It’s time to submit investment proofs to your employer to save on taxes. And the tax-saving 5-year Bank Fixed Deposits (FDs) is a good option for those in lower to medium tax bracket. It offers Section 80C tax deduction benefit, up to an investment of Rs. 1.5 lakh.
• Among the least risky options
• Tenure: 5 years
• Premature withdrawals are not allowed.
• Interest in this investment is taxable.
Below are the best interest rates offered by India’s largest banks by deposits. Source: BankBazaar.com. Data as of December 22, 2023.

 

2/11

HDFC Bank
Interest rate on the 5-year tax-saving FDs: 7%

 

3/11

ICICI Bank
Interest rate on the 5-year tax-saving FDs: 7%

 

4/11

Axis Bank
Interest rate on the 5-year tax-saving FDs: 7%

 

5/11

Canara Bank
Interest rate on the 5-year tax-saving FDs: 6.7%

 

6/11

Union Bank Of India
Interest rate on the 5-year tax-saving FDs: 6.7%

 

7/11

State Bank Of India
Interest rate on the 5-year tax-saving FDs: 6.5%

 

8/11

Punjab National Bank
Interest rate on the 5-year tax-saving FDs: 6.5%

 

9/11

Bank Of Baroda
Interest rate on the 5-year tax-saving FDs: 6.5%

 

10/11

Indian Bank
Interest rate on the 5-year tax-saving FDs: 6.25%

 

11/11

Bank Of India
Interest rate on the 5-year tax-saving FDs: 6%