When it comes to saving tax while simultaneously generating strong returns, one of the most popular options among tax savers is to invest in fixed deposit (FD) savings. tax. Fixed Tax Savings Deposits provide tax deductions under Section 80C up to ₹1.5 lakh per year in the case of a single account and a blocking period of 5 years. Investors should be aware that interest earned on Tax Savings Deposits is taxable on a tax slab basis, and TDS will be deducted when interest received or reinvested on Tax Savings FDs reaches Rs.40,000/- for regular customers and Rs.50,000/- for senior citizens in an exercise. With interest rates in the economy now on the rise after the central bank raised the repo rate to 4.90%, investing in tax-saving fixed deposits could be a good option for those who are willing to make a long-term deposit of 5 years without making premature withdrawals while seeking to save tax. Therefore, based on our research, below are the three private banks offering up to 7.10% return on fixed rate term deposits to senior citizens.