Did you know that you can save tax by depositing your money in a bank? Banks offer Tax Saving FD schemes for a tenure of 5 years, which could save you up to Rs.1.5 lakh in tax. Moreover, the interest rates offered are quite high. If you’re wondering which government or private banks offer these schemes, we can provide you with a list of interest rates.
Experts recommend that you choose an investment option that will give you the returns you deserve as you grow older. That’s why senior citizens often prefer to invest in avenues that offer stable and safe returns, such as bank fixed deposits.
Additionally, if you’re a taxpayer looking to save tax, you should consider opting for the Tax Saving FD scheme with a tenure of 5 years. However, keep in mind that this benefit is only available to those who have opted for the old tax regime and not under the new tax regime.
Tax Saver FD 2024
By opening a tax-saving fixed deposit account, one can save on interest income as well as taxes. As per Section 80C of the Income Tax Act, 1961, tax savings of up to Rs.1.5 lakh per year can be achieved. The investment in this scheme has a lock-in period of 5 years, which means that it cannot be withdrawn prematurely during this period.
Senior citizens can avail 50 basis points higher interest rates on these schemes as compared to general customers. Here is a list of tax-saving FD interest rates offered by public and private sector banks.
Tax Saving FD Interest Rates 2024 in Private Banks
- Axis Bank- 7.75%
- DCB Bank- 7.90%
- Federal Bank- 6.60%
- HDFC Bank- 7.75%
- ICICI Bank- 7.50%
- IDFC First Bank- 7.50%
- Indus Ind Bank- 7.75%
- Kotak Mahindra Bank- 6.70%
- RBL- 7.60%
Tax Saving FD Interest Rates 2024 in Public Sector Banks
- Bank of Baroda- 7.15%
- Canara Bank- 7.20%
- Indian Bank- 6.60%
- Indian Overseas Bank – 7%
- Punjab National Bank- 7%
- State Bank of India – 7.50%
Please keep in mind that the interest income earned on tax-saving FDs is subject to income tax, and TDS is applicable on the fixed deposit. However, senior citizens can avoid TDS by submitting Form 15H and Form 15G. Additionally, section 80TTB allows senior citizens to make tax savings of up to Rs. 50,000.
To obtain additional information, kindly get in touch with the helpdesk at the designated bank branch.