Top 5 Banks Promising Good Returns On Tax Saving FDs To Both Regular & Senior Citizens
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Tax Saving FDs of Small Finance Banks
On tax-saving FDs, Ujjivan Small Finance Bank provides 6.75 percent interest. Jana Small Finance Bank and North East Small Finance Bank are the next two banks to provide 6.50 percent interest on tax saving fixed deposits. When compared to leading private and public sector banks, small finance banks offer higher interest rates on fixed deposits of both short term and long term. As a consequence, we’ve compiled a list of the top 5 small finance banks offering higher returns on tax-saving fixed deposits of less than Rs 2 Cr in 2021.
| Sr No. | Banks | Regular FD Rates | Senior Citizen FD Rates | W.e.f. |
|---|---|---|---|---|
| 1 | Ujjivan Small Finance Bank | 6.75% | 7.25% | 05.03.2021 |
| 2 | Jana Small Finance Bank | 6.50% | 7.00% | 07.05.2021 |
| 3 | North East Small Finance Bank | 6.50% | 7.00% | 19 April 2021 |
| 4 | Fincare Small Finance Bank | 6.25% | 6.75% | 29 July 2021 |
| 5 | Equitas Small Finance Bank | 6.25% | 6.75% | 1 June 2021 |
| Source: Bank Websites |
Tax Saving FDs of Private Sector Banks
On tax saving fixed deposits, private sector banks are currently offering interest rates of up to 6.50 percent. DCB Bank, RBL Bank, for example, provides 6.50 percent interest on tax-saving deposits. These rates are much higher if we compare them against the interest rates of public sector banks. For both regular and senior citizens here we have picked up the top 5 private sector banks that are now promising higher interest rates on tax saving fixed deposits of less than Rs 2 Cr.
| Sr No. | Banks | Regular FD Rates | Senior Citizen FD Rates | W.e.f. |
|---|---|---|---|---|
| 1 | DCB Bank | 6.50% | 7.00% | 15 May 2021 |
| 2 | RBL Bank | 6.50% | 7.00% | July 2, 2021 |
| 3 | Yes Bank | 6.25% | 7.00% | 5 August 2021 |
| 4 | IndusInd Bank | 6.00% | 6.50% | 23 July 2021 |
| 5 | IDFC First Bank | 5.75% | 6.25% | May 1, 2021 |
| Source: Bank Websites |
Tax Saving FDs of Public Sector Banks
Among public sector banks, Union Bank of India and Canara Bank are now promising higher interest rates of 5.50% on tax saving fixed deposits. For a deposit amount of less than Rs 2 Cr, here we have picked up the top 5 public sector banks which are now offering good returns on tax saving fixed deposits of 5 years.
| Sr No. | Banks | Regular FD Rates | Senior Citizen FD Rates | W.e.f. |
|---|---|---|---|---|
| 1 | Union Bank of India | 5.50% | 6.00% | 09.07.2021 |
| 2 | State Bank of India | 5.30% | 5.80% | 08.01.2021 |
| 3 | Punjab & Sind Bank | 5.30% | 5.80% | 16.05.2021 |
| 4 | Canara Bank | 5.25% | 5.75% | 09.08.2021 |
| 5 | Bank of Baroda | 5.25% | 5.75% | 16.11.2020 |
| Source: Bank Websites |
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