Tax Saver Fixed Deposit Interest Rates: A Comparison of Rates Offered by Banks and Small Finance Banks

Strategic Insights -

Senior citizens and individuals looking for tax-saving investments can consider fixed deposits as a viable option. Tax-saver FD qualifies for deduction under Section 80C of the Income Tax Act, as long as the investment amount is up to Rs 1.5 lakh. In recent months, many banks have hiked their interest rates for fixed deposits of different tenors. As of now, several banks and small finance banks are offering attractive interest rates on 5-year tax-saver fixed deposits. Here's a comparison of interest rates offered by various banks and small finance banks.

Key Takeaways:

  • Suryoday Small Finance Bank is offering 9.6% interest on a five-year tax-saving FD to senior citizens, which is more than 2% higher than what is being offered by top banks like HDFC Bank and State Bank of India.
  • DCB Bank, Suryoday Small Finance Bank, Unity Small Finance Bank, Utkarsh Small Finance Bank, and Fincare Small Finance Bank are offering over 8% interest on 5-year tax-saver fixed deposits to senior citizens.
  • State Bank of India is offering 6.5% interest to general citizens and 7% interest to senior citizens on 5-year Tax-Saver Fixed Deposit.
  • HDFC Bank is offering 7% interest to general citizens and 7.5% interest to senior citizens on 5-year Tax-Saver Fixed Deposit.
  • Axis Bank is offering 7% interest to general citizens and 7.75% interest to senior citizens on 5-year Tax-Saver Fixed Deposit.

Statistics:

  • Suryoday Small Finance Bank is offering 9.1% interest to general citizens and 9.6% interest to senior citizens on 5-year Tax-Saver Fixed Deposit.
  • Ujjivan Small Finance Bank is offering 7.2% interest to general citizens and 7.95% interest to senior citizens on 5-year Tax-Saver Fixed Deposit.
  • Unity Small Finance Bank is offering 7.65% interest to general citizens and 8.15% interest to senior citizens on 5-year Tax-Saver Fixed Deposit.
  • Fincare Small Finance Bank is offering 8% interest to general citizens and 8.6% interest to senior citizens on 5-year Tax-Saver Fixed Deposit.
  • As of now, several banks are offering 6.5-7.75% interest on 5-year tax-saver fixed deposits to general citizens and senior citizens.

Sources:

  • Bank Bazaar (Multiple mentions)
  • Disclaimer in the original text
  • IE Online Media Services Pvt. Ltd. (Copyright 2023)
  • Contify.com (Distributed by)