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Tax Saving FD: Save tax by investing in these banks, you are getting interest up to 7%, check details

Tax Saving FD: There is a lock-in period of five years on this FD account, during which the invested cash cannot be withdrawn. This is a viable option for those who want to avoid tax and get a fixed return on their investment.

Tax Saving FD: Anyone can earn interest and save tax from bank tax-saving fixed deposits (FD). In this, tax benefit of up to Rs 1.5 lakh is available annually under Section 80C of the Income Tax Act, 1961. This tax saving option is available to those who opt for the old tax system.

Tax saving FD

There is a lock-in period of five years on this FD account, during which the invested cash cannot be withdrawn. This is a viable option for those who want to avoid tax and get a fixed return on their investment.

Tax Saving FD Benefits

Tax-saving: The principal amount invested as a tax-saving FD is given as deduction to the first holder of the FD under Section 80C of the Income Tax Act. The maximum deduction in a financial year is Rs 1,50,000.

No TDS on submission of Form 15H/15G: This FD is subject to TDS rules and regulations. The interest earned on this deposit is taxable. However, if your income is not taxable, you can submit Form 15H/15G and the bank will not deduct TDS on your interest.

Small Accounts for Individuals: It is possible for minors to open tax saving FDs also. These tax saving deposits can serve as an important means of financial planning for them.

Things to note

  • The tenure of tax-saving FD is five years.
  • Loan against tax-saving FD is prohibited. Premature withdrawal is also prohibited.
  • It can be opened only in banks. The minimum deposit requirement for tax-saving FD varies from bank to bank.

Banks and interest rates

  • State Bank of India- 6.50%
  • Canara Bank- 6.70%
  • PNB- 6.50%
  • HDFC Bank- 7%
  • ICICI Bank- 7%
  • Axis Bank- 7%
  • Yes Bank- 7%
Shyamu Maurya
Shyamu Maurya
Shyamu has done Degree in Fine Arts and has knowledge about bollywood industry. He started writing in 2018. Since then he has been associated with Informalnewz. In case of any complain or feedback, please contact me @informalnewz@gmail.com
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