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Tax-Saving Fixed Deposits' Interest Rates Of SBI, HDFC Bank And Others

Last day to file income tax returns (ITR) is July 31. If you missed out in last fiscal, this year you may invest in tax-saving fixed deposits (FD).

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Tax-Saving Fixed Deposits' Interest Rates Of SBI, HDFC Bank And Others

Tax-saving fixed deposits help you save on income tax outgo.


Fixed deposits or FDs, the fixed income instruments which are highly popular among customers, are of two types: regular FDs with the facility of premature withdrawal and tax-saving FDs which do not have the facility of premature withdrawal. Fixed deposits with premature withdrawal facility, however, do not offer income tax benefits. Tax-saving fixed deposits help you save on income tax outgo. However, tax-saving fixed deposits come with a lock-in period of five or 10 years. The deadline for filing income tax returns (ITR) for assessment year 2018-19 is round the corner (July 31).

If you did not make any tax-saving investments in the last fiscal, you should make some wise choices this year to invest your money in tax-saving schemes like fixed deposits for tenures of five or 10 years. These fixed deposits also offer attractive interest rates.

Consider this: a five-year tax-saving fixed deposit in State Bank of India (SBI) fetches you an interest rate of 6.75 per cent. As compared to this, a five-year fixed deposit with ICICI Bank offers an interest rate of 7 per cent.

Given below are fixed deposit interest rates of 10 major banks including SBI, HDFC Bank and ICICI Bank:

(All figures in per cent)

Banks5-year10-year
SBI6.756.75
HDFC Bank66
ICICI Bank77
PNB6.256.25
Axis Bank7%7%
Kotak Mahindra Bank6.56.5
YES Bank7.17.1
Bank of Baroda6.76.6
IDBI Bank6.756
RBL Bank7.257.25

(Fixed deposit interest rates mentioned above are for deposits below Rs 1 crore as mentioned on the banks' websites.)

Fixed deposits per se are a popular savings instrument. A fixed deposit can be created easily even online. Most banks offer this facility.

Post offices also offer the facility of a fixed deposit account.

Small Finance banks like AU Small Finance Bank and Suryoday Bank also offer fixed deposit accounts.



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