Tax Saving FDs Interest Rates Benefits SBI HDFC ICICI Axis Bank Through tax saving FD, you can also reduce your tax burden along with savings. In this, you can claim a deduction of up to Rs 1.50 lakh under 80C.
Tax Saving FD is a popular option among risk averse investors today. By investing in this, investors get the benefit of exemption under Section 80C of Income Tax. All big banks including State Bank of India (SBI), HDFC Bank, Axis Bank, ICICI Bank provide these options to their investors.
What is tax saving FD?
Tax saving FD is just like a normal FD. In this also the bank promises investors a fixed return on investment. The difference between a tax saving FD and a normal FD is that it has a lock-in period of five. The investor can withdraw the money only after five years once the returns are made. The special thing about tax saving FD is that by investing in it, the investor can claim tax exemption of up to Rs 1.5 lakh in a year under Section 80C of Income Tax.
Benefits of tax saving FD
One can start with a minimum investment of Rs 100 in a tax saving FD and a maximum investment of Rs 1.5 lakh can be made.
In this, payment of interest can be taken on monthly and quarterly basis.
It has a lock-in period of five years.
In this, you cannot withdraw the investment before the lock-in period, nor can you take a loan.
By investing once in tax saving FD, you get the benefit of equal interest for five years.
Interest rate on tax saving FD in SBI
6.50 percent interest is being given on tax saving FD in SBI.
Interest on Tax Saving FD in HDFC Bank
HDFC Bank is offering 7.00 percent interest to investors on tax saving FDs.
Interest on Tax Saving FD in ICICI Bank
ICICI Bank is giving 7.00 percent interest to investors on tax saving FD.
Interest on Tax Saving FD in Axis Bank
Axis Bank is offering 7.00 percent interest on tax saving FDs to investors.
Interest on Tax Saving FD in Indusind Bank
IndusInd Bank investors are getting 7.25 percent interest on tax saving FD.
Interest on Tax Saving FD in DCB Bank
7.60 percent interest is being given on DCB Bank Tax Saving FD.
