Which bank gives the highest interest for tax saving FD, know the complete list

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Bank fixed deposits are not only a popular investment among senior citizens but also a great advantage for those looking for guaranteed income. You can also invest in FDs to save tax.

Bank Fixed Deposits (FDs) are not only a popular investment option among senior citizens who are looking for guaranteed income. Also, it is popular among those who cannot take risks. But investing excessively in FD is also not good. You should decide how much you want to invest in FDs by assessing your asset allocation and goals.

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At the same time, you can also invest in FD to save tax. Investments up to Rs 1.5 lakh can be claimed for tax deduction under section 80C of the Income Tax Act. Tax saving FDs have a lock-in period of five years. And they do not allow pre-mature withdrawal. If you are thinking of investing in tax saving FDs in the coming days, then let us know where you will get the best interest.

State Bank of India (SBI):
Currently, SBI’s 5-year tax-saving FD offers an interest rate of 5.40 per cent. The interest rate for senior citizens is 6.20 per cent. This interest rate is applicable from 8 January 2021.

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Punjab and Sind Bank:
At present, interest at the rate of 5.30 per cent will be available on the 5-year tax saving FD in Punjab and Sind Bank. This interest rate is applicable from 16 September 2021.

Federal Bank:
At present, interest will be available at the rate of 5.60 percent on a 5-year tax saving FD in Federal Bank. The interest rate for senior citizens is 6.25 percent. This interest rate is applicable from 17 July 2021.

Karnataka Bank:
At present, interest will be available at the rate of 5.60 percent on a 5-year tax saving FD in Karnataka Bank. The interest rate for senior citizens is 5.90 percent. This interest rate is applicable from 1 June 2021.

South Indian Bank:
At present, interest on tax saving FD in South Indian Bank will be available at the rate of 5.65 percent. The interest rate for senior citizens is 6.15 percent. This interest rate is applicable from 8 October 2021.

Yes Bank:
At present, interest on tax saving FD in Yes Bank will be available at the rate of 6.50 percent. The interest rate for senior citizens is 7.25 per cent. This interest rate is applicable from 5 August 2021.

RBL Bank:
At present, interest will be available at the rate of 6.30 percent on a 5-year tax saving FD in RBL Bank. The interest rate for senior citizens is 6.80 percent. This interest rate is applicable from 1st September 2021.

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