Tax saving fixed deposits: SBI vs HDFC Bank vs ICICI Bank vs Axis Bank. Which bank offers highest interest rate? | Mint
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Business News/ Money / Personal Finance/  Tax saving fixed deposits: SBI vs HDFC Bank vs ICICI Bank vs Axis Bank. Which bank offers highest interest rate?
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Tax saving fixed deposits: SBI vs HDFC Bank vs ICICI Bank vs Axis Bank. Which bank offers highest interest rate?

Latest interest rates of SBI, HDFC, ICICI and BoB on tax-saving fixed deposits (FDs)

The maturity period of a tax-saver FD is 5 years. (iStock)Premium
The maturity period of a tax-saver FD is 5 years. (iStock)

Income tax-saving fixed deposits (FDs) are among the savings options that offer tax benefits under Section 80C. An investor can claim a deduction of up to 1.5 lakh by investing in tax-saving FDs. 

What are tax-saving FDs?

The maturity period of a tax-saver FD is 5 years. The interest earned from tax-saver FDs is taxable. Premature withdrawal cannot be done in tax-saving FDs and you cannot get a loan against tax-saver FDs.

A look at the interest rates offered by the country's largest lenders like the State Bank of India (SBI),  HDFC Bank, ICICI Bank, and Bank of Baroda (BoB)

SBI tax-saving FDs latest rates

SBI offers an interest rate of 6.5% for general customers and 7% for senior citizens on its tax-saving FDs. The minimum deposit in an SBI income tax saving FD is 1,000 and in multiples thereof whereas the maximum deposit should not exceed 1,50,000 in a year.

HDFC Bank tax-saving FDs latest rates

HDFC Bank allows the opening of tax-saving deposits with a minimum amount of 100. HDFC Bank offers fixed deposits of maturity of up to 10 years. The bank is offering an interest rate of 7% on tax-saving FDs. Senior citizens get 50 basis points extra on these deposits.

ICICI Bank tax-saving FDs latest rates

ICICI Bank offers an interest rate of 7% to general customers and 7.5 % to senior citizens on FDs with maturity between five years and 10 years. The minimum amount required for opening an ICICI Bank tax-saving FD is 10,000, whereas the maximum deposit should not exceed 1,50,000 in a year.

Bank of Baroda tax-saving FDs latest rates

On FDs maturing between five years and ten years, BoB offers an interest rate of 6.5 % to general customers and 7.15% to elderly people.

Axis Bank tax-saving FDs latest rates

On FDs maturing between five years and ten years, Axis Bank gives 7% to the general public and  7.75% to senior citizens

 

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ABOUT THE AUTHOR
Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 16 Nov 2023, 03:01 PM IST
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