Does a normal FD with 5+ expiry qualify for 80c deduction?


or is tax saver FD a separate product offered by banks ?


Hi @bihitayim,

Nope, a regular FD can be broken anytime, albeit with some charges, hence do not come with 80C benefits. You will have to inform the bank to create the FD for tax savings exclusively, this FD is called a Taxsaver/80 C FD, and cannot be closed before maturity (5 years).

FYI, the interest earned on these FD’s wouldn’t be enough to beat inflation figures.



This is clear now. Thank you.