scorecardresearch10 banks offer the highest interest rates on tax-saving fixed deposits

10 banks offer the highest interest rates on tax-saving fixed deposits

Updated: 09 Aug 2022, 02:06 PM IST
TL;DR.
Here we have listed the top ten banks that offer the highest interest rates on tax-saving fixed deposits in India.
Top ten banks offer the highest interest rates on tax-saving fixed deposits in India

Top ten banks offer the highest interest rates on tax-saving fixed deposits in India

Tax-saving fixed deposits are the most secure and safest investment options that not only provide fixed returns but also help investors save income tax via exemption given under section 80C of the Income Tax Act, 1961.

One can simply open a tax-saving fixed deposit account with a minimum deposit amount of 100, and a maximum of 1.5 lakhs. The deposit has a lock-in period of minimum five years. Unlike a regular fixed deposit, a tax-saving fixed deposit does not allow premature withdrawal or loan against it.

In case the deposit account is opened jointly by an account holder and his spouse, the tax benefit is given to the primary holder. Moreover, senior citizens who are aged 60 and above are generally offered higher interest rates on tax-saving fixed deposits.

Here we have listed the top ten banks that offer the highest interest rates on tax-saving fixed deposits.

Name of BanksInterest Rates
Jana Small Finance Bank7.25%
Ujjivan Small Finance Bank7.20%
AU Small Finance Bank6.90%
Suryoday Small Finance Bank6.75%
Utkarsh Small Finance Bank6.75%
RBL Bank6.55%
IDFC First Bank6.50%
IndusInd Bank6.50%
South Indian Bank5.85%
Axis Bank5.75%

Note: Tax saving fixed deposit interest rates as of 4 August 2022

As we can see in the list above, Jana Small Finance Bank and Ujjivan Small Finance Bank offer the highest interest rates of up to 7.25 percent and 7.20 percent respectively for a tax-saving fixed deposit.

So, we can conclude that tax-saving fixed deposits are the best investment option as they offer a guaranteed return on your investment without any element of financial risk.

Article
What are tax saving fixed deposits? 
First Published: 09 Aug 2022, 02:06 PM IST