Tax-saving fixed deposits are a good option for risk-averse investors and people who pay less in taxes.
If you haven’t started tax planning, now is the moment since March 31 — the deadline for making tax-saving investments for the financial year 2023–24 — is approaching quickly. Additionally, most firms will request that their workers show documentation of their investments in January or February. Consider your financial objectives while making investments. By contributing to existing obligations, such as your Public Provident Fund (PPF), National Pension Scheme (NPS), Sukanya Samriddhi Yojana (SSY), monthly SIP in equity-linked savings schemes (ELSS), Employees’ Provident Fund (EPF), or by paying life insurance, you can achieve your tax-planning goals.
Low-tax payers and risk-averse investors might consider tax-saving fixed deposits (FDs). Following the Reserve Bank of India’s (RBI) six straight increases to the repo rate during the previous fiscal year, some banks increased their interest rates on tax-saving FDs.
The interest rate of the top 20 banks (according to their total term deposit position declared with the RBI as of March 31, 2022) is the primary criterion for determining these institutions. BankBazaar has collated the information. Banks whose website data was unavailable were not taken into account. The data only includes tax-saving FDs (for non-senior people) with a 5-year term and quarterly interest compounding across the board.
On tax-saving deposits, IndusInd Bank and Yes Bank provide interest rates of up to 7.25 percent. These institutions have the best interest rates among the private banks. In five years, an investment of Rs 1.5 lakh will increase to Rs 2.15 lakh.
On tax-saving deposits, top private banks like HDFC Bank, ICICI Bank, and Axis Bank provide interest rates of up to 7%. In five years, an investment of Rs 1.5 lakh will increase to Rs 2.12 lakh.
On tax-saving deposits, Union Bank of India and Canara Bank provide interest rates of up to 6.7 percent. These banks provide the best interest rates among the public sector banks.
On tax-saving deposits, Federal Bank provides interest rates of up to 6.6 percent. In five years, an investment of Rs 1.5 lakh will increase to Rs 2.08 lakh.
The State Bank of India (SBI) and Bank of Baroda, two prominent public sector banks, provide interest rates up to 6.5 percent on tax-saving deposits. Punjab National Bank, Indian Bank, Indian Overseas Bank, and IDBI Bank are more financial institutions that provide interest rates on tax-saving deposits that may reach 6.5 percent. In five years, an investment of Rs 1.5 lakh will increase to Rs 2.07 lakh.
Fixed deposit investments up to Rs 5 lakh are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI.
