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Top 10 Banks Offering Best Returns On 5-Year Tax Saving Fixed Deposits In 2021

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For investors with a low-risk profile, new investors, or senior citizens, fixed deposits (FD) are always the best to bet. It is an investment vehicle under the debt category that not only generates guaranteed returns but also allows tax benefits under section 80C, flexible tenure, and deposit insurance cover up to Rs 5 lakh by DICGC where depositors can claim their money within 90 days if their banks go under a moratorium.

 

Here we are talking about fixed deposits for 5-years where our readers, especially debt investors need to keep in mind that the tax benefits up to Rs 1.5 lakhs under section 80C will only apply if they stay invested for 5-years of lock-in period which simply states that they can not make a premature withdrawal. By summing up all these factors, here we have compiled the top 10 public sector, private sector, and small finance banks that are now promising higher returns on fixed deposits of up to 5 years or tax-saving fixed deposits of less than Rs 2 Cr.

Top 10 Small Finance Banks Offering Good Returns On 5-Year Tax Saving FDs
 

Top 10 Small Finance Banks Offering Good Returns On 5-Year Tax Saving FDs

When it comes to fixed deposits, small finance banks always offer higher returns to both regular and senior citizens compared to the leading private and public sector banks. But as a matter of concern for the safety of their deposits, let me remind the investors that they can enjoy the deposit insurance cover provided by DICGC across small finance banks also. For higher returns along with deposit safety, customers can open a fixed deposit account for 5-years in any of the below-listed small finance banks respectively.

Sr No.BanksRegular FD RatesSenior Citizen FD RatesTenureW.e.f.
1 Ujjivan Small Finance Bank 6.75% 7.25% 3 Years and 1 Day to 5 Years March 5, 2021
2 Jana Small Finance Bank 6.75% 7.25% 3 years to less than 5 years 07.05.2021
3 Fincare Small Finance Bank 6.75% 7.25% 59 months 1 day to 66 months 29 July, 2021
4 North East Small Finance Bank 6.50% 7.00% 1096 days to less than 1825 days April 19, 2021
5 Equitas Small Finance Bank 6.25% 6.75% 4 years 1 day to 5 years June 1, 2021
6 Suryoday Small Finance Bank 6.25% 6.50% 5 years June 21, 2021
7 Utkarsh Small Finance Bank 6.00% 6.50% 701 Days to 3652 Days July 1, 2021
8 Capital Small Finance Bank 6.00% 6.50% 1 Year to less than 5 Years June 3, 2021
9 AU Small Finance Bank 6.00% 6.50% 45 Months 1 Day to 60 Months June 23, 2021
10 ESAF Small Finance Bank 5.25% 5.75% 1821 days to 3653 days 02.05.2021
Source: Bank Websites

Top 10 Private Sector Banks Promising Higher Returns On 5-Year Tax Saving FDs

Top 10 Private Sector Banks Promising Higher Returns On 5-Year Tax Saving FDs

After small finance banks, private sector banks offer the best returns on fixed deposits to both regular and senior citizen investors. By keeping deposit insurance cover benefits and higher returns in mind, here we have compiled the top 10 private sector banks that are now promising higher interest rates on 5-year deposits.

Sr No.BanksRegular FD RatesSenior Citizen FD RatesTenureW.e.f.
1 RBL Bank 6.50% 7.00% 60 months July 2, 2021
2 DCB Bank 6.50% 7.00% 36 months to 60 months May 15, 2021
3 Yes Bank 6.25% 7.00% 3 years to less than 5 years June 3, 2021
4 IndusInd Bank 6.00% 6.50% Indus Tax Saver Scheme (5 years) July 23, 2021
5 IDFC First Bank 5.75% 6.25% 5 years May 1, 2021
6 Axis Bank 5.40% 5.90% 3 years to 5 years 22.06.2021
7 ICICI Bank 5.35% 5.85% 5 Years (80C FD) 21.10.2020
8 HDFC Bank 5.30% 5.80% 3 year 1 day- 5 years May 21, 2021
9 Bandhan Bank 5.25% 6.00% 3 years to less than 5 years June 7, 2021
10 Kotak Mahindra Bank 5.20% 5.70% 4 years and above but less than 5 years July 23, 2021
Source: Bank Websites

Top 10 Public Sector Banks Providing Best Returns On 5-Year Tax Saving FDs

Top 10 Public Sector Banks Providing Best Returns On 5-Year Tax Saving FDs

For deposit amounts of less than Rs 2 Cr, here are the top 10 public sector banks offering the best interest rates on 5-year fixed deposits to both regular and senior citizens in 2021.

Sr No.BanksRegular FD RatesSenior Citizen FD RatesTenureW.e.f.
1 Union Bank of India 5.50% 6.00% 3 years to less than 5 years 09.07.2021
2 Canara Bank 5.50% 6.00% 3 years and up to 5 years 08.02.2021
3 State Bank of India 5.30% 5.80% 3 years to less than 5 years 08.01.2021
4 Punjab & Sind Bank 5.30% 5.80% 3 Years - 5 Years 16.05.2021
5 Bank of Baroda 5.25% 5.75% 3 years and up to 5 years 16.11.2020
6 Punjab National Bank 5.25% 5.75% above 3 year & upto 5 years 01.05.2021
7 IDBI Bank 5.25% 5.75% 5 years July 14, 2021
8 Indian Overseas Bank 5.20% 5.70% 3 Years and Above 09.11.2020
9 Indian Bank 5.15% 5.65% 5 years 05.02.2021
10 Central Bank of India 5.00% 5.50% 2 years and up to 10 years 10.07.2021
Source: Bank Websites

Story first published: Saturday, July 31, 2021, 13:35 [IST]
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