![âEarn interest, save tax](https://img.etimg.com/photo/msid-42031747,quality-100/et-logo.jpg)
1/9
âEarn interest, save tax
ThinkStock Photos
![âAre you eligible?](https://img.etimg.com/photo/msid-42031747,quality-100/et-logo.jpg)
2/9
âAre you eligible?
iStock
![âDocuments needed](https://img.etimg.com/photo/msid-42031747,quality-100/et-logo.jpg)
3/9
âDocuments needed
ThinkStock Photos
![âMinimum and maximum investment amount](https://img.etimg.com/photo/msid-42031747,quality-100/et-logo.jpg)
4/9
âMinimum and maximum investment amount
Getty Images
![âInterest payments](https://img.etimg.com/photo/msid-42031747,quality-100/et-logo.jpg)
5/9
âInterest payments
Further. you may pick between the cumulative interest or non-cumulative options of tax-saving FDs, offered by most banks. Cumulative option means that interest accrued on your principal will be re-invested and paid to you at the time of maturity whereas in case of the non-cumulative option, interest will be paid to you on monthly/quarterly/half-yearly/annual basis, as offered by the bank.
ThinkStock Photos
![âTenure of FD](https://img.etimg.com/photo/msid-42031747,quality-100/et-logo.jpg)
6/9
âTenure of FD
ThinkStock Photos
![âType of holding](https://img.etimg.com/photo/msid-42031747,quality-100/et-logo.jpg)
7/9
âType of holding
ThinkStock Photos
![âTaxability](https://img.etimg.com/photo/msid-42031747,quality-100/et-logo.jpg)
8/9
âTaxability
If interest payments on FDs with a single bank exceed Rs 10,000 in a financial year, then TDS will be deducted by the bank. To avoid TDS, one can submit Form 15G or Form 15H, as applicable.
ThinkStock Photos
![âAlso keep in mind...](https://img.etimg.com/photo/msid-42031747,quality-100/et-logo.jpg)
9/9
âAlso keep in mind…
- Nomination facility is also available for these deposits.
- Unlike a regular bank FD, which can be used as collateral against a loan, a tax-saving FD cannot be used as collateral or be pledged to get a loan.
ThinkStock Photos