News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax | PPE Safety Kit SITRA Approved | PPE Safety Kit
Top Headlines »
 ITR filing date for FY19 extended: Here's how to do it online
 5 Common Mistakes That Can Draw Income Tax Notice ITR Filing
 Income-tax (18th Amendment) Rules, 2020
 10 tax-saving fixed deposits that offer the best interest rates
 ​Amendment of rule 31​​AA, Form 27EQ
 CBDT extends FY19 income tax return filing deadline till September 30
 7 Money and tax tasks you should complete by July 31, 2020
  5 deadlines that end on July 31 ITR filing to investing for claiming deduction
 Who is eligible to file which tax return for FY 2019-20? ITR form
 How you can check your income tax refund status Income Tax Refund
  How to save tax on sale of residential property All you need to knowa
 How to save enough to make tax-saving investments
 5 important tax-related dates for FY 2019-20 you should know
 How new Form 26AS will help in reducing errors when filing ITR

10 tax-saving fixed deposits that offer the best interest rates
July, 31st 2020

Investments up to Rs 1.5 lakh can be claimed for deduction under section 80C of the income tax act

The bank fixed deposit (FD) has been the most preferred investment option in India. Investors of all age groups love to park their savings in this investment avenue, given that FDs are safe and returns are certain.

Certain conservative investors prefer tax-saving FDs for taking the section 80C deduction benefit. Investments up to Rs 1.5 lakh can be claimed for deduction under section 80C of the income tax act. Tax saving FDs have a lock-in period of five years and premature withdrawals are not allowed.

In these uncertain COVID-19 times, investors are moving away from riskier assets to safer options such as FDs to preserve their capital, despite the steady decline in interest rates over the last one year.


Select private and small finance banks offer better rates

 As many as 10 private banks offer tax-saving FDs with rates of 6 per cent or more.  AU Small Finance Bank tops the chart with 7 per cent interest, followed by private banks such as DCB Bank, IDFC First Bank, IndusInd Bank, Yes Bank and RBL Bank, according to data compiled by BankBazaar.

After allocating to small-savings and other tax saving avenues, investors can park any surplus available in such FDs.

Axis Bank, ICICI Bank offer 5.5 per cent and HDFC Bank offer 5.35 per cent on five-year fixed deposits. State Bank of India (SBI) and Bank of Baroda (BOB) pay 5.40 per cent and 5.30 per cent, respectively.

A sum of Rs 1.5 lakh invested in AU Small Finance Bank’s tax-saving FD grows to Rs 2.12 lakh after five years.

Home | About Us | Terms and Conditions | Contact Us | PPE Kit SITRA Approved | PPE Safety Kit
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting