Fixed Deposit: Fixed Deposit schemes have been the most preferred investment option for Indian investors.
Fixed Deposit: Fixed Deposit schemes have been the most preferred investment option for Indian investors. FDs offer a stable and guaranteed return as compared to equity and other investment instruments.
Apart from this, with tax saving FD schemes, investors also get a chance to save some extra cash. Tax saving FD options are eligible for tax benefits under Section 80C of the Income Tax Act 1961.
Along with investing in tax saving FDs, you can also claim a tax deduction of Rs 1.50 lakh every single year. These FDs have a lock-in period of 5 years. The interest earned thereon is taxed as per the tax bracket.
Investors have the option to choose between cumulative and non-cumulative interest options in tax saving FDs. As per the provision of income tax laws in India, only individuals and Hindu Undivided Families (HUFs) can invest in tax saving FDs.
Investors can open a tax saving FD with any bank after fulfilling their eligibility. Here we are giving a list of some such banks which are giving maximum returns on such FDs.
IndusInd 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 less than 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 opt for quarterly compounding payment of interest earned on investment
Karun Vaisya Bank
Karun Vysya Bank’s Tax Shield FD scheme offers 5.9 per cent interest on all deposits below Rs 2 crore. If you have surplus cash, you can invest in any tax saving FD.
