Tax saving fixed deposits: SBI vs HDFC Bank vs ICICI Bank vs Axis Bank. Which bank offers highest interest rate?

Tax-saving fixed deposits (FDs) are among the savings options that offer tax benefits under Section 80C. An investor can deduct up to 1.5 lakh by investing in tax-saving FDs.

What are tax saving FDs?

The maturity period of tax saving BD is 5 years. The interest earned from tax saving FDs is taxable. Premature withdrawal is not possible in tax saving FDs and you cannot take loan against tax saving FDs.

A look at the interest rates offered by the country’s largest lenders such as State Bank of India (SBI), HDFC Bank, ICICI Bank, and Bank of Baroda (BoB)

Latest rates of SBI tax saving FDs

SBI offers an interest rate of 6.5% for general customers and 7% for senior citizens on its tax saving FDs. The minimum deposit in SBI income tax saving FD is 1,000 and multiples thereof but the maximum deposit should not exceed 1,50,000 in a year.

Latest rates of HDFC Bank tax saving FDs

HDFC Bank allows opening of tax saving deposits with a minimum amount of 100. HDFC Bank offers fixed deposits of maturity up to 10 years. The bank is offering 7% interest rate on tax saving FDs. Seniors receive an additional 50 basis points on these deposits.

Latest rates of ICICI Bank tax saving FDs

ICICI Bank offers an interest rate of 7% for general customers and 7.5% for senior citizens on BDs with a maturity of five to 10 years. It is the minimum amount required to open ICICI Bank tax saving BD 10,000, but the maximum deposit should not exceed 1,50,000 in a year.

On BDs maturing between five and ten years, BoB offers an interest rate of 6.5% for general customers and 7.15% for senior citizens.

Latest rates of Axis Bank tax saving FDs

On FDs maturing between five and ten years, Axis Bank gives 7% to the general public and 7.75% to senior citizens

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Updated: 16 November 2023, 03:01 IST

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