Benefit

TDS Exemption under Section 80C of the Income Tax Act 1961.

TDS on Interest

Tax is deductible on interest paid/accrued as per TDS provisions applicable from time to time.

Documents to be submitted

  • Valid documents as per KYC in case of new customer.
  • Copy of PAN Mandatory.
  • Two recent pass port sized photographs.
  • The following special Clause to be incorporated in the application form if it is not available.

“I am/We are aware that this deposit is made U/s 80C of I T Act 1961 and this deposit cannot be closed before maturity/ pledged for taking VSL / pledged as collateral security to any other loan of the Bank”

Other Terms & Conditions

  • Closure before maturity is not permitted under this scheme. However, in the event of death of the first depositor pre closure of A/c is permissible & interest payable will be the rate applicable for the actual period run without penal cut.
  • Only In Case of Death of first depositor of Joint A/c, payment to be made to the survivor.
  • No loans against the deposits / cannot offer as collateral security to any loans.
  • In case of Minor, a Guardian on behalf of minor can nominate a person.
  • On demand, branch shall issue an interest paid certificate, i.e for Financial Year (FY) wise.
  • PAN number of the 1st depositor can be mentioned if requested by the depositor.

This deposit is made U/s 80C of the IT Act, 1961.
This deposit is not payable before maturity & cannot be offered as collateral security to any loans nor loans against deposits can be availed.