Tax Saving Fixed Deposit under Section 80C of Income tax is a popular and safe instrument for Tax saving. You can invest maximum of Rs. 1 Lacs in the same.
Below is the list of banks and their respective interest rates offer for general and senior citizens for their Tax Saving FDs.
The best Tax Saving Fixed Deposit Interest offered is 9.5% for General by Tamilnad Mercantile Bank, State Bank of Bikaner and Jaipur, United Bank of India and Dhanalakshmi Bank; while its 10% for Senior Citizens by Tamilnad Mercantile Bank and City Union Bank.
The list is sorted in alphabetical order and highlighted best interest offes.
|Bank of Baroda||9.00||9.00|
|Bank of India||9.00||9.50|
|Bank of Maharashtra||9.00||9.50|
|Catholic Syrian Bank||8.50||9.50|
|Central Bank of India||8.50||9.00|
|City Union Bank (CUB)||9.25||10.00|
|Development Credit Bank||9.00||9.50|
|Indian Overseas Bank||9.00||9.50|
|ING Vysya Bank||9.00||9.50|
|Karur Vysya Bank||9.00||9.50|
|Lakshmi Vilas Bank||9.30||9.80|
|Oriental Bank of Commerce||9.05||9.55|
|Punjab and Sind Bank||8.75||9.75|
|Punjab National Bank||9.00||9.50|
|South Indian Bank||8.75||9.50|
|State Bank of Bikaner and Jaipur||9.50||9.75|
|State Bank of Hyderabad||9.00||9.70|
|State Bank of India (SBI)||9.00||9.75|
|State Bank of Mysore||9.00||9.75|
|State Bank of Patiala||9.25||9.75|
|State Bank of Travancore||9.25||9.75|
|Tamilnad Mercantile Bank||9.50||10.00|
|Thane Janata Sahakari Bank||9.00||9.25|
|The Ratnakar Bank||9.00||9.50|
|Union Bank of India||9.00||9.50|
|United Bank of India||9.50||9.75|
Source: Bank Websites ; Updated: August 06, 2012
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- Deposits cannot be withdrawn prematurely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!