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Check Interest Rates Offered By Banks On Income Tax-Saving Fixed Deposit (FD)

Check Interest Rates Offered By Banks On Income Tax-Saving Fixed Deposit (FD) :

According to the current Income Tax (I-T) law, a taxpayer can claim maximum tax deductions of up to Rs. 1.5 lakh under Section 80C in a financial year.

A maximum investment of Rs1.5 lakh in a financial year is allowed in income tax-saver five-year FD.

Income tax-saving fixed deposit (FD), a special category of FD, help investors claim deductions under Section 80C of the Income Tax Act. According to the current Income Tax (I-T) law, a taxpayer can claim maximum tax deductions of up to Rs. 1.5 lakh under Section 80C in a financial year. From state-run State Bank of India (SBI) to private sector peers HDFC Bank and ICICI Bank, major commercial banks pay interest at the rates of 6.60-7.00 per cent to the general public, and 7.10-7.75 per cent to senior citizens, on tax-saving fixed deposits, according to their websites.

Given below are key things to know about Income tax-saving fixed deposit (FD) accounts:

Tenure

Also known as tax-saving fixed deposit or tax-saving FD, this special type of fixed deposit scheme allows a minimum maturity period of five years and a maximum of 10 years.

Interest rates

Here’s a comparison of interest rates offered by major banks on income tax-saving FDs of up to Rs. 2 crore:

Bank Interest rate
General public Senior citizen
State Bank of India 6.60% 7.10%
HDFC Bank 7.00% 7.50%
ICICI Bank 7.25% 7.75%

(As mentioned on their websites)

Premature withdrawal

Lenders do not allow premature withdrawal from this type of FD accounts before completion of the lock-in period of five years.

Investment limit

A maximum investment of Rs. 1.5 lakh in a financial year is allowed in income tax-saver five-year fixed deposit. SBI allows a minimum deposit of Rs. 1,000 for investment in its tax-saving scheme, according to the bank’s website – sbi.co.in. Any amount in the multiple of Rs. 1,000 not exceeding Rs. 1.5 lakh a year is allowed by the bank.

#Source:

https://www.ndtv.com/business/income-tax-saving-fixed-deposit-fd-account-latest-interest-rates-of-sbi-hdfc-bank-icici-bank-in-july-2075889

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