Some banks of the country are offering excellent interest on tax saving fixed deposits. Apart from this, you can also save tax up to Rs 1.5 lakh annually.
By investing in bank fixed deposits, you can save tax along with earning high interest. Top banks of the country are giving these offers to those investing in fixed deposits (FDs). Tax Saving: Under Section 80C of the Income Tax Department, you can avail tax exemption of Rs 1.5 lakh annually. However, only those in the old tax regime can avail tax exemption. Besides, interest on FD is also guaranteed up to 7 percent.
What is tax saving FD?
Tax saving FD comes with a lock-in period of five years. Withdrawal of money is not allowed during this period. If someone wants to avail tax exemption and returns then he can opt for this tax saving FDs. Individuals and HUFs are eligible under this tax saving scheme. Under this, TDS charge does not have to be paid. Higher interest is available on this FD for senior citizens.
Children can also open an account.
If a minor wants to open an account in this tax saving FD, then he can invest in tax saving FDs jointly with the parents in his name. You can also save tax on this. Loan facility is not provided under this scheme. All banks provide minimum amount for investing in tax saving FDs.
Which bank is giving the highest interest on tax saving?
- From SBI to HDFC banks are giving huge interest on tax saving fixed deposits. You can also save Rs 1.5 lakh annually with interest on these FDs. Let us know where you will get the highest interest.
- SBI Bank is offering 6.50 percent interest under tax saving FD.
- Canara Bank is offering 6.70 percent interest on tax saving FD.
- PNB is offering 6.50 percent interest on tax saving FD.
- Similarly, HDFC Bank, ICICI Bank, Yes Bank and Axis Bank are offering 7 percent interest on tax saving FD.
