Fixed deposits in which the depositor gets tax benefits are called tax saving fixed deposits. The interest rates on tax saving fixed deposits differ from bank to bank.
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Fixed deposits in which the depositor gets tax benefits are called tax saving fixed deposits. The interest rates on tax saving fixed deposits differ from bank to bank. Interest rates on tax saving FDs have increased recently. The reason behind this is that after increasing the repo rate of RBI, many banks have increased the interest rates on their fixed deposits. Many banks also give higher interest to senior citizens on tax saving fixed deposits. Let us know which banks have the best interest rate on tax saving FD.
How much to invest?
The minimum investment requirement for tax saving fixed deposits may vary from bank to bank. The lock-in period of tax saving fixed deposit is five to ten years.
Interest Rates on Tax Saving FD
Tax saving FD is the best option for senior citizens who want to save tax through low risk investments. Senior citizens are getting the highest interest rate on tax saving FD in these banks.
DCB Bank
In this private bank, senior citizens will get interest at the rate of 8.10 percent on tax saving FD.
Axis Bank
Axis Bank has an interest rate of 7.75 per cent on Tax Saving Fixed Deposit for senior citizens.
IndusInd Bank
At the same time, in IndusInd Bank, senior citizens will get interest at the best rate of 7.75 percent on tax saving FDs.
AU Small Finance Bank
Senior citizens can also turn to Small Finance Banks to earn more interest on tax saving FDs. AU Small Finance currently offers 7.70% interest rate on tax saving FD for senior citizens.
HDFC Bank
In the country’s largest private bank HDFC Bank, senior citizens are getting 7.50 percent interest rate on tax saving fixed deposits.
A person investing in tax saving fixed deposits can claim a deduction of up to Rs 1.5 lakh under section 80C of the Income Tax Act, 1961.
