The government allows tax deductions for certain investments under Section 80C of the Income Tax Act to tax payers in many savings schemes, especially Public Provident Fund, National Savings Bonds, National Pension Scheme, Life Insurance Premiums, Health Insurance Premiums.
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In this case, an individual can get a tax deduction of up to Rs 1.5 lakh under section 80C for 5-year fixed deposit savings schemes. Also, although these financial schemes will provide tax relief to the individual, TDS will be applicable on the interest on these FDs at the time of maturity.
So let’s find out here which 5 banks are currently offering the highest interest rates on tax saving FDs.
DCB Bank: DCB Bank offers an interest rate of 7.25 percent on fixed deposits for 5 years.
City Union Bank: City Union Bank offers 7 percent interest rate on 5-year tax saving fixed deposit accounts.
AU small finance bank: Au small finance bank offers 6.95 percent interest on 5-year tax saving fixed deposits ie FDs.
Indusind bank: We offer 6.75 percent interest rate on tax saving fixed deposits for 5 years.
Yes Bank: Offers 6.75 percent interest rate on 5-year fixed deposit accounts.
Although many banks offer higher interest on fixed deposits, as per Income Tax Act Rs.1. Remember that you can invest up to Rs 5 lakh.
Published by:Lilly Mary Kamala
First published:
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