Sunday, January 6, 2013

Best Tax Saver FD Interest Rates

As we approach the end of 2012, tax saving instruments would become more prominent. One of the popular tax saving instruments under Section 80c is 5 year fixed deposit. Interest rates have come down since last one year. Most banks are offering 9% interest rate. For Senior Citizen, it is even higher by 25 basis points to 75 basis points.

There is a lock in period of 5 years in case of tax saver FD. In the case of joint holder deposit, the deduction from income under section 80C of the act shall be available only to the first holder of the deposit. The minimum amount accepted by most banks is Rs 100, and in multiples of Rs. 100 can invest maximum amount  of Rs. 1 Lakh.

We will list down the interest rates offered by banks for tax saving fixed deposits.

For general citizens,
Banks offering 8.50% tax saver FD: ICICI Bank, HDFC Bank, Canara Bank, Syndicate Bank, Kotak Bank, SBI
Banks offering 8.75% tax saver FD: Yes Bank, Corporation Bank
Banks offering 9.00% tax saver FD: Bank of India, Dena Bank, Bank of Baroda, Canara Bank, Indian Overseas Bank, Karnataka Bank, IDBI Bank
Banks offering 9.25% tax saver FD: TamilNad Mercantile Bank
Banks offering 9.50% tax saver FD: Deutsche Bank, City Union Bank

For senior citizens,
Banks offering 9.00% tax saver FD: Canara Bank, Syndicate Bank, Kotak Bank, SBI
Banks offering 9.25% tax saver FD: ICICI Bank, HDFC Bank, Corporation Bank
Banks offering 9.50% tax saver FD: Yes Bank, Bank of Baroda, Karnataka Bank, TamilNad Mercantile Bank, City Union Bank, Deutsche Bank
Banks offering 9.70% tax saver FD: Bank of India
Banks offering 9.75% tax saver FD: Dena Bank, Indian Overseas Bank, IDBI Bank

To check other tax saving instruments under Section 80c, click here!

To know interest rates for regular fixed deposits, refer the post here!


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