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Bank Tax Saving Deposit Scheme

This scheme was notified by Central Government vide Notification No. 203/2006 dated 28th July 2006. This is the only deposit scheme available with banks where tax benefits under section 80C of Income Tax, Act are available to depositors The deposit is made for a period of five years and no loan is available against security of this deposit.

Salient features of Bank Term Deposit Scheme (BTDS)

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Only individuals and HUFs (Hindu Undivided Families) are eligible. The deposits can be issued on single holder or joint holder types.

Minimum amount

₹ 100/-

Maximum amount

In multiples of ₹ 100/- not exceeding ₹ 1,50,000/- in a year.

Maturity period

5 years


The interest rate is fixed by issuing bank from time to time.
The interest may be paid either in lump sum at the time of maturity or it may be paid every quarter or every month.

Nomination facility

Available, except in cases where deposits are made or held in the name of minors.


Allowed from one branch of the issuing bank to another.

Premature Encashment

Not allowed, except in the event of the death of the first holder of the deposit in a case of a joint holder type deposit, the other holder of the deposit shall be entitled to encash the term deposit before its maturity by making an application to the branch manager of the bank, supported by proof of death of the first holder of the deposit.
(Amendment by Notification No.289/2007 dated 13-12-2007)

Tax benefits

Available under Section 80C

Interest Taxability

Taxable, TDS is deductible at source.

Other features

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Updated : Feb 05, 2019