Tax Saving Fixed Deposit: Here information is given about the tax saving interest rate of many banks like SBI, HDFC Bank, ICICI Bank. Let’s know who is paying more interest.
In order to control the inflation rate, the country’s central bank (RBI) has increased the repo rate six times, due to which the interest rates of bank FDs increased several times. Due to the rapidly increased Fixed Deposit interest rates, some banks are giving good interest to the investors. At the same time, investors are being given more interest than before on Tax Saving Fixed Deposit.
Here is information about tax saving fixed deposits of SBI, HDFC Bank, ICICI Bank and other banks. By comparing these interest, you can know which bank will give you more profit with tax saving. However, before that let us know about tax saving FD.
What is tax saving fixed deposit
Under tax saving FD, along with a fixed return, the benefit of tax exemption is also given. Under this, exemption can be claimed under Section 80C of the Income Tax Act 1961.
Tax Saving Fixed Deposit Features
- Under this FD, an account can be opened on investment ranging from Rs 100 to Rs 1.5 lakh.
- The lock in period is for five years.
- This FD gives interest on monthly or quarterly basis.
- Tax will be applicable on the interest earned.
- The rule of premature withdrawal is not applicable in this.
- There will be an option of joint account in tax saving FD scheme.
Which bank is giving more interest on tax saving FD
SBI Bank is paying 6.50% interest on tax saving FD. On the other hand, HDFC Bank 7%, ICICI Bank 7%, Axis Bank 7%, IndusInd Bank 7.25% and DCB Bank 7.60% are paying interest on five-year tax saving FD.
