Can pre-mature tax saver fd

GIRISH AGRAWAL (Querist) 10 August 2011 This query is : Resolved
RES ALL MEMBERS...

I INVEST 5 YRS FDR IN MY BANK. BUT I DO NOT CLAIM 80C.

CAN I FRE MATURE MY TAX SAVING FDR.

BANK SAID:- PRE MATURE IN TAX SAVER FD ARE NOT ALLOWED.

CAN I GO CONSUMER FORUM

GIRISH AGRAWAL
DURG, CHHATTISGARH

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R.Ramachandran (Expert) 10 August 2011
The Tax Saver bonds/FDRs have specific lock in periods. Whether you avail 80C benefit or not is not the consideration. Therefore you are bound by your contractual obligations of the lock in period.
Thus, there is nothing that you can gain by approaching the Consumer Forum.
In any case, nobody can stop you from approaching the Consumer Forum.

A. A. JOSE (Expert) 11 August 2011
The Bank's view appears to be correct please.

M V Gupta (Expert) 12 August 2011
Yes. You cannot retire the deposit prematurely before the expiry of the prescribed period. No use of going to the consumer forum as there is no deficiency in service on the part of the bank.