Tax-Saving Bank Fixed Deposits (FDs) By SBI, ICICI Bank, HDFC Bank Explained
Income tax-saving bank fixed deposits (FDs) help a customer save on income tax outgo. Bank fixed deposits, which are hugely popular among investors, allow investors to save their money and earn an interest income on the same. Regular fixed deposits offer a premature withdrawal facility while tax-saving fixed deposits require a minimum lock-in period of five years. Premature withdrawals or loans are not allowed on tax-saving fixed deposits. Under Section 80C of the Income Tax Act, 1961, investors can claim a maximum of Rs 1.5 lakh as tax benefit through tax-saving fixed deposits.
(Also Read: Latest Bank FD Interest Rates Offered By SBI, HDFC Bank, ICICI Bank, Indian Overseas Bank)
Banks like State Bank of India (SBI), ICICI Bank and HDFC Bank have different interest rates for tax-saving fixed deposits. Given below are interest rates on tax-saving fixed deposits of SBI, ICICI Bank and HDFC Bank:
Tax-saving fixed deposits interest rates of State Bank of India (SBI)
SBI tax-saving scheme requires a minimum deposit Rs. 1,000 or multiples thereof. The maximum deposit should not exceed Rs. 1,50,000 in a year, SBI said on its website, sbi.co.in. The minimum tenor is five years and the maximum is 10 years. The following are the interest rates on deposits below Rs 1 crore:
| Tenors | Existing for Public w.e.f. 28.02.2018 | Revised For Public w.e.f. 28.03.2018 | Existing for Senior Citizens w.e.f. 28.02.2018 | Revised for Senior Citizens w.e.f. 28.03.2018 |
| 5 years and up to 10 years |
6.5
|
6.75
|
7
|
7.25
|
|
Single Deposit
|
Rates of Interest (% p.a.) w.e.f April 11, 2018 |
| Tenure Period | ₹ 1 crore to less than ₹ 5 crore |
| 5 years 1 day to 7 years | 6.6 |
| 7 years 1 day to 10 years | 6.6 |
| Period | Rs 5 crore - Rs 10 crore |
| 3 year 1 day to 5 years | 6.55% |
| 5 year 1 day to 10 years | 6.05% |