You can deposit a maximum of Rs 1.5 lakh in tax saving FD. Its loan in period is five years.
If you are among those investors who do not want to take risk, then investing in Fixed Deposit (FD) is a right decision for you. Especially such FD schemes which give better returns and also save tax. you can also do this. There are many tax saving FD schemes available in the market which can prove to be a great option. You can deposit a maximum of Rs 1.5 lakh in tax saving FD. Its loan in period is five years. In these schemes, a maximum deduction of Rs 1.5 lakh can be claimed under Section 80C of Income Tax. Keep in mind here that this is for those choosing the old regime option of income tax return. Let us discuss five such schemes here.
Axis Bank and HDFC Bank are giving 7% interest
Two private sector banks – Axis Bank and HDFC Bank are currently offering 7 percent interest on tax saving FD scheme. One thing to note here is that the interest earned on such tax saving FD schemes is taxable. The lock-in period of five years means that you will be able to withdraw the amount only after completion of maturity of five years.
IndusInd Bank and Yes Bank are giving 7.25% interest
According to the news of Economic Times, two more private sector banks – IndusInd Bank tax saving FD and Yes Bank are offering 7.25 percent interest on five-year tax saving FD schemes.
DCB Bank is offering the highest interest
You also have a chance to get the best returns on tax saving FD schemes. This bank is offering an excellent interest of 7.40 percent to the customers on this tax saving FD (DCB Bank tax saving FD) with a lock-in period of five years. Investors below 60 years of age can invest money in this.