Best 80C Tax Saving Fixed Deposits for 2012 – 13

by Manshu on January 4, 2013

in Fixed Deposits

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.

Bank Interest Rate
City Union Bank 9.50%
Deutsche Bank 9.50%
TamilNad Mercantile Bank 9.25%
State Bank of Travancore 9.00%
IDBI Bank 9.00%
Indian Overseas Bank 9.00%
Vijaya Bank 9.00%
Bank of Baroda 9.00%
State Bank of Hyderabad 9.00%
South Indian Bank 8.75%
SBI 8.75%
Karur Vysya Bank 8.75%
Bank of Maharashtra 8.75%
J&K Bank 8.50%
Central Bank of India 8.50%
Kotak Bank 8.50%
Canara Bank 8.50%
Punjab National Bank 8.50%
ICICI Bank 8.50%
Allahabad Bank 8.50%
Axis Bank 8.25%


  • 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. 

{ 14 comments… read them below or add one }

Vimal raj January 4, 2013 at 8:03 AM

Deutche bank also provides 9.50%.

Two days ago only I have invested in CUB. Thanks for the useful information.


Manshu January 4, 2013 at 8:22 AM

Thanks Vimal. Made the update.


Vijay January 5, 2013 at 10:57 AM

CUB is a private bank operating out of Kumbakonam. Please ensure safety of deposits before investing in any Bank which offers attractive returns.


Vidhya Prakash January 4, 2013 at 9:04 AM
Rakesh January 4, 2013 at 10:10 PM

5 Years is quite a decent period. Why fixed deposits when you can invest in ELSS.
You can easily expect returns in the range of 12-15%. I have earned decent returns via ELSS.


Vijay January 5, 2013 at 11:08 AM

Manshu, also offers 9.25%.



Ruchika January 6, 2013 at 10:33 AM

There are banks offering more than 9.5% for senior citizens for tax saver FD. Check this out:


Praveen Raghav January 9, 2013 at 3:47 AM

Oriental Bank of Commerce offering 9.1% under Tax Saving – Term Deposit Scheme
Bank of India offering 9.0% under Star Sunidhi Tax-Saving Deposit Scheme


rahul January 10, 2013 at 10:41 AM

thanks for the info ..
can u please tell me wat is the tax slab % on these returns ???


Mayank Gupta January 10, 2013 at 12:34 PM

I dont feel any risk or anything which should stop investors from invested in long term fixed deposits with City Union Bank which provides highest interest rate. CUB is a growing bank of South based in Tamil Nadu and is expanding its operations across India now


karthik January 15, 2013 at 10:56 AM

You can Add NHB which is also giving 9.25%


ranjan January 16, 2013 at 6:55 PM

vijya bank also providing @ 9%


ranjan January 16, 2013 at 6:57 PM



KANCHAN March 20, 2013 at 1:37 AM

Lakshmi Villas Bank is giving 09.50% per Annum on Tax saving fix Deposits


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