FD Scheme: Numerous investors are currently placing a higher emphasis on safety rather than seeking high returns, choosing financial products that provide stable yields, even if these yields are lower than those associated with riskier investments such as stocks and equity instruments.
For those interested in achieving both secure returns and tax savings, tax-saving fixed deposits (FDs) may be an ideal addition to your investment strategy. Fixed deposits continue to be a favored option among investors. Many of these FDs provide tax advantages under Section 80C of the Income Tax Act. Tax-saving FDs are deposit schemes that enable individuals to claim a deduction of up to Rs 1.5 lakh each year under Section 80C of the Income Tax Act, 1961. These deposits are subject to a mandatory lock-in period of five years, during which the interest rate remains fixed, ensuring consistent returns regardless of market volatility. However, it is important to note that the interest earned is taxable, and the bank will deduct TDS.
Best 5 FDs offering by banks
ICICI Bank: Offers 7.25% interest for general customers and 7.80% for senior citizens.
HDFC Bank: Provides 7% interest for general depositors and 7.50% for senior citizens.
Axis Bank: Allows deposits starting from Rs 100, with interest rates beginning at 7% for general citizens and 7.75% for senior citizens.
SBI: Grants 6.5% annual interest for general depositors and 7.5% for senior citizens under the tax-saving scheme.
Kotak Mahindra Bank: Offers an interest rate of 6.2% per annum for general citizens and 6.70% per annum for senior citizens for deposit tenures ranging from five to ten years.
Pritam Santra
Author at TimesBull covering breaking news and current affairs.
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