Tax-saving FD: These banks are offering the highest interest rates on tax-saving fixed deposits
By
, ET Online|
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Tax-saving fixed deposits
Risk-averse investors and taxpayers in lower tax brackets have the opportunity to invest in tax-saving fixed deposits (FDs). The Reserve Bank of India raised repo rates by 25 basis points to 6.50%, and banks followed suit by raising the rates on fixed deposits. Section 80C allows tax deductions of up to Rs 1.5 lakh on bank fixed deposits with tax advantages. These FDs do, however, have a 5-year lock-in.
The list has been compiled by ETIG (Interest rates as on February 16, 2022).
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DCB Bank
On deposits under Rs 2 crore for terms ranging from 7 days to 10 years, DCB Bank offers interest rates between 3.75% and 7.85%. The bank offers a 7.60% interest rate on tax-saving fixed deposits.
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IndusInd Bank
IndusInd Bank offers interest rates between 3.50% to 7.50% on deposits below Rs 2 crore for tenure ranging between 7 days to 10 years. For tax-saving fixed deposits, the bank offers an interest rate of 7.25%.
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AU Small Finance Bank
AU Small Finance Bank offers interest rates between 3.75% to 7.75% on deposits below Rs 2 crore for tenure ranging between 7 days to 10 years. For tax-saving fixed deposits, the bank offers an interest rate of 7.20%.
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Axis Bank
On deposits under Rs 2 crore for terms ranging from 7 days to 10 years, Axis Bank offers interest rates between 3.50% and 7.26%. The bank offers a 7% interest rate on tax-saving fixed deposits.
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City Union Bank
City Union Bank offers interest rates between 5% to 7.75% on deposits below Rs 2 crore for tenure ranging between 7 days to 10 years. For tax-saving fixed deposits, the bank offers an interest rate of 7%.
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Other banks tax saving FD rates
After the recent hike, the SBI offers an interest rate of 6.50% on tax-saving FDs, While, HDFC Bank and ICICI Bank offer an interest rate of 7% on tax-saving FDs.