Karnataka Vikas Grameena Bank (KVGB) has launched a new tax-saving term deposit product — ‘Vikas Tax Saver’.
Launching the product in Dharwad on Tuesday, Ashok Reddy, Chairman of KVGB, said that income-tax payers can deposit ₹1.5 lakh in this term deposit and get income-tax benefit on it. This follows a notification by the Union Finance Ministry enhancing the investment limit to ₹1.5 lakh to boost domestic investment in long-term savings.
The amount deposited under ‘Vikas Tax Saver’ for a term of five years will be deducted from income before calculation of personal income-tax. Though the lock-in period for deposit is five years, the deposit holder can get interest either in lumpsum or every quarter or month, he said.
This deposit product offers a rate of interest of 8.6 per cent. Senior citizens will get an interest of 9.2 per cent in this scheme.
A press release by the bank said here that SR Ganga and Rama Naik, General Managers of the bank, and Sheela Bhandarkar of Nabard in Dharwad, were present on the occasion.