HDFC Bank - Tax Saving FD

The HDFC Bank Tax Saver FD is a type of fixed deposit account that combines the benefit of steady interest earnings with tax savings. By investing in a 5-year HDFC Bank Tax Saving FD, you can claim a tax exemption of up to ₹1.5 lakh annually on the principal invested u/s 80C of the Income Tax Act of 1961. 

It is important to note that the interest earned on the invested principal is taxable if it is above ₹50,000 (₹1,00,000 for seniors) in a given financial year. Additionally, you cannot withdraw the invested sum during the lock-in period of 5 years or take a loan against the same. Read on to understand the features, eligibility, and TDS rules of an HDFC Bank Tax Saving FD. 

Key Features of HDFC Bank Tax Saver FD

Here’s a quick overview of the key characteristics and features of an HDFC Bank Tax Saver FD:

Feature	Details
Tax Benefit	You can claim a maximum deduction of ₹1.5 lakh (in a FY) on the invested amount u/s 80C.
Interest Rate	6.40% p.a. (for regular investors) 6.90% p.a. (for senior citizens)
Minimum Deposit	₹100. You can add more in multiples of ₹100.
Maximum Deposit	₹1,50,000 in a financial year.
Eligibility	Resident Individuals Hindu Undivided Families (HUFs)
Interest Payout Options	Monthly  Quarterly  At maturity
Premature Withdrawal	Not allowed.
Loan/ Overdraft Facility	Not allowed.
Joint Account Holding	In case of a joint deposit, the tax benefit is available only to the first accountholder.
Tax Treatment of Interest	Completely taxable.
TDS	10% when the interest payable or reinvested amount is more than ₹50,000 (₹1,00,000 for seniors) in a FY.

Note: The details mentioned above are valid as of 28th September, 2025. 

What are HDFC Tax Saver FD Rates for 2025?

As of 28th September, 2025, HDFC Bank Tax Saver FD rates are as follows:

FD Scheme	Tenure	Regular Citizens	Senior Citizens
HDFC Bank Tax Saving FD	5 Years	6.40% p.a.	6.90% p.a.

Note: HDFC Bank Tax Saver FD interest rates are subject to change without prior notice. Remember to check the latest rates before investing. 

What are the Eligibility Criteria for Booking a Tax Saving FD with HDFC Bank?

To open an HDFC Bank Tax Saving fixed deposit account, you must be one of the following: 

• A resident individual
• Hindu Undivided Family (HUF)

How Can You Reduce Your Tax Liability by Investing in an HDFC Bank Tax Saver FD?

Opening an HDFC Bank Tax Saver fixed deposit can help lower your annual income tax liability. Here’s how this works:

• Step I: Calculate your Gross Income

Compute your gross total income. This means adding up income from all sources, including your salary, professional/business income, property income, capital gains, and others.

• Step II: Invest in Tax Saver FD

Next, book an HDFC Bank Tax Saving FD and deposit up to ₹1.5 lakh into the account.

• Step III: Claim Deduction under Section 80C 

This invested sum has to be subtracted from your gross total income calculation. Post that, you will reach your net taxable income (the income on which income tax will be levied).

• Step IV: Pay Tax as per Your Slab

Next, apply the income tax slab rate applicable to your net taxable income to arrive at your total tax liability. 

TDS on an HDFC Bank Tax Saver FD

While the principal invested in an HDFC Bank Tax Saver FD qualifies for tax deductions, the interest earned is subject to TDS deductions as per the following rules:

• For regular investors, TDS is deducted if the interest income on the investment exceeds ₹50,000 in a financial year. 
• For senior citizens, the TDS threshold is set at ₹1,00,000 under Section 80TTB of the IT Act. 
• If the annual income of the investor is below the taxable limit, they must submit Form 15G (Form 15H for seniors).
• TDS is deducted at 10% for both regular and senior citizens who have a valid PAN.
• TDS will be deducted at 20% if you fail to submit your PAN details (as per Section 206AA).

Who Can Consider Investing in an HDFC Bank Tax Saving FD?

Opening an HDFC Bank Tax Saver FD may be suitable for the following categories of investors:

• Resident individuals who want to earn assured returns from a safe investment, while saving tax under Section 80C. 
• Low-risk investors who prefer capital safety over potentially high market-linked returns.
• Hindu Undivided Families (HUFs) looking for a tax-efficient investment option.
• Investors who do not anticipate needing the deposited sum within the next 5 years.

Want to Save on Tax While Earning Interest at a Fixed Rate? Book Your FD with GoldenPi

If you’re someone looking for safe returns while lowering your taxable income, you can consider investing in an HDFC Bank Tax Saving FD. You can earn interest at 6.40% p.a. (6.90% p.a. for seniors) while enjoying up to ₹1.5 lakh p.a. as deduction u/s 80C. However, be prepared to have your money locked in for 5 years. 

Before you book your tax saver FD, always remember to compare interest rates. You can check out popular tax saver FDs available on GoldenPi and apply online in under 5 minutes!