Fixed deposit schemes have been the most preferred form of investment for Indian investors. Compared to equities and other investment instruments, FDs offer a stable and guaranteed rate of return. And with tax-saving FD schemes, investors also have the option to save some extra cash. Tax saving FD options are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. With investment in tax saving FDs, you can claim a tax deduction of up to Rs 1.5 lakh per financial year. These FDs have a minimum lock-in period of 5 years and the interest earned on them is taxed as per the tax bracket of the investor. If the investment is made jointly, then only the first holder listed on the FD receipt will be eligible for tax benefits.
Investors have the option to choose between cumulative and non-cumulative interest options on tax saving FDs. As per the provision of income tax laws in India, only individuals and Hindu Undivided Family (HUF) can invest in tax-saving FDs. Investors can open a tax-saving FD with any bank after fulfilling their eligibility criteria (if any). Here we are listing some of the banks that are offering the highest rate of return on such FDs.
Industrieind Bank
IndusInd Bank offers an interest rate of 6.5 percent on taxable investments for 5 years. However, senior citizens get an additional 0.5 percent return on this scheme.
RBL Bank
For FDs of 2 to 3 years, RBL Bank gives its highest rate of return of 6.5 per cent, but on tax saving schemes, the interest is slightly lower at 6.3 per cent. Senior citizens get 6.8 return on their investment in tax saving FD of RBL Bank
IDFC
IDFC First Bank has a return rate of 6.25 per cent on Tax Saver Deposits for deposits below Rs 2 crore. Senior citizens are eligible for an additional 0.5 percent return.
DCB Bank
DCB Bank offers an interest rate of 5.95 per cent on its tax saving FD scheme. Investors can choose to make quarterly compound payments of interest earned on investments
Karun Vysya Bank
Karun Vysya Bank’s Tax Shield FD scheme offers a return rate of 5.9 per cent on all deposits below Rs 2 crore.
So, if you have surplus cash, you can choose to invest in any of these tax-saving FDs.
Read minute-by-minute news updates for Uttar Pradesh Election Result 2022, Punjab Election Result 2022, Uttarakhand Election Result 2022, Manipur Election Result 2022And Goa election result 2022,
Click here for seat-wise LIVE result Updates.