Let us now look at some of the top banks which provide tax saving Fixed deposits with high interest rates. Note: Tax saving exemption will only be available for the primary account holder. It can be held either in individual names or joint names. Who can invest in Tax Saving Fixed Deposit ? Only Indian resident individuals and Hindu Undivided Families (HUFs) can invest in Tax saving FDs. Interest rates to Senior citizens - additional 0.50% interest.Premature withdrawal allowed after a 5 year lock-in period.Long-term tenure of 5 years to 10 years.1.5 lac under section 80C of Income Tax Act, 1961. Best tax saving Fixed Deposit rates for you.Top 5 banks that provide tax saving fixed deposits.Who can invest in tax saving fixed deposits ?.Key features of tax saving fixed deposit.Investment in tax saving bank fixed deposits can be claimed as deduction upto Rs 1.5 Lakhs under section 80C of Income Tax Act,1961.īefore we reveal the list of the best tax saving fixed deposits with high interest rate, let us understand the following:.Tax saving fixed deposit is one of the best tax saving options for salaried individuals as these provide dual benefits: This is when banks introduced Tax Saving Fixed Deposits. But since TDS was applicable on bank deposits, they had started losing their charm for the Indian investors. Majority of Indians are still risk-averse and would prefer investment options which would guarantee the safety of capital alongside interest income like a bank deposit. Best Tax Saving Bank Fixed Deposits According to a research conducted by the RBI in March 2020, 52% of Indians preferred investing in bank deposits, which is not surprising considering the value of bank deposits had increased by 10.1% in 2019.

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