The limit for availing tax benefits under Sec 80C has been hiked to Rs 1.5 lakh from the earlier limit of Rs 1 lakh in the Union Budget 2014. Bank Tax Savings Deposits are excellent tax saving instruments considering their rates of interest and safety. Individuals who are looking to invest in Bank Fixed Deposits that offer tax savings under Sec 80C can consider the following banks, which offer high interest rates.
High interest rate
Ratnakar Bank's Tax Savings Fixed Deposit is offering an interest rate of 9.5 per cent. The Bank is slated to go public shortly, though it maybe a lesser known bank when compared to other peers from the sector. However, the interest rate of 9.5 per cent is very attractive.
Significant presence in the South
Like Ratnakar Bank, the Tamil Nad Mercantile Bank is offering an interest rate of 9.5 per cent on its tax saving deposit. The Bank is financially sound with a significant branch presence in South India.
Government owned entity
The government owned IDBI Bank has pegged the interest rate on its tax savings deposit scheme at 9.10 per cent. This is lower than some of the private sector banks mentioned earlier.
Marginally lower interest rate than peers
Corporation Bank along with a host of other banks is offering an interest rate of 9 per cent on its tax savings deposits.