Income Tax: Top banks offer these interest rates on tax saving fixed deposits. See details here
fixed deposits to earn assured returns on a regular basis, insulated from wild volatility of markets. Besides regular FDs, investors also explore tax-saving fixed deposits (FDs) for earning higher interest while also saving some money via tax exemption. It is imperative to know that the tax deduction under section 80C is allowed only on the amount deposited in the fixed deposit, while the interest earned on it is taxable.
When you happen to opt for joint deposit, the tax benefit under section 80C is extended only to the first holder of the deposit. It is vital to remember that the minimum amount is ₹100 while the maximum which one can deposit is ₹1.5 lakh in one financial year. HDFC Bank: The largest private lender offers 7.00 percent to its regular citizens.
Senior citizens are entitled to receive an extra 50 basis points. One can opt for both monthly and quarterly payout of interest. ICICI Bank:The second largest private lender offers 7 percent on tax saving FD to regular citizens and 7.50 percent to senior citizens.
The bank enables depositors to opt for monthly or quarterly payout of interest. Kotak Mahindra Bank: The bank offers the same interest as on regular fixed deposits (FDs). On a five-year FD, the private lender offers 6.20 percent interest rate per annum.
State Bank of India (SBI): The largest state lender also offers the same interest rates as on regular fixed deposits, i.e., 6.50 percent per annum. The minimum amount is ₹1,000 and the maximum is ₹1.5 lakh. The longest period of deposit is 10 years.
Read more on livemint.com
