Top 10 Banks Promising Best Interest Rates On Tax-Saving FDs To Senior Citizens

Investors, particularly elderly persons, who want to reap tax benefits of up to Rs 1.5 lakh under section 80C of the Income Tax Act and deposit safety up to Rs 5 lakhs provided by DICGC can invest in a tax-saving fixed deposit for a 5-year lock-in term. Interest earned on tax-saving fixed deposits are payable on a monthly or quarterly basis and also the interest amount earned can be reinvested by the account holder. When it comes to senior citizens, most of the banks provide them additional rates of interest as compared to the general public. For senior citizens who want to invest for 5 years without making a premature withdrawal, here we have picked up the top 10 private, public and small finance banks that are promising higher returns on tax-saving fixed deposits in 2021 even after the repo rate is kept unchanged by RBI.

Top 10 Government Banks Offering Best Interest Rates On Tax-Saving FDs In 2021

For senior citizens who want to open a tax-saving fixed deposit account for a deposit amount of less than Rs 2 Cr, here are the top 10 public sector banks offering the best interest rates.

Sr No.	Banks	Interest Rates For Senior Citizens	Tenure	W.e.f.
1	Union Bank of India	6.00%	More than 3 years to 5 years	09/07/2021
2	Canara Bank	6.00%	3 years & above to less than 5 years	08.02.2021
3	State Bank of India	5.80%	3 years to less than 5 years	08.01.2021
4	Punjab & Sind Bank	5.80%	3 Years - 5 Years	16.05.2021
5	Bank of Baroda	5.75%	Above 3 Years and upto 5 Years	16.11.2020
6	Punjab National Bank	5.75%	Above 3 year & upto 5 years	01.08.2021
7	Indian Overseas Bank	5.70%	3 Years & Above	09.11.2020
8	Indian Bank	5.65%	5 Years	05.02.2021
9	Bank of India	5.55%	3 years & above to less than 5 years	01.08.2021
10	UCO Bank	5.50%	Above 3 Years and upto 5 Years	16.12.2020
Source: Bank Websites

Top 10 Private Sector Banks Promising Higher Interest Rates On Tax-Saving FDs In 2021

For a deposit amount of less than Rs 2 Cr, here are the top 10 private sector banks providing higher returns on tax-saving fixed deposits to senior citizens.

Sr No.	Banks	Interest Rates For Senior Citizens	Tenure	W.e.f.
1	DCB Bank	7.00%	More than 36 months to 60 months	15 May 2021
2	Yes Bank	7.00%	3 years to less than 5 Years	05.08.2021
3	RBL Bank	7.00%	60 months	02.07.2021
4	IndusInd Bank	6.50%	Indus Tax Saver Scheme (5 years)	23.07.2021
5	IDFC First Bank	6.25%	Tax Saver Deposit (5 Years)	May 1, 2021
6	South Indian Bank	6.15%	Tax Gain ( 5 Years )	July 21, 2021
7	Karur Vysya Bank	6.00%	KVB - Tax Shield	08.07.2021
8	Bandhan Bank	6.00%	3 Years to less than 5 Years	June 7, 2021
9	Axis Bank	5.90%	3 years to 5 years	22.06.2021
10	ICICI Bank	5.85%	5 Years (80C FD)	21.10.2020
Source: Bank Websites

Top 10 Small Finance Banks Providing Good Returns On Tax Saving Fixed Deposits In 2021

Here are the 10 small finance banks promising higher returns on tax-saving fixed deposits to senior citizens for a deposit amount of less than Rs 2 Cr.

Sr No.	Banks	Interest Rates For Senior Citizens	Tenure	W.e.f.
1	Ujjivan Small Finance Bank	7.25%	3 years and 1 day to 5 years	05.03.2021
2	Jana Small Finance Bank	7.00%	5 Years[1825 Days]	07.05.2021
3	North East Small Finance Bank	7.00%	1096 days to less than 1825 days	19 April 2021
4	Fincare Small Finance Bank	6.75%	48 months 1 day to 59 months	29 July 2021
5	Equitas Small Finance Bank	6.75%	4 years 1 day to 5 years	1 June 2021
6	Suryoday Small Finance Bank	6.50%	5 Years	June 21, 2021
7	Utkarsh Small Finance Bank	6.50%	701 Days to 3652 Days	July 1, 2021
8	AU Small Finance Bank	6.50%	45 Months 1 Day to 60 Months	23 June 2021
9	Capital Small Finance Bank	6.00%	1 Year to less than 5 Years	June 3, 2021
10	ESAF Small Finance Bank	5.75%	1821 days to 3653 days	01.08.2021
Source: Bank Websites