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Banks Offering Highest Interest Rates on Tax-Saving FDs, Check Here

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Nothing beats a tax-saving fixed deposit scheme for a tax-saving investment option. It is one of the popular investment options that fall under the section 80C category of financial plans, according to the Income Tax Act of 1961. Tax-advantaged FDs are considered less risky than other investment instruments such as equity funds. Tax-advantaged fixed deposits are an option for risk-averse investors and taxpayers in lower tax brackets (FDs). Tax benefits of up to Rs 1.5 lakh are available under Section 80C for bank fixed deposits. These FDs, on the other hand, have a 5-year lock-in period.

 
Banks Offering Highest Interest Rates on Tax-Saving FDs, Check Here

DCB Bank

For 5-year terms, the interest rate on DCB Bank Tax Saving FDs is 7.60% p.a. for the general public and 8.10% p.a. for senior citizens. The bank also provides NRIs with a variety of fixed deposit products, including NRO, NRE, and FCNR fixed deposits.

Axis bank

Axis Bank offers a 5 year Tax Saver FD Scheme with an interest rate of 7.00% p.a. for regular citizens and 7.75% p.a. for senior citizens. In a fiscal year, depositors can claim tax deductions of up to Rs 1.5 lakh from taxable income through an Axis Bank tax saver FD under Section 80C of the Income Tax Act.

City Union Bank

On terms ranging from 7 days to 10 years, City Union Bank offers FD interest rates ranging from 5.00-7.75% p.a. to the general public and 5.00-8.00% p.a. to senior citizens. The interest rate on City Union Bank Tax Saving FDs for the general public is 7.00% p.a. for 5-year terms.

HDFC Bank

HDFC Bank provides a 5-year Tax Saver FD Scheme with an interest rate of 7.00% p.a. for regular citizens and 7.50% p.a. for senior citizens. In a fiscal year, depositors can claim tax deductions on fixed deposits under Section 80C of the Income Tax Act.

ICICI Bank

ICICI Bank provides FD rates ranging from 3.00 to 7.00% p.a. to the general public and 3.50 to 7.50% p.a. to senior citizens on terms ranging from 7 days to 10 years. For 5-year terms, the interest rate on ICICI Bank Tax Saving FDs is 7.00% p.a. for the general public and 7.50% p.a. for senior citizens.

AU Small Finance Bank

For 5-year terms, the interest rate on AU Small Finance Bank Tax Saving FDs is 7.20% p.a. for the general public and 7.70% p.a. for senior citizens.

IndusInd Bank

General depositors can earn 6.75% p.a., while senior citizens can earn 7.35% p.a. on tax-saving FDs. With this scheme, you can deposit as little as Rs.1,000 and as much as Rs.1.5 lakh. There is a 5-year lock-in period during which you cannot withdraw funds from your FD account.

RBL Bank

General depositors can earn 7.00% p.a., while senior citizens can earn 7.50% p.a. on tax-saving FDs. With this scheme, you can deposit as little as Rs.100 and as much as Rs.1.5 lakh. There is a 5-year lock-in period during which you cannot withdraw funds from your FD account.

Read more about: income tax fixed deposit bank
Story first published: Tuesday, January 24, 2023, 13:39 [IST]
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