Senior Citizen Tax Saving FD Interest Rates: As the age of a person increases, they do not want to take much risk, that is why many senior citizens choose investment options like Fixed Deposit (FD). Apart from this, they also get tax benefits by investing in 5 year tax saving FD.
Senior Citizen Tax Saving FD Interest Rates: As the age of a person increases, they do not want to take much risk, that is why many senior citizens choose investment options like Fixed Deposit (FD). Apart from this, they also get tax benefits by investing in 5-year tax-saving FDs, but the thing to note is that you can avail the tax deductions available on tax-saving FDs only if you choose the old tax regime. Today we are giving you information about how much interest senior citizens are getting in tax saving FD, then let us know about it.
What are tax-saving FDs?
Through this, any person can earn interest and also save tax. It offers annual tax deduction of up to Rs 1.5 lakh under section 80c of the Income Tax Act, 1961. The amount invested in this remains locked for 5 years, during which it cannot be withdrawn. This can be a better option for those who want to avoid tax and get a better and fixed return from their investments as the interest received is taxable and the interest rate varies from bank to bank.
Savings FD Interest Rates from Private Bank Tax
- Axis Bank – 7.75 percent
- DCB Bank – 7.90 percent
- Federal Bank – 6.60 percent
- HDFC Bank – 7.75 percent
- ICICI Bank – 7.50 percent
- IDFC First Bank – 7.50 percent
- IndusInd Bank – 7.75 percent
- Kotak Mahindra Bank – 6.70 percent
- RBL Bank – 7.60 percent
Public Sector Bank Tax Saving FD Interest Rates
- Bank of Baroda – 7.15 percent
- Canara Bank – 7.20 percent
- Indian Bank – 6.60 percent
- Indian Overseas Bank – 7.00 percent
- Punjab National Bank – 7.00 percent
- State Bank of India – 7.50 percent
Tax on interest earned
Income tax is levied on the interest income received from these tax-saving FDs. TDS is applicable on the interest thus earned. However, senior citizens can avoid or reduce TDS by submitting Form 15H in the bank. Under Section 80TTB of the Income Tax Act, senior citizens can deduct up to Rs 50,000 from the interest paid on tax saving FDs.