One of the more popular options covered under Section 80C is the tax saver fixed deposits.
These have a term of at least five years, and given the high interest rate environment we’re currently in – you can find a lot of banks that offer more than 9% on these tax saving fixed deposits.
Here is a list of some of the higher paying ones that I found, and you can see that there are quite a few options that offer over 9.25% if you are a senior citizen.
Even otherwise, there should be a bank near you somewhere that offers 9%, and that’s pretty good as well.
|1||Tamil Nadu Mercantile Bank||10.00%||10.25%|
|2||City Union Bank||9.50%||9.50%|
|3||State Bank of Travancore*||9.50%|
|6||South Indian Bank||9.25%||9.75%|
|10||Central Bank of India*||9.09%|
|11||Punjab and Sind Bank||9.05%|
|12||Lakshmi Vilas Bank||9.00%||9.25%|
|13||Karur Vysya Bank||9.00%||9.25%|
|17||Bank of Baroda||9.00%|
|19||Indian Overseas Bank||9.00%|
|25||Bank of India*||8.75%|
|26||Dhanalaxmi BankÂ *||8.25%|
Most banks specify the rate of interest on tax saver fixed deposits on their websites, and then some others say that the rate of interest of the tax saver FDs are the same as other fixed deposits with a 5 year maturity.
Then there are some banks that don’t have anything about tax saver FDs on their website. In the above list those are indicated by an asterisk. For these banks I have included their 5 year interest rate as the rate of interest for the FDs. I’ve assumed that these banks do offer tax saver FDs, and haven’t updated their website, so if you know otherwise then please let me know and I’ll update this list.
Also, a slightly dated ET article mentioned some other points about tax saving FDs – chief among them, that they don’t offer overdraft, sweep in facility, and bank loans that might be of interest as well.