For Quick Alerts
For Daily Alerts

Tax saving fixed deposits of banks under section 80C

Tax saving fixed deposits of banks under section 80C
With filing of tax returns set to begin from April 1, 2013, Bank tax Savings Fixed Deposits are one of the safest investment avenues to consider for savings under 80C of the IT Act.

Bank Tax Savings Fixed deposits are a favorite investment avenue for many Indians as they are simple and easy to understand as compared to other 80C instruments like ULIPs, which are rather complicated.

One can save tax by investing in Bank Tax Savings Fixed Deposits, where the only problem is the 5-year lock-in, as compared to three years in ULIPs or ELSS.


* Tax Savings Bank Fixed Deposits are offered by banks

* Investment can be made up to Rs 1 lakh under Section 80C of the IT Act.

* In case of joint accounts, only first holder can avail tax benefit.

* Interest earned is taxable.

* No sweep-in facility.

* No overdraft facility.

It's pertinent to note that tax would be deducted at source (TDS), as in the case of normal FDs, where an interest in excess of Rs 10,000 is subject to TDS.

One can also apply for exemption on TDS if total income does not fall within the taxable limit. This can be done by submitting form as per Income Tax Act.

Banks offering Tax Savings Fixed Deposits.

Name of the Bank Interest rates
HDFC 8.75%
ICICI 8.50%
BOM 8.75%
SBI 8.50%
PNB 8.50%
Axis Bank 9.00%
Kotak Bank 8.50%

Read more about: tax fixed deposits
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more