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% |
Updates:
- 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