5 Best Tax Saving Fixed Deposits To Bet In 2022

The most common strategy for long-term debt investors who want to save tax under section 80C while still reaping secure returns on their deposits is to invest in tax-saving fixed deposits. Depositors can save tax benefits under section 80C if they invest up to Rs 1.5 lakh for a five-year deposit term. The most tempting aspect of tax-saving deposits is that, after ELSS, they are the most favoured tax saving mechanism. However, it's worth noting that tax-saving deposits have a 5-year lock-in period, which means that premature withdrawals aren't permissible. On the risk front, DICGC guarantees capital protection on both the principal and interest amount of your tax-saving deposits up to Rs 5 lakh. Tax-saving FDs are a good option for individuals who want to create wealth for their retirement age since they have low risks and assured returns. Based on extensive study, these are the top 5 public, private, and small finance banks that offer the best tax-saving interest rates.

Top 5 Public Sector Banks Offering Highest Returns On Tax Saving Deposits

Along with SBI, the top 5 public sector banks now giving the highest interest rates on tax-saving deposits are listed below.

Banks	Regular Interest Rate Per Annum	Senior Citizen Rates Per Annum	W.e.f.
Union Bank of India	5.40%	5.90%	01/09/2021
Punjab & Sind Bank	5.30%	5.80%	16/09/2021
SBI	5.30%	5.80%	15.01.2022
Bank of Baroda	5.25%	5.75%	16.11.2020
Canara Bank	5.25%	5.75%	17.01.2022
Source: Bank Websites

Top 5 Private Sector Banks Offering Highest Returns On Tax Saving Deposits

The top five private sector banks that are currently giving the highest interest rates on tax-saving deposits are listed below.

Banks	Regular Interest Rate Per Annum	Senior Citizen Rates Per Annum	W.e.f.
Yes Bank	6.25%	7.00%	04.01.2022
RBL Bank	6.30%	6.80%	03.02.2022
IDFC First Bank	6.25%	6.75%	21.01.2022
Bandhan Bank	6.25%	7.00%	12.01.2022
IndusInd Bank	6.00%	6.50%	23.07.2021
Source: Bank Websites

Top 5 Small Finance Banks Offering Highest Returns On Tax Saving Deposits

Below is a list of the top five small finance banks that are now offering the best interest rates on tax-saving deposits.

Banks	Regular Interest Rate Per Annum	Senior Citizen Rates Per Annum	W.e.f.
Jana Small Finance Bank	6.75%	7.55%	11.01.2022
Utkarsh Small Finance Bank	6.75%	7.25%	20.01.2022
Fincare Small Finance Bank	6.75%	7.25%	25th October 2021
Suryoday Small Finance Bank	6.75%	7.00%	September 09, 2021
North East Small Finance Bank	6.50%	7.00%	27.01.2022
Source: Bank Websites