Its last month of the Financial Year and in case you have not yet invested completely for your 1 Lakh Tax exemption u/s 80C and looking for Tax Saving Fixed Deposit (FD) Schemes, here is the list of top 30 banks with their Interest Rates.
The best Tax Saving Fixed Deposit Interest offered is 9.50% for General Public by City Union Bank and Tamilnad Mercantile Bank.
The best Senior citizens Tax Saving Fixed Deposit Interest offered is 9.75% by Tamilnad Mercantile Bank, Axis Bank and IDBI Bank.
The list is sorted in alphabetical order and highlighted best interest offers.
|Bank||Scheme Name||General Public||Senior Citizens|
|Allahabad Bank||Tax Benefit Term Deposit Scheme||8.75%||8.75%|
|Andhra Bank||AB Tax Saver||9.00%||9.50%|
|Axis Bank||Axis Tax Saver||9.00%||9.75%|
|Bank of Baroda||BOB Tax Saver||9.00%||9.50%|
|Bank of Maharashtra||Tax Saving Scheme||9.00%||9.50%|
|Canara Bank||Canara Tax Saver Scheme||9.05%||9.55%|
|City Union Bank||CUB Tax Saver Scheme||9.50%||9.50%|
|Corporation Bank||Corp Tax Saver||8.75%||9.55%|
|Dena Bank||Dena Maha Tax Bachat Yojana||9.00%||9.50%|
|HDFC Bank||Tax Saving Fixed Deposit||8.75%||9.25%|
|ICICI Bank||Tax Saver FD 80C||8.50%||9.25%|
|IDBI Bank||Suvidha Tax Saving Fixed Deposits||9.00%||9.75%|
|Indian Bank||IB Tax Saver Scheme||9.00%||9.50%|
|Indian Overseas Bank||IOB Tax Saver||9.00%||9.50%|
|IndusInd Bank||Indus Tax Saver Scheme||8.75%||9.25%|
|Karnataka Bank||KBL Tax Planner||9.00%||9.50%|
|Oriental Bank of Commerce||OBC Tax Saving Term Deposit||9.00%||9.50%|
|Punjab & Sindh Bank||PSB Fixed Deposit Tax Saver||9.05%||9.55%|
|Punjab National bank||PNB Tax Saver FD||8.75%||9.00%|
|South Indian Bank||Tax Gain||8.75%||9.25%|
|State Bank of Bikaner and Jaipur||SBBJ Tax Saver Deposit||9.00%||9.50%|
|State Bank of Hyderabad||Tax Saver||9.00%||9.50%|
|State Bank of India||SBI Tax Saving Scheme||8.75%||9.00%|
|Syndicate Bank||SyndTaxShield Deposit||8.50%||9.00%|
|Tamilnad Mercantile Bank||TMB Tax Saving FD||9.50%||9.75%|
|The Karur Vysya Bank Limited||KVB to Tax Shield||8.75%||9.00%|
|The Lakshmi Vilas Bank||Lakshmi Tax Saver Deposit||9.00%||9.25%|
|UCO Bank||UCO Tax Saver Deposit Scheme||8.75%||9.25%|
|United Bank of India||United Tax Saving Deposit Scheme||8.75%||9.25%|
|Yes bank||Tax Saver||8.75%||9.50%|
Source: Bank Websites Last Updated: March 5, 2013
Key Points – Tax Saving FDs:
- Deposits are accepted for a period of 5 years only
- Interest rate as applicable from time to time for 5 years to term deposits. Senior citizens are entitled for additional interest as applicable.
- Depositor can opt for either cumulative or non-cumulative way of crediting periodical interest.
- Depositor gets benefit U/s.80C of the Income Tax Act. 1961
- Minimum deposit is Rs.100 and in multiples thereof
- Maximum deposit in a Financial Year Rs.1,00,000/- [i.e., 1 st April to 31 st March of the following calendar year]
- Deposits cannot be withdrawn prematurely
- Deposits cannot be pledged to secure loan or as security
Disclaimer: We have tried to keep interest rates up to date, but as these change frequently you are advised to check with the bank before investing. Also it would be great if you can point out any errors through comments or email!