Tuesday, May 7, 2019

Best Tax Saver FD Interest Rates

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 7-8% 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. 1.5 Lakh.

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

  Regular          Senior            Citizen
Lakshmi Vilas Bank 7.85% 8.45%
City Union Bank 7.50% 7.50%
IDFC 7.75% 8.25%
ICICI 7.25% 7.75%
HDFC 7.25% 7.75%
Axis 7.25% 7.75%
IDBI 6.85% 7.35%
Kotak Bank 7.00% 7.50%
PNB 6.25% 6.75%
BOI 6.75% 7.00%
Oriental 6.50% 7.00%
Canara 6.50% 7.00%
SBI 6.85% 7.30%
BOB 7.00% 7.20%
Citibank 6.00% 6.50%
IndusInd 7.50% 8.00%
Yes   7.25% 7.75%

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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  1. Could you please also share the latest interest rates for the year 2012

  2. Karan - Thanks for pointing out. We have updated the interest rates for tax saver FDs. Hope this helps!

  3. thanks
    can u tell me the difference b.w FD and tax saving F.D

  4. Unni,

    With normal FDs, you will not be able to claim tax benefit. With Tax saving FDs which are 5 years FDs, you will be able to claim tax benefit under Section 80c of Income Tax. Under Section 80c, you can claim deduction of Rs 1 Lac from your taxable income if you invest in some specific instruments like Tax Saving FDs.

    Hope this helps!