Income tax-saving fixed deposits (FDs) are among the savings options that offer tax benefits under Section 80C. An investor can claim a deduction of up to ₹1.5 lakh by investing in tax-saving FDs.
What are tax-saving FDs?
The maturity period of a tax-saver FD is 5 years. The interest earned from tax-saver FDs is taxable. Premature withdrawal cannot be done in tax-saving FDs and you cannot get a loan against tax-saver FDs.
A look at the interest rates offered by the country’s largest lenders like the State Bank of India (SBI), HDFC Bank, ICICI Bank, and Bank of Baroda (BoB)
SBI tax-saving FDs latest rates
SBI offers an interest rate of 6.5% for general customers and 7% for senior citizens on its tax-saving FDs. The minimum deposit in an SBI income tax saving FD is ₹1,000 and in multiples thereof whereas the maximum deposit should not exceed ₹1,50,000 in a year.
HDFC Bank tax-saving FDs latest rates
HDFC Bank allows the opening of tax-saving deposits with a minimum amount of ₹ 100. HDFC Bank offers fixed deposits of maturity of up to 10 years. The bank is offering an interest rate of 7% on tax-saving FDs. Senior citizens get 50 basis points extra on these deposits.
ICICI Bank tax-saving FDs latest rates
ICICI Bank offers an interest rate of 7% to general customers and 7.5 % to senior citizens on FDs with maturity between five years and 10 years. The minimum amount required for opening an ICICI Bank tax-saving FD is ₹10,000, whereas the maximum deposit should not exceed ₹1,50,000 in a year.
On FDs maturing between five years and ten years, BoB offers an interest rate of 6.5 % to general customers and 7.15% to elderly people.
Axis Bank tax-saving FDs latest rates
On FDs maturing between five years and ten years, Axis Bank gives 7% to the general public and 7.75% to senior citizens
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Updated: 16 Nov 2023, 03:01 PM IST