Tax-saver FD schemes allow you to get tax benefits on the interest earned from your investment. You can enjoy tax benefits of up to Rs. 1.5 lakh in a financial year under Section 80C of the Indian Income Tax. Thus, tax saving FD allows you to reduce your overall annual tax liability and, at the same time, earn valuable returns on your investments in the form of a fixed interest rate.
In addition, you can enjoy benefits like financial stability as there is zero risk of loss. At the end of the FD tenure, you get the principal amount and the accrued interest back. The prevailing market condition has no impact on the returns you get.
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