The investment made in Tax Saving Fixed Deposit is not only safe but also gives good returns. The lock in period of tax saving FD is 5 years. This means that you cannot withdraw the money invested in it for 5 years.
New Delhi. If you are looking for guaranteed returns without taking any risk, then you can invest in tax saving FDs. You can claim income tax deduction under section 80C of the Income Tax Act by investing Rs 1.5 lakh in this FD. If your total annual income is more than 10 lakhs then you can increase your income tax savings up to 46,800. The lock in period of tax saving FD is 5 years. This means that you cannot withdraw the money invested in it for 5 years.
According to a report in Live Mint, Aditya Shetty, CEO, BankBazaar.com, says that the tax savings from funds invested in tax saving FDs will vary depending on the tax bracket. A person in the 30% income tax net can claim a tax deduction of Rs 46,800. Similarly, if a person paying 20% income tax invests Rs 150,000 in a tax saving FD, then he can save Rs 31,200 in tax annually. Good interest is also available in tax saving FD. Let us know how much interest the major banks are paying.
Which bank is paying how much interest
IndusInd Bank: IndusInd Bank is currently paying interest at the rate of 6.75 per cent per annum on tax saving FDs. Yes Bank is also paying only 6.75 percent interest on tax saving FD.
DCB Bank: Private sector bank DCB is also giving good returns on tax saving FDs. At present, the bank is giving interest at the rate of 6.60 percent on this FD.
RBL Bank: RBL Bank is offering 6.55 percent interest to customers on Tax Saving FD. Similarly, if you make a tax saving FD in IDFC First Bank, then you will get 6.50 percent interest.
Indian Overseas Bank: Indian Overseas Bank of the public sector is paying an annual interest rate of 5.85 percent to the customers on tax saving FD.
Canara Bank: Canara Bank is offering its customers an interest rate of 5.75 per cent on tax saving FDs. Punjab National Bank is also offering 5.75 percent interest on tax saving FDs.
Union Bank: If you make a tax saving fixed deposit in Union Bank, a leading public sector bank, then you will get interest at the rate of 5.75 percent only. Similarly, State Bank of India is offering 5.65 percent interest on tax saving FDs to its customers.
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