Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 Release Notes for TallyPrime and TallyPrime Edit Log Release 4.1 | What s New!
 Deadline to file updated ITR FY20-21 ends on March 31: Details on additional tax
 4 tax-planning mistakes to avoid this season
 ITR 2024: Here are 8 ways by which senior citizens can save on taxes this year
 Tax-saving investments for senior citizens: Here are 4 ways to maximise your tax savings
 11 ways of tax savings for salaried individuals for FY 2023-24
 How selling equities before March 31 can help you save income tax
 Income tax benefits for senior citizens on interest income from savings, fixed deposits explained in eight points

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
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting