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When it comes to saving tax while simultaneously generating solid returns, one of the most popular options among tax savers is investing in tax-saving fixed deposits (FDs). Tax saving fixed deposits provide tax deductions under section 80C up to ₹1.5 lakh per annum in case of a single account only and have a 5-year lock-in period. Investors should be aware that interest generated on tax-saving deposits is taxable based on the tax slab, and TDS will be deducted when the interest received or reinvested on tax-saving FDs reaches Rs.40,000/- for regular customers and Rs.50,000/- for senior persons in a fiscal year. As interest rates in the economy are now on the upsurge after the central bank raised the repo rate to 4.90 per cent, investing in tax-saving fixed deposits could be a good option for those who are willing to make a long-term deposit of 5 years without making premature withdrawals while also looking to save tax. As a consequence, based on our study, below are the three private banks giving up to 7.10% returns on tax-saving fixed deposits to elderly folks.
DCB Bank provides a tax-saving fixed deposit option in which investors can make a minimum deposit of ₹1000 and a maximum investment of Rs.150,000. One can deposit money in the DCB Bank Tax-Saver FD for 5 years or more, and according to the guidelines, no premature withdrawals are permitted. As of May 21, 2022, DCB Bank offers a 7.10 per cent interest rate on tax-saving fixed deposits to senior people, while regular customers would receive a 6.60 per cent interest rate. DCB Bank does not allow auto-renewal on tax-saving fixed deposits, and no loan can be taken against the account.
Yes Bank tax-saving fixed deposit has a low minimum deposit requirement of ₹1000 and a maximum deposit limit of ₹150,000 in one fiscal year. This tax-saving deposit programme has a 5-year lock-in period and a nomination facility. Yes Bank offers tax-saving fixed deposit accounts that can be opened by Internet Banking, Phone Banking, or at the local branch. Yes Bank gives a 7.00 per cent return on tax-saving fixed deposits to older residents, while regular customers receive a 6.25 per cent return effective as of 6th June 2022. These interest rates have monthly or quarterly payout options, and the account balance can be reinvested at maturity.
RBL Bank tax saving fixed deposit accounts can be opened with amounts ranging from Rs. 100 to Rs. 1,50,000 in multiples of Rs. 100. The RBL Bank Tax Savings Fixed Deposit has a lock-in term of 60 months and a nomination option. As the name implies, the RBL Bank tax saving deposit programme does not enable partial or premature withdrawal, and in the case of joint deposits, the tax benefit under 80C will be accessible only to the primary holder. RBL Bank currently offers a 6.80 per cent return on its tax-saving FD scheme to elderly citizens and a 6.30 per cent return to regular consumers. These interest rates are effective as of 8th June 2022.
Source: Interest rates have been taken from the official websites of banks.
