When it comes to tax saving as well as solid returns, one of the most popular options among tax savers is investing in a tax-saving Fixed Deposit (FD). Tax saving fixed deposits offer tax exemption under section 80C 1.5 lakh per annum in case of only one account and has a lock-in period of 5 years. Investors should be aware that interest earned on tax-saving deposits is taxable depending on the tax slab, and interest earned or reinvested on tax-saving FDs is Rs.40,000/- for regular customers and Rs. TDS will be deducted on reaching Rs.50,000/-. – For senior individuals in a financial year. As the interest rates in the economy are now rising after the central bank raised the repo rate to 4.90 per cent, investing in tax-saving fixed deposits can be a good option for those looking to make long-term deposits of 5 per cent. Huh. Years without making premature withdrawals while looking to save tax. As a result, based on our study, below are three private banks offering up to 7.10% returns on tax-saving fixed deposits to elderly people.
DCB Bank
DCB Bank offers a tax-saving fixed deposit option in which investors can make a minimum deposit of Rs. 1000 and maximum investment of Rs.150,000. One can deposit money in a DCB Bank tax-saver FD for 5 years or more, and as per the guidelines, premature withdrawal is not allowed. As of May 21, 2022, DCB Bank offers 7.10 per cent interest rate on tax-saving fixed deposits to seniors, while regular customers will get 6.60 per cent interest rate. DCB Bank does not allow auto-renewal on tax-saving fixed deposits, and no loan can be taken against the account.
Yes Bank
Yes Bank tax-saving fixed deposit has a minimum deposit requirement 1000 and maximum deposit limit 150,000 in a financial year. This tax saving deposit program has a lock-in period of 5 years and nomination facility. Yes Bank offers tax-saving fixed deposit accounts that can be opened via internet banking, phone banking or at a local branch. Yes Bank offers 7.00 per cent return on tax-saving fixed deposits to old residents, while regular customers get 6.25 per cent return with effect from June 6, 2022. These interest rates have monthly or quarterly payment options, and the account balance can be reinvested at maturity.
RBL Bank
RBL Bank Tax Savings Fixed Deposit Accounts can be opened with an amount ranging from Rs. 100 to Rs. 1,50,000 in multiples of Rs. 100. RBL Bank Tax Saving Fixed Deposit has a lock-in period of 60 months and a nomination option. As the name implies, the RBL Bank Tax Savings Deposit Program does not enable partial or premature withdrawal, and in case of joint deposits, tax benefits under 80C will be available to the primary holder only. RBL Bank currently offers 6.80 per cent return on its tax-saving FD scheme to elderly citizens and 6.30 per cent return to regular consumers. These interest rates are effective from 8 June 2022.
Source: The interest rates are taken from the official websites of banks.