Tax-Savings FD Rate: All small finance banks, foreign banks and small-private sector banks are giving up to 7.4 percent interest on tax-saving FDs. The figures we are giving here are based on the details of BankBazaar.
Tax-Savings FD rates : RBI has increased the repo rate by 90 basis points i.e. 0.90 percent so far in this financial year, due to which the repo rate has come down to 4.9 percent. All banks like HDFC Bank, ICICI Bank and Deutsche Bank have increased the interest rates on their tax-saving fixed deposits after this move of RBI. All small finance banks, foreign banks and small-private sector banks are offering up to 7.4 per cent interest on tax saving FDs. The figures we are giving here are based on the details of BankBazaar.
It should be noted that under Section 80C of the Income Tax Act, tax exemption can be claimed on investments up to Rs 1.5 lakh, but investors would be advised not to invest in tax saving fixed deposits just to save tax. Investing in tax saving FDs should be done keeping in mind your financial plan. Please note that tax saving FDs have a lock-in period of 5 years. In this, you do not have the freedom to withdraw money before the maturity period. Let’s have a look at these FDs.
Ujjivan Small Finance Bank is offering 7.4 percent interest on its tax saving fixed deposits. Ujjivan Small Finance Bank has the highest interest rate among all small finance banks. The amount of Rs 1.5 lakh deposited in its tax saving fixed deposit will become 2.16 lakh in 5 years.
Deutsche Bank- Deutsche Bank is offering 7 percent interest on its tax saving fixed deposits. In foreign banks, this bank is giving better interest on tax saving fixed deposits. By depositing Rs 1.5 lakh deposited in this bank tax saving fixed deposit, you will get Rs 2.12 lakh in 5 years.
AU Small Finance Bank – is offering 6.9 percent interest on tax saving fixed deposits. By depositing Rs 1.5 lakh deposited in this bank’s tax saving fixed deposit, you will get Rs 2.11 lakh in 5 years.
Suryoday Small Finance Bank – is offering 6.75 percent interest on tax saving fixed deposits. By depositing Rs 1.5 lakh deposited in this bank’s tax saving fixed deposit, you will get Rs 2.10 lakh in 5 years.
DCB Bank is offering 6.6 percent interest on tax saving fixed deposits. By depositing Rs 1.5 lakh deposited in this bank’s tax saving fixed deposit, you will get Rs 2.08 lakh in 5 years.
IndusInd Bank and Yes Bank – is offering 6.5% interest on tax saving fixed deposits. On depositing Rs 1.5 lakh deposited in this bank’s tax saving fixed deposit, you will get Rs 2.07 lakh in 5 years.
Apart from this, many small banks are offering to pay higher interest on fixed deposits to get more and more new deposits. It should also be noted that Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of RBI, guarantees investment in fixed deposits up to Rs 5 lakh.
