Top Tax Saving Fixed Deposit Schemes

Tax Saving Fixed Deposit under Section 80C of Income tax is a popular and safe instrument for Tax saving. You can invest maximum of Rs. 1 Lacs in the same.

Below is the list of banks and their respective interest rates offer for general and senior citizens for their Tax Saving FDs.

The best Tax Saving Fixed Deposit Interest offered is 9.75% for General by Abhyudaya Co-operative Bank and 9.5% by City Union Bank; while its 9.75% for Senior Citizens by Abhyudaya Co-operative Bank, Nutan Nagarik Sahakari Bank and IDBI Bank.

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The list is sorted in alphabetical order and highlighted best interest offers.

BanksGeneralSenior Citizens
Abhyudaya Co-operative Bank9.759.75
Allahabad Bank8.758.75
Andhra Bank9.009.5
Axis Bank8.259.00
Bank Of Baroda9.009.00
Bank Of Maharashtra8.759.25
Canara Bank8.509.00
Catholic Syrian Bank8.759.25
Central Bank Of India8.509.00
City Union Bank9.509.50
Corporation Bank8.759.25
Dena Bank8.759.50
Dhanalakshmi Bank9.009.50
Greater Bombay Coop Bank8.508.50
HDFC Bank8.759.25
ICICI Bank8.509.25
IDBI Bank9.009.75
Indian Bank9.009.50
Indian Overseas Bank9.009.50
IndusInd Bank8.759.25
ING Vysya Bank8.509.00
Jammu & Kashmir Bank8.509.00
Karnataka Bank9.009.50
Karur Vysya Bank8.759.00
Lakshmi Vilas Bank9.009.25
Mahanagar Co-op Bank9.259.25
Maharashtra State Co Operative Bank8.008.50
Nainital Bank8.509.00
Nutan Nagarik Sahakari Bank9.259.75
Oriental Bank of Commerce9.009.25
Punjab and Sind Bank9.059.55
Punjab National Bank8.759.25
South Indian Bank8.509.00
State Bank of Bikaner and Jaipur8.759.25
State Bank Of Hyderabad9.009.50
State Bank Of India8.509.00
State Bank Of Mysore9.009.50
State Bank Of Travancore8.509.00
Syndicate Bank8.509.00
Tamilnad Mercantile Bank9.009.25
Thane Janata Sahakari Bank8.759.25
The Ratnakar Bank9.009.50
The Shamrao Vithal Co-op Bank Limited8.008.00
UCO Bank8.759.25
United Bank Of India8.759.50
Vijaya Bank9.009.50
Yes Bank8.759.50

Source: Bank Websites                               Last Updated: December 18, 2012

Key Points – Tax Saving FDs:

  1. Deposits are accepted for a period of 5 years only
  2. Interest rate as applicable from time to time for 5 years to term deposits. Senior citizens are entitled for additional interest as applicable.
  3. Depositor can opt for either cumulative or non-cumulative way of crediting periodical interest.
  4. Depositor gets benefit U/s.80C of the Income Tax Act. 1961
  5. Minimum deposit is Rs.100 and in multiples thereof
  6. Maximum deposit in a Financial Year Rs.1,00,000/- [i.e., 1 st April to 31 st March of the following calendar year]
  7. Deposits cannot be withdrawn prematurely
  8. Deposits cannot be pledged to secure loan or as security

Disclaimer: We have tried to keep interest rates up to date, but as these change frequently you are advised to check with the bank before investing. Also it would be great if you can point out any errors through comments or email!

7 thoughts on “Top Tax Saving Fixed Deposit Schemes

  1. Good info! I did my tax saving FD with City Union Bank. I was not even aware of the bank before I read your post.

  2. Is the interest is taxable on maturity?

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