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.

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 Deposits cannot be withdrawn prematurely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!