Fixed Deposits and Section 80c

Deduction under section 80c has mentioned Fixed Deposits. You cannot withdraw and pledge the amount before the maturity period. According to section 80c the maturity period is for 5 years. The low risk averse customers are attracting towards this scheme. Specially those who do not have wish to invest in PPF and ELSS market. Interest earned on FD is liable to tax, this is the single disadvantage of the scheme. Fixed deposit scheme has 8.5 to 9% interest rate. You can invest the maximum amount in this scheme is Rs 100000,as deduction under section 80c allows. Only ICICI Bank provides the facility to open fixed deposit saving online.