Deposit in RD(Recurring Deposit), UTI save tax?



I want to save salary income tax. Is it safe to deposit in RD, UTI? Please tell me something about RD (recurring deposit).

Deposit in RD(Recurring Deposit), UTI save tax?
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3 Replies to “Deposit in RD(Recurring Deposit), UTI save tax?”

  1. Features of Recurring Deposit.

    Recurring deposits are accepted in equal monthly installments of minimum Rs 1,000 and above in multiples of Rs 500 thereafter.
    The fixed number of installments for which a depositor can opt are 12, 24, 36, 39, 48, 60, 63, 72, 84, 96, 108 and 120 months.
    Transfer of Accounts – a recurring deposit account can be transferred from one office of the Bank to another branch.
    The amount of installment once fixed, cannot be changed .
    Installment for any calendar month is to be paid on or before the last working day of the month. Where there is delay in payment of installment, one can regularise the account by paying the defaulted installment together with a penalty (at present it is @ PLR plus 4 % for the period of delay).Fraction of a month will be treated as full month for the purpose of calculating the penalty.
    The total amount repayable to a depositor, inclusive of interest, depends on the amount of monthly installments and the period of deposit.

    If you save in RD account,no tax savings is
    available.
    UTI has UTI Equity Tax Savings Plan in which
    tax savings is available.


  2. Deposit in RD will not save IT.

    Invest in a house and take housing loan as per your capacity.
    Buy health insurance if needed.
    Buy a term plan (life insurance) as per requirement.
    Invest in PPF.
    Invest in ELSS of MFs.(UTI is one of them)
    Invest in Bank Fixed Deposits for 5 years.
    Invest in a Pension fund

    No investments are safe.






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