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
Lakshmi Villas Bank is giving 09.50% per Annum on Tax saving fix Deposits
ok
vijya bank also providing @ 9%
You can Add NHB which is also giving 9.25%
I dont feel any risk or anything which should stop investors from invested in long term fixed deposits with City Union Bank which provides highest interest rate. CUB is a growing bank of South based in Tamil Nadu and is expanding its operations across India now
thanks for the info ..
can u please tell me wat is the tax slab % on these returns ???
Oriental Bank of Commerce offering 9.1% under Tax Saving – Term Deposit Scheme
Bank of India offering 9.0% under Star Sunidhi Tax-Saving Deposit Scheme
There are banks offering more than 9.5% for senior citizens for tax saver FD. Check this out: http://www.myfamilyinvestment.com/2011/10/best-tax-saver-fd-fixed-deposit-for.html
Manshu,
http://www.tmb.in/ also offers 9.25%.
Regards
Vijay
5 Years is quite a decent period. Why fixed deposits when you can invest in ELSS.
You can easily expect returns in the range of 12-15%. I have earned decent returns via ELSS.
http://www.deutschebank.co.in/Interest_Rates.html
Manshu,
Deutche bank also provides 9.50%.
Two days ago only I have invested in CUB. Thanks for the useful information.
Thanks Vimal. Made the update.
CUB is a private bank operating out of Kumbakonam. Please ensure safety of deposits before investing in any Bank which offers attractive returns.