Since interest rates are fairly high these days, the 5 year tax saving fixed deposit is also a good option for people who want to save using the 80C section. (Read: Section 80C Tax Saving Infographic)
This has a lock in period of 5 years right now, and there are several banks that give you more than 9% on your deposits, and an additional 0.50% for senior citizens in most cases.
The highest rate I could find was City Union Bank which has revised their rates just two days ago, and offer 9.50% on tax saver fixed deposits.
Here is a list of the top tax saver fixed deposits that I could find. If you know of a bank that offers more than these then please leave a comment and I’ll update the table.
|City Union Bank||9.50%|
|TamilNad Mercantile Bank||9.25%|
|State Bank of Travancore||9.00%|
|Indian Overseas Bank||9.00%|
|Bank of Baroda||9.00%|
|State Bank of Hyderabad||9.00%|
|South Indian Bank||8.75%|
|Karur Vysya Bank||8.75%|
|Bank of Maharashtra||8.75%|
|Central Bank of India||8.50%|
|Punjab National Bank||8.50%|
- Added Deutsche Bank per Vimal’s comment.
- Added TamilNad Mercantile Bank per Vijay’s comment and corrected rate for SBH per Mohan AV’s email.Â