If you are looking for good returns along with tax savings, then you should definitely invest in TaxSaver FD. By investing in this FD, one gets tax exemption under the Income Tax Act. Some banks are currently offering huge interest on tax-saving FDs. To save on tax for the financial year 2023–24, investments were made by March 31, 2023. Most employers or companies ask for investment declarations in January or February. To avoid hassle and last-minute wrong investment decisions, one should plan their finances beforehand.
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Along with the Public Provident Fund (PPF), National Pension System (NPS), Sukanya Samriddhi Yojana (SSY), and Equity-Linked Saving Scheme (ELSS), one can save tax by investing money in various tax-saving FDs. According to a recent report, some banks are providing up to 7 per cent interest rate on tax-saving fixed deposits. Let’s take a look.
1. The banks offering the greatest interest rates on tax-saving FDs right now are IndusInd Bank and Yes Bank. Currently, interest is available up to Rs 7.25 on tax-saving FDs in both of these banks. In five years, Rs 1.5 lakh invested here will grow to Rs 2.15 lakh.
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2. The biggest private sector bank in the country is HDFC Bank. On tax-saving FDs, HDFC Bank is also offering very high-interest rates. If one makes a tax-saving FD at HDFC Bank, they will get 7 per cent interest, and the amount of Rs 1.5 lakh invested will become Rs 2.12 lakh in five years.
3. Union Bank of India and Canara Bank are offering interest up to 6.7 per cent on tax-saving FD. If one maintains an FD of Rs 1.5 lakh for five years in these two government banks, they will get Rs 2.09 lakh on maturity.
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4. Reports suggest the Federal Bank is offering interest up to 6.6 per cent on tax-saving FDs. Rs 1.5 lakh invested in the tax-saving FD of Federal Bank will increase to Rs 2.08 lakh in five years.
5. The country’s largest bank, the State Bank of India (SBI), is offering up to 6.5 per cent interest on tax-saving FDs.
6. Punjab National Bank, Indian Bank, Indian Overseas Bank, and IDBI Bank are also offering 6.5 per cent interest. In five years, the Rs 1.5 lakh invested in these banks will grow to Rs 2.07 lakh.
