Rushing To Save Tax? Here Are Tax-Saving FD Rates Of India's 10 Biggest Banks

The last minute tax saving rush is in full flow, with just about six weeks left for this financial year to end on March 31st 2024. While a lot of us are aware about why ELSS is among the best tax saving investment options, but what if you are a conservative investor? If you do not wish to take risk but at the same time invest your money to save tax, tax saver bank FDs can be a good option.?

So let us explain to you what tax saving bank FDs are and what interest rates are being offered for them by India's 10 biggest banks.

What Are Tax Saving Bank FDs?

tax saver fd/idfc bank

Tax saver bank fixed deposits are FDs that offer tax saving benefits under Section 80C of the Income Tax Act. Tax-saver bank FDs have a lock-in period of 5 years. In terms of capital protection and certainty of return, tax-saving FDs from banks are covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI, for an amount of Rs 5 lakh per bank and per depositor. During lock-in period of five years, the bank FD cannot be withdrawn.??

However, tax-saving bank FDs’ biggest disadvantage lies in the taxability of the interest income. For bank FD investors, including five year tax saving ones, tax liability does not end with a TDS deduction. Interest earned from FDs is included in your annual income and then taxed in accordance with your income tax slab.

Also, unlike regular FDs, most banks usually do not allow you to take a loan against tax saver FD.

Also Read:?PPF vs Bank?Tax Saver FD-Which One To Choose For Tax Saving?

How Much Tax Can You Save Under Bank Tax Saver FDs?

tax saving bank fd/shutterstock

Just like PPF, home loan principal repayment, life insurance premium and many others, you can claim tax deduction of upto Rs 1.5 lakh per financial year for five year tax saver FDs under Section 80C of the Income Tax Act.

Tax Saving FD Rates Of India's 10 Biggest Banks

Here are the tax saving FD rates for India's ten biggest banks (as per their current market cap).

1.HDFC Bank

hdfc bank fd rates/mint

Regular interest rate-7%

Senior citizens rate-7.5%

Tenure-4 Year 7 Months 1 day to 5 Years

2.ICICI Bank?

icici bank fd rates/ET

Regular interest rate-7%

Senior citizens rate-7.5%

Tenure-3 years 1 day to 5 years

3.State Bank Of India

sbi fd rates/ET

Regular interest rate-6.5%

Senior citizens rate-7.5%

Tenure-5 years and up to 10 years

4.Kotak Mahindra Bank

kotak mahindra bank/businesstoday

Regular interest rate-6.2%

Senior citizens rate-6.7%

Tenure-5 years to 10 years

5.Axis Bank?

axis bank fd rates/shutterstock

Regular interest rate-7%

Senior citizens rate-7.75%

Tenure-5 years to 10 years

6.IndusInd Bank?

indusind bank fd rates/outlook

Regular interest rate-7.25%

Senior citizens rate-7.75%

Tenure-Above 3 years 3 months to below 61 months

7.Bank of Baroda?

bank of baroda fd rates/mint

Regular interest rate-6.5%

Senior citizens rate-7.15%

Tenure-Above 3 Years and upto 5 Years

8.Punjab National Bank?

pnb fd rates/TOI

Regular interest rate-6.5%

Senior citizens rate-7%

Tenure-Above 3 years & upto 5 years

9.Union Bank of India

union bank fd rate/toi

Regular interest rate-6.5%

Senior citizens rate-7%

Tenure-Above 3 years to 5 years

10.IDBI Bank

idbi bank fd rates/mint

Regular interest rate-6.5%

Senior citizens rate-7%

Tenure- 5 Years

Also Read;?Smart Ways To Save?Tax?Without Locking Your Money In Investments

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