Tax Saving FD: If you want good returns along with saving tax, then you should invest in Tax Saver FD. By investing in this FD, you get tax exemption under the Income Tax Act. Some banks are currently offering huge interest on tax saver FD.
To save tax for the financial year 2023-24, investment will have to be made by 31 March 2023. Most employers or companies ask for investment declaration in January or February. To avoid haste and taking wrong investment decisions, you should do tax planning from now on. Along with Public Provident Fund (PPF), National Pension System (NPS), Sukanya Samriddhi Yojana (SSY) and Equity-Linked Saving Scheme, you can save tax by investing money in tax-saving fixed deposits.
According to a report by Moneycontrol, IndusInd Bank and Yes Bank are currently offering the highest interest on tax saving FDs. Currently, interest is available up to Rs 7.25 on tax saving FD in both these banks. The amount of Rs 1.5 lakh invested here will increase to Rs 2.15 lakh in five years.
HDFC Bank FD: HDFC Bank is the largest private sector bank in the country. HDFC Bank is also giving huge interest on tax saving FD. If you make a tax saving FD in HDFC Bank, you will get 7 percent interest and the amount of Rs 1.5 lakh invested will become Rs 2.12 lakh in five years.
Union Bank FD: Union Bank of India and Canara Bank are offering interest up to 6.7 percent on tax saving FD. If you make an FD of Rs 1.5 lakh for five years in these two government banks, you will get Rs 2.09 lakh on maturity.
Federal Bank FD: Federal Bank is offering interest up to 6.6 percent on tax saving FD. Rs 1.5 lakh invested in tax saving FD of Federal Bank will increase to Rs 2.08 lakh in five years.
State Bank of India FD: The country’s largest bank, State Bank of India (SBI) is offering up to 6.5 percent interest on tax saving FDs. Punjab National Bank, Indian Bank, Indian Overseas Bank and IDBI Bank are also offering 6.5 percent interest. The amount of Rs 1.5 lakh invested in these banks will increase to Rs 2.07 lakh in five years.