Amidst the low interest rates, small finance banks and small private banks offer interest rates up to 6.75 per cent on tax-saving FDs, according to data compiled by media report.
Reducing tax should always be your priority and not a task to be completed by the end of the financial year. Invest wisely keeping in mind your financial goals. Amidst the low interest rates, small finance banks and small private banks offer interest rates up to 6.75 per cent on tax-saving FDs, according to data compiled by BankBazaar. Here are the best interest paying banks on tax saving deposits.
Tax deduction can be claimed on investments up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Tax saving FDs have a lock-in period of five years and premature withdrawal is not allowed.
Suryoday Small Finance Bank offers an interest rate of up to 6.75 percent on tax saving deposits. Among small finance banks, Suryoday offers the best interest rates. An investment of Rs 1.5 lakh grows to Rs 2.10 lakh in five years.
Ujjivan Small Finance Bank also offers an interest rate of up to 6.40 percent on tax saving deposits. An amount of Rs 1.5 lakh becomes Rs 2.06 lakh in five years.
RBL Bank is offering interest rates up to 6.3 per cent on Tax Saving Deposits. The amount of Rs 1.5 lakh increases to Rs 2.05 lakh in five years.
Deutsche Bank, IDFC First Bank and Yes Bank offer up to 6.25 percent on tax saving deposits. Among foreign banks, Deutsche offers the best interest rate. With these banks, the amount of Rs 1.5 lakh increases to Rs 2.05 lakh in five years.
IndusInd Bank is offering interest rates up to 6 percent on tax saving deposits. The amount of Rs 1.5 lakh increases to Rs 2.02 lakh in five years.
Small private banks and small finance banks are offering higher interest rates for raising fresh deposits. Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of RBI, guarantees investment in fixed deposits up to Rs 5 lakh. Meaning if your money sinks then you will get it.
This information has been given on the basis of data compiled till 25 January 2022 from the websites of the respective banks. BankBazaar has only accounted for FDs relating to foreign, private, small finance and public sector banks that are listed on the Bombay Stock Exchange. Banks whose data is not available on their respective websites were not considered. These rates are only for tax saving five-year FDs for non-senior citizens.
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