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.
DCB Bank
DCB Bank offers a fixed deposit option allowing investors to make a minimum deposit of ₹1000 and a maximum investment of Rs.150,000. One can deposit money in the DCB Bank Tax-Saver FD for 5 years or more, and according to the guidelines, no early withdrawals are allowed. As of May 21, 2022, DCB Bank offers an interest rate of 7.10% on fixed rate term deposits to senior citizens, while regular customers will receive an interest rate of 6.60%. DCB Bank does not allow automatic renewal of tax-saving term deposits and no loans can be taken on the account.
Yes Bank
The bank’s tax saving fixed rate fixed deposit has a low minimum deposit requirement of ₹1000 and a maximum deposit limit of ₹150,000 in one fiscal year. This tax-saving deposit program has a 5-year lock-up period and nominating facility. Yes Bank offers tax-saving fixed deposit accounts that can be opened through Internet Banking, Phone Banking or at the local branch. Yes Bank is offering a 7.00% return on tax-saving term deposits to senior residents, while regular customers receive a 6.25% return starting June 6, 2022. interest have monthly or quarterly payment options, and the account balance can be reinvested at maturity.
RBL Bank
RBL Bank Tax Savings Fixed Deposit Accounts can be opened with amounts ranging from Rs. 100 to Rs. 1,50,000 in multiples of Rs. 100. RBL Bank Tax Savings Fixed Deposit has a hold term 60 months and an appointment option. As the name suggests, the RBL Bank Tax Savings Deposit Program does not allow partial or premature withdrawals, and in the case of joint deposits, the tax benefit under 80C will only be available to the primary cardholder. . RBL Bank currently offers a 6.80% return on its FD tax savings program to seniors and a 6.30% return to regular consumers. These interest rates are effective as of June 8, 2022.
Source: Interest rates were taken from official bank websites.
