Best FD Rates with Tax Saving Option: Double benefits can be availed by investing in tax-saving FD. By investing safely in FD, you will not only get the benefit of interest but also avail the benefit of tax savings.
If you want to save tax by investing in fixed deposits, then you can choose the path of tax-saving FD. A maximum of Rs 1.5 lakh can be invested in tax-saving FD. Tax-saving FDs have a lock-in period of up to 5 years. Through this type of tax-saving FD, a maximum tax saving of Rs 1.5 can be made under Section 80C of the Income Tax Act.
But, remember that only people paying tax under the old tax system can get the benefit of Section 80C. There is no tax exemption under section 80C in the new tax system.
Next, we are telling you about the tax-savings FDs that offer the highest interest rates. If your age is more than 60 years i.e. you are a senior citizen then you are going to get a special interest rate offer. This interest offer is on fixed deposits up to Rs 2 crore.
DCB Bank Tax-Saving FD Rates:
DCB Bank is offering interest at the rate of 7.4% to the common people on Tax Savings FD.
IndusInd Bank Tax-Saving FD Rate: IndusInd Bank is offering interest at the rate of 7.25% on tax-saving FD. This offer is on FD with a tenure of 5 years.
Yes Bank Tax-Saving FD Rate:
Private sector Yes Bank is offering interest at the rate of 7.25% on tax-saving FD. We have already told that the tenure of this FD is for 5 years.
Axis Bank Tax-Saving FD Rate:
This bank, one of the largest banks in the private sector, is offering interest at the rate of 7% on tax-saving FD.
HDFC Bank Tax-Saving FD Rate:
HDFC Bank, one of the top banks in the country, is also offering interest at the rate of 7% on tax-saving FD with a tenure of 5 years.
| Highest interest tax-saving FD | |
| Bank | Interest |
| DCB Bank | 7.4% |
| IndusInd Bank | 7.25% |
| yes bank | 7.25% |
| Axis Bank | 7% |
| HDFC bank | 7% |
You have to keep in mind that the interest received on these FDs will come under the ambit of tax. Therefore, before investing in these tax saving FDs, it is important to keep three things in mind.
- A maximum of Rs 1.5 lakh can be invested in Tax Savings FD.
- The tenure of tax saving FD is for 5 years. The locking period of these FDs is also for 5 years. This means that they cannot be broken before maturity.
- The interest received on this type of FD is not tax-free. Under Section 80C of the Income Tax Act, tax exemption is available on the principal amount invested in tax-saving FD up to a limit of Rs 1.5 lakh.
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