Top 10 Banks Offering Best Returns On 5-Year Tax Saving Fixed Deposits In 2021
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Investment
oi-Vipul Das
For investors with a low-risk profile, new investors, or senior citizens, fixed deposits (FD) are always the best to bet. It is an investment vehicle under the debt category that not only generates guaranteed returns but also allows tax benefits under section 80C, flexible tenure, and deposit insurance cover up to Rs 5 lakh by DICGC where depositors can claim their money within 90 days if their banks go under a moratorium.
Here we are talking about fixed deposits for 5-years where our readers, especially debt investors need to keep in mind that the tax benefits up to Rs 1.5 lakhs under section 80C will only apply if they stay invested for 5-years of lock-in period which simply states that they can not make a premature withdrawal. By summing up all these factors, here we have compiled the top 10 public sector, private sector, and small finance banks that are now promising higher returns on fixed deposits of up to 5 years or tax-saving fixed deposits of less than Rs 2 Cr.
Top 10 Small Finance Banks Offering Good Returns On 5-Year Tax Saving FDs
When it comes to fixed deposits, small finance banks always offer higher returns to both regular and senior citizens compared to the leading private and public sector banks. But as a matter of concern for the safety of their deposits, let me remind the investors that they can enjoy the deposit insurance cover provided by DICGC across small finance banks also. For higher returns along with deposit safety, customers can open a fixed deposit account for 5-years in any of the below-listed small finance banks respectively.
| Sr No. | Banks | Regular FD Rates | Senior Citizen FD Rates | Tenure | W.e.f. |
|---|---|---|---|---|---|
| 1 | Ujjivan Small Finance Bank | 6.75% | 7.25% | 3 Years and 1 Day to 5 Years | March 5, 2021 |
| 2 | Jana Small Finance Bank | 6.75% | 7.25% | 3 years to less than 5 years | 07.05.2021 |
| 3 | Fincare Small Finance Bank | 6.75% | 7.25% | 59 months 1 day to 66 months | 29 July, 2021 |
| 4 | North East Small Finance Bank | 6.50% | 7.00% | 1096 days to less than 1825 days | April 19, 2021 |
| 5 | Equitas Small Finance Bank | 6.25% | 6.75% | 4 years 1 day to 5 years | June 1, 2021 |
| 6 | Suryoday Small Finance Bank | 6.25% | 6.50% | 5 years | June 21, 2021 |
| 7 | Utkarsh Small Finance Bank | 6.00% | 6.50% | 701 Days to 3652 Days | July 1, 2021 |
| 8 | Capital Small Finance Bank | 6.00% | 6.50% | 1 Year to less than 5 Years | June 3, 2021 |
| 9 | AU Small Finance Bank | 6.00% | 6.50% | 45 Months 1 Day to 60 Months | June 23, 2021 |
| 10 | ESAF Small Finance Bank | 5.25% | 5.75% | 1821 days to 3653 days | 02.05.2021 |
| Source: Bank Websites |
Top 10 Private Sector Banks Promising Higher Returns On 5-Year Tax Saving FDs
After small finance banks, private sector banks offer the best returns on fixed deposits to both regular and senior citizen investors. By keeping deposit insurance cover benefits and higher returns in mind, here we have compiled the top 10 private sector banks that are now promising higher interest rates on 5-year deposits.
| Sr No. | Banks | Regular FD Rates | Senior Citizen FD Rates | Tenure | W.e.f. |
|---|---|---|---|---|---|
| 1 | RBL Bank | 6.50% | 7.00% | 60 months | July 2, 2021 |
| 2 | DCB Bank | 6.50% | 7.00% | 36 months to 60 months | May 15, 2021 |
| 3 | Yes Bank | 6.25% | 7.00% | 3 years to less than 5 years | June 3, 2021 |
| 4 | IndusInd Bank | 6.00% | 6.50% | Indus Tax Saver Scheme (5 years) | July 23, 2021 |
| 5 | IDFC First Bank | 5.75% | 6.25% | 5 years | May 1, 2021 |
| 6 | Axis Bank | 5.40% | 5.90% | 3 years to 5 years | 22.06.2021 |
| 7 | ICICI Bank | 5.35% | 5.85% | 5 Years (80C FD) | 21.10.2020 |
| 8 | HDFC Bank | 5.30% | 5.80% | 3 year 1 day- 5 years | May 21, 2021 |
| 9 | Bandhan Bank | 5.25% | 6.00% | 3 years to less than 5 years | June 7, 2021 |
| 10 | Kotak Mahindra Bank | 5.20% | 5.70% | 4 years and above but less than 5 years | July 23, 2021 |
| Source: Bank Websites |
Top 10 Public Sector Banks Providing Best Returns On 5-Year Tax Saving FDs
For deposit amounts of less than Rs 2 Cr, here are the top 10 public sector banks offering the best interest rates on 5-year fixed deposits to both regular and senior citizens in 2021.
| Sr No. | Banks | Regular FD Rates | Senior Citizen FD Rates | Tenure | W.e.f. |
|---|---|---|---|---|---|
| 1 | Union Bank of India | 5.50% | 6.00% | 3 years to less than 5 years | 09.07.2021 |
| 2 | Canara Bank | 5.50% | 6.00% | 3 years and up to 5 years | 08.02.2021 |
| 3 | State Bank of India | 5.30% | 5.80% | 3 years to less than 5 years | 08.01.2021 |
| 4 | Punjab & Sind Bank | 5.30% | 5.80% | 3 Years – 5 Years | 16.05.2021 |
| 5 | Bank of Baroda | 5.25% | 5.75% | 3 years and up to 5 years | 16.11.2020 |
| 6 | Punjab National Bank | 5.25% | 5.75% | above 3 year & upto 5 years | 01.05.2021 |
| 7 | IDBI Bank | 5.25% | 5.75% | 5 years | July 14, 2021 |
| 8 | Indian Overseas Bank | 5.20% | 5.70% | 3 Years and Above | 09.11.2020 |
| 9 | Indian Bank | 5.15% | 5.65% | 5 years | 05.02.2021 |
| 10 | Central Bank of India | 5.00% | 5.50% | 2 years and up to 10 years | 10.07.2021 |
| Source: Bank Websites |
Story first published: Saturday, July 31, 2021, 13:35 [IST]
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