{"id":5413,"date":"2021-05-01T00:30:00","date_gmt":"2021-04-30T19:00:00","guid":{"rendered":"http:\/\/www.apnaplan.com\/?page_id=5413"},"modified":"2021-06-02T04:28:54","modified_gmt":"2021-06-01T22:58:54","slug":"highest-tax-saving-bank-fixed-deposit-rates-us-80c","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/highest-tax-saving-bank-fixed-deposit-rates-us-80c\/","title":{"rendered":"Best Tax Saving FD Rates u\/s 80C \u2605 June 2021"},"content":{"rendered":"\n

Tax Saving FD (Fixed Deposits)<\/strong><\/span> is one of the most popular way to save taxes u\/s 80C of income tax<\/a><\/strong>. These are like normal Fixed Deposit with banks but is labeled as \u201cTax Saving FD\u201d while making the deposit.<\/p>\n\n\n\n

Tax Saving FD: Advantages<\/h2>\n\n\n\n

Following reasons make Tax Saving fixed deposit attractive to investors;<\/p>\n\n\n\n

  1. Convenient to invest. ICICI Bank, SBI, HDFC Bank, etc offers online facility for Tax Saving FD<\/a><\/span><\/li>
  2. Redemption on maturity comes directly to your bank account<\/span><\/li>
  3. High Safety – FD up to Rs 5 Lakh is insured<\/a><\/span><\/li><\/ol>\n\n\n\n

    Tax Saving FD: Disadvantages<\/h2>\n\n\n\n
    1. There are lot of competing products like EPF, PPF, ELSS to exaust the investment of Rs 1.5 Lakh u\/s 80C<\/a><\/span><\/li>
    2. The interest earned is taxable<\/span><\/li>
    3. Cannot be withdrawn prematurely<\/span><\/li>
    4. Cannot be pledged to secure loan or as security<\/span><\/li><\/ol>\n\n\n\n

      Tax Saving FD Interest Rate<\/h2>\n\n\n\n

      As of June 1, 2021<\/strong> banks are offering 4.00% – 7.25% for general public and 4.50% – 7.75% for Senior Citizens.<\/p>\n\n\n\n

      1. The best Tax Saving Fixed Deposit Interest offered is 7.25% for General Public by Suryoday Small Finance Bank<\/strong><\/span> and 6.50% by DCB Bank, Indus Ind Bank & Ratnakar Bank<\/strong><\/li>
      2. The best Senior citizens<\/strong> Tax Saving Fixed Deposit Interest offered is 7.75% by Suryoday Small Finance Bank<\/strong><\/span> and 7.25% by Yes Bank<\/strong><\/li>
      3. 5 Year NSC at Post Office gives <\/strong><\/a>6.8<\/a><\/strong>%<\/strong><\/a> interest for both Senior Citizens and general public<\/li><\/ol>\n\n\n\n

        Best Investment to Save Tax<\/strong><\/h4>

        Section 80C offers more than 10 investments where you can invest to save tax, However many a times you need not actually do this investment as its already covered due to expenses like children tuition fee or automatic EPF deduction for salaried. In case you are new to taxes and investment do read our helpful guide on How to take maximum advantage of Section 80C and choose the best investment to save tax<\/a>.<\/p><\/div><\/div>\n\n\n\n

        The table below lists the banks in alphabetical order with their respective interest rate offer on Tax Saving FDs for General and Senior Citizens. The highest Interest Rates have been highlighted<\/span>:<\/p>\n\n\n\n

        Bank<\/th>Type of Bank<\/th>General Public<\/th>Senior Citizens<\/th>Scheme Name<\/th><\/tr><\/thead>
        Axis Bank<\/td>Private<\/td>5.75%<\/td>6.50%<\/span><\/td>Axis Bank Tax Saver Deposits<\/td><\/tr>
        Bandhan Bank<\/td>Private<\/td>5.50%<\/td>6.25%<\/span><\/td>Bandhan Bank Tax Saver FD<\/td><\/tr>
        Bank of Baroda<\/td>Government<\/td>5.25%<\/td>6.25%<\/span><\/td>Baroda Tax Savings Term Deposit<\/td><\/tr>
        Bank of India<\/td>Government<\/td>5.30%<\/td>5.80%<\/td>Star Sunidhi Tax-Saving Deposit Scheme<\/td><\/tr>
        Bank of Maharashtra<\/td>Government<\/td>4.90%<\/td>5.40%<\/td>Bank of Maharashtra Tax Saver FD<\/td><\/tr>
        Canara Bank<\/td>Government<\/td>5.50%<\/td>6.00%<\/td>Canara Tax Saver Scheme<\/td><\/tr>
        Catholic Syrian Bank<\/td>Private<\/td>5.75%<\/td>6.25%<\/span><\/td>CSB Tax Savings Support<\/td><\/tr>
        Central Bank of India<\/td>Government<\/td>5.10%<\/td>5.60%<\/td>CENT Tax Saving Deposit<\/td><\/tr>
        Citibank<\/td>Foreign<\/td>3.50%<\/td>4.00%<\/td>Citibank Tax Saver Deposit<\/td><\/tr>
        City Union Bank<\/td>Private<\/td>6.00%<\/span><\/td>6.00%<\/td>CUB Tax Saver Gold Deposit<\/td><\/tr>
        DCB Bank<\/td>Private<\/td>6.50%<\/span><\/td>7.00%<\/span><\/td>DCB Bank Tax Saver FD<\/td><\/tr>
        Dhanalakshmi Bank<\/td>Private<\/td>5.60%<\/td>5.60%<\/td>Dhanam Tax Advantage Deposit<\/td><\/tr>
        Federal Bank<\/td>Private<\/td>5.50%<\/td>6.00%<\/td>Federal Tax Savings Deposit<\/td><\/tr>
        HDFC Bank<\/td>Private<\/td>5.30%<\/td>5.80%<\/td>HDFC Bank Tax Saver FD<\/td><\/tr>
        ICICI Bank<\/td>Private<\/td>5.35%<\/td>5.85%<\/td>ICICI Bank Tax Saver FD<\/td><\/tr>
        IDBI Bank<\/td>Private<\/td>5.25%<\/td>5.75%<\/td>IDBI Bank Tax Saver FD<\/td><\/tr>
        IDFC First Bank<\/td>Private<\/td>5.75%<\/td>6.25%<\/span><\/td>Suvidha Tax Saving Fixed Deposits<\/td><\/tr>
        Indian Bank<\/td>Government<\/td>5.25%<\/td>5.75%<\/td>IB Tax Saver schemes<\/td><\/tr>
        Indian Overseas Bank<\/td>Government<\/td>5.20%<\/td>5.70%<\/td>IOB Tax Saver Deposit Scheme<\/td><\/tr>
        Indus Ind Bank<\/td>Private<\/td>6.50%<\/span><\/td>7.00%<\/span><\/td>Indus Tax Saver Scheme<\/td><\/tr>
        J&K Bank<\/td>Government<\/td>5.30%<\/td>5.80%<\/td>Tax Saver Term Deposit Scheme<\/td><\/tr>
        Karnataka Bank<\/td>Private<\/td>5.50%<\/td>5.90%<\/td>KBL \u2013 Tax Planner<\/td><\/tr>
        Karur Vysya Bank<\/td>Private<\/td>6.00%<\/span><\/td>6.00%<\/td>KVB \u2013 Tax Shield Deposits<\/td><\/tr>
        Kotak Mahindra Bank<\/td>Private<\/td>5.30%<\/td>5.80%<\/td>Tax Saving Deposits<\/td><\/tr>
        Nainital Bank<\/td>Private<\/td>6.35%<\/span><\/td>6.35%<\/span><\/td>Nainital Bank Tax Saver FD<\/td><\/tr>
        North East Small Finance Bank<\/td>Small Bank<\/td>6.50%<\/span><\/td>7.00%<\/span><\/td>North East Bank Tax Saver FD<\/td><\/tr>
        Post Office FD (5 Years)<\/td>Post Office<\/td>6.70%<\/span><\/td>6.70%<\/span><\/td>5-Year Post Office Time Deposit <\/td><\/tr>
        Post Office NSC (5 Years)<\/td>Post Office<\/td>6.80%<\/span><\/td>6.80%<\/span><\/td> National Saving Certificate<\/td><\/tr>
        Punjab and Sind Bank<\/td>Government<\/td>5.25%<\/td>5.75%<\/td>PSB Fixed Deposit Tax-Saver Scheme<\/td><\/tr>
        Punjab National Bank<\/td>Government<\/td>5.30%<\/td>5.80%<\/td>PNB Tax Saver Fixed Deposit Scheme<\/td><\/tr>
        Ratnakar Bank<\/td>Private<\/td>6.60%<\/span><\/td>7.10%<\/span><\/td>Ratna Tax Saving Scheme<\/td><\/tr>
        South Indian Bank<\/td>Private<\/td>5.65%<\/td>6.15%<\/td>SIB Tax Gain 2006<\/td><\/tr>
        State Bank of India<\/td>Government<\/td>5.40%<\/td>6.20%<\/td>SBI Tax Savings Scheme 2006 (SBITSS)<\/td><\/tr>
        Suryoday Small Finance Bank <\/td>Small Bank<\/td>7.25%<\/span><\/td>7.75%<\/span><\/td>Suryoday Bank Tax Saver FD<\/td><\/tr>
        Tamilnad Mercantile Bank<\/td>Private<\/td>5.50%<\/td>6.00%<\/td>TMB TSD (Mullai)<\/td><\/tr>
        UCO Bank<\/td>Government<\/td>5.00%<\/td>5.50%<\/td>UCO Tax Saver Deposit Scheme \u2013 2006<\/td><\/tr>
        Union Bank of India<\/td>Government<\/td>5.55%<\/td>6.05%<\/td>Union Tax Saver<\/td><\/tr>
        Utkarsh Small Finance Bank<\/td>Small Bank<\/td>6.75%<\/span><\/td>7.25%<\/span><\/td>Utkarsh Bank Tax Saver FD<\/td><\/tr>
        Yes Bank<\/td>Private<\/td>6.75%<\/span><\/td>7.25%<\/span><\/td>Yes Bank Tax Saver FD<\/td><\/tr><\/tbody><\/table>
        Best Tax Saving FD Interest Rate – June 2021<\/strong><\/figcaption><\/figure>\n\n\n\n

        Taxation & TDS – Tax Saving Fixed Deposits:<\/h2>\n\n\n\n

        The interest received on tax Saving Fixed Deposit is fully taxable<\/strong>. The interest income is considered as “income from other sources” for Tax filing and taxed at marginal tax rates applicable.<\/p>\n\n\n\n

        TDS (Tax deduction at source) at the rate of 10%<\/strong> is deducted, if the interest income is more than Rs 40,000 in financial year per bank (changed from Rs 10,000 limit in Budget 2019<\/a>)<\/span><\/p>\n\n\n\n

        In case of Senior citizens TDS would be deducted at the rate fo 10%, if the interest income exceeds Rs 50,000<\/a>. You can see the same in Form 26AS<\/a>.<\/p>\n\n\n\n

        In case PAN is not submitted to the bank, the TDS rate is 20%.<\/p>\n\n\n\n

        In case your income does not exceed taxable slab and so want to avoid TDS, you can submit Form 15G or 15H<\/a>  when making the deposit. You would also need to submit the form at the start of every financial year to the concerned bank branch.<\/p>\n\n\n\n

        Get Highest Fixed Deposit Interest Rates<\/strong><\/strong><\/h4>

        Fixed Deposit with Banks is one of the most popular and convenient investment option. To help you choose the best, we compare the interest rates on fixed deposit across all major 48 banks in India including government, private, foreign and small financial banks<\/a> in India every month. This may prove to be quite handy for you in choose the Best Bank FD scheme<\/a>.<\/p><\/div><\/div>\n\n\n\n

        \"Highest
        Highest Tax Saving Bank Fixed Deposit Rates – 80C – June 2021<\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

        Helpful Posts on Fixed Deposits<\/h2>\n\n\n\n