Tax Saving Fixed Deposits: Top 5 Private Sector Banks With Higher Interest Rates
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Investment
oi-Vipul Das
Without a doubt, fixed deposits are the most secure investment for both short and long-term financial goals. However, by making a fixed deposit for a 5-year lock-in period, both regular and senior citizens can claim tax benefits on investments of up to Rs 1.5 lakhs under Section 80C of the Income Tax Act, 1961. This implies that, in addition to meeting your 5-year financial target, you may also claim tax benefits on your deposits or can be claimed as tax-saving fixed deposits. The lock-in term in tax saving deposits implies that your deposit will be locked in for 5 years and you will not be able to make premature withdrawals, which is the sole concern you need to be careful of. Amid declining interest rates, here are the top 5 private sector banks that are offering higher interest rates to both regular and elderly citizens who wish to earn substantial returns on their tax-saving deposits of 5 years.
Note: The interest rates on tax-saving fixed deposits of 5 years are marked in bold.
Yes Bank
Yes Bank promises an interest rate of 6.25 percent to the general public and 7.00 percent to senior people for both senior citizens on tax-saving fixed deposits. The bank’s most current FD rates are as follows.
| Period | Regular Interest Rates | Senior Citizen Interest Rates |
|---|---|---|
| 7 to 14 days | 3.25% | 3.25% |
| 15 to 45 days | 3.50% | 3.50% |
| 46 to 90 days | 4.00% | 4.00% |
| 3 months to | 4.50% | 4.50% |
| 6 months to | 5.00% | 5.03% |
| 9 months to | 5.25% | 5.32% |
| 1 year | 5.75% | 5.88% |
| 18 Months to | 6.00% | 6.14% |
| 3 Years to | 6.25% | 6.40% |
| 5 Years to | 6.50% | 6.66% |
| Source: Bank Website, W.e.f 5th August, 2021 |
RBL Bank
RBL Bank is now offering an interest rate of 6.30 percent to regular customers and 6.80 percent to senior people on tax-saving deposits of less than Rs 2 Cr. The bank’s most current interest rates on domestic, NRO, NRE and Flexi Fixed Deposits are as follows.
| Period | Regular Interest Rates | Senior Citizen Interest Rates |
|---|---|---|
| 7 days to 14 days | 3.25% | 3.75% |
| 15 days to 45 days | 3.75% | 4.25% |
| 46 days to 90 days | 4.00% | 4.50% |
| 91 days to 180 days | 4.50% | 5.00% |
| 181 days to 240 days | 5.00% | 5.50% |
| 241 days to 364 days | 5.25% | 5.75% |
| 12 months to less than 24 months | 6.00% | 6.50% |
| 24 months to less than 36 months | 6.00% | 6.50% |
| 36 months to less than 60 months | 6.30% | 6.80% |
| 60 months to 60 months 1 day | 6.30% | 6.80% |
| 60 months 2 days to less than 120 months | 5.75% | 6.25% |
| 120 months to 240 months | 5.75% | 6.25% |
| Tax Savings Fixed Deposit (60 months) | 6.30% | 6.80% |
| Source: Bank Website, W.e.f. September 01, 2021 |
IndusInd Bank
IndusInd Bank offers a 5-year Indus Tax Saver Scheme with an interest rate of 6.00 percent for regular customers and 6.50 percent for senior people. On fixed deposits of less than Rs 2 crore, the bank is currently guaranteeing the following interest rates.
| Period | Regular Interest Rates In % | Senior Citizen Interest Rates In % |
|---|---|---|
| 7 days to 14 days | 2.5 | 3 |
| 15 days to 30 days | 2.75 | 3.25 |
| 31 days to 45 days | 3 | 3.5 |
| 46 days to 60 days | 3.25 | 3.75 |
| 61 days to 90 days | 3.4 | 3.9 |
| 91 days to 120 days | 3.75 | 4.25 |
| 121 days to 180 days | 4.25 | 4.75 |
| 181 days to 210 days | 4.6 | 5.1 |
| 211 days to 269 days | 4.75 | 5.25 |
| 270 days to 354 days | 5.5 | 6 |
| 355 days to 364 days | 5.5 | 6 |
| 1 year to below 1 Year 6 Months | 6 | 6.5 |
| 1 Year 6 Months to below 1 Year 7 Months | 6 | 6.5 |
| 1 Year 7 Months to below 2 Years | 6 | 6.5 |
| 2 years to below 2 years 6 Months | 6 | 6.5 |
| 2 years 6 months to below 2 years 9 Months | 6 | 6.5 |
| 2 years 9 months upto 3 years | 6 | 6.5 |
| Above 3 years upto 61 months | 6 | 6.5 |
| 61 months and above | 5.5 | 6 |
| Indus Tax Saver Scheme (5 years) | 6 | 6.5 |
| Source: Bank Website, W.e.f. July 23rd, 2021 |
DCB Bank
DCB Bank currently offers a 5.95 percent interest rate on 5-year tax-saving fixed deposits to ordinary customers and a 6.45 percent interest rate to senior people. DCB Bank offers the following interest rates to depositors on Resident Indian Fixed Deposits of less than Rs 2 Cr.
| Period | Regular Interest Rates | Senior Citizen Interest Rates |
|---|---|---|
| 7 days to 14 days | 4.35% | 4.85% |
| 15 days to 45 days | 4.35% | 4.85% |
| 46 days to 90 days | 4.35% | 4.85% |
| 91 days to less than 6 months | 5.05% | 5.55% |
| 6 months to less than 12 months | 5.45% | 5.95% |
| 12 months | 5.55% | 6.05% |
| More than 12 months to less than 15 months | 5.30% | 5.80% |
| 15 months to less than 18 months | 5.50% | 6.00% |
| 18 months to less than 700 days | 5.50% | 6.00% |
| 700 days | 5.95% | 6.45% |
| More than 700 days to less than 36 months | 5.50% | 6.00% |
| 36 months | 5.95% | 6.45% |
| More than 36 months to 60 months | 5.95% | 6.45% |
| More than 60 months to 120 months | 5.95% | 6.45% |
| Source: Bank Website, With effect from 17th August 2021 |
Bandhan Bank
Bandhan Bank promises an interest rate of 5.25 percent to regular customers and 6.00 percent to senior citizens on tax-saving fixed deposits of less than Rs 2 crore. The most recent fixed deposit interest rates of the bank are given below.
| Period | Regular Interest Rates | Senior Citizen Interest Rates |
|---|---|---|
| 7 days to 14 days | 3.00% | 3.75% |
| 15 days to 30 days | 3.00% | 3.75% |
| 31 days to Less than 2 months | 3.50% | 4.25% |
| 2 months to less than 3 months | 3.50% | 4.25% |
| 3 months to less than 6 months | 3.50% | 4.25% |
| 6 months to less than 1 year | 4.50% | 5.25% |
| 1 year to 18 months | 5.50% | 6.25% |
| Above 18 months to less than 2 years | 5.50% | 6.25% |
| 2 years to less than 3 years | 5.50% | 6.25% |
| 3 years to less than 5 years | 5.25% | 6.00% |
| 5 years to up to 10 years | 5.00% | 5.75% |
| Source: Bank Website, W.e.f. June 7, 2021 |
Story first published: Thursday, October 14, 2021, 17:19 [IST]
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