Tax-Saving FDs Interest Rates: SBI Vs ICICI Bank Vs HDFC Bank Vs Post Offices

Tax-Saving FDs Interest Rates: SBI Vs ICICI Bank Vs HDFC Bank Vs Post Offices

Regular fixed deposits (FDs), which are popular among investors, are different from their tax-saving counterparts. Tax-saving fixed deposits (FDs) require customers to lock-in their investment for a minimum period of five years. Interest rates on tax-saving fixed deposits (FDs) are no doubt attractive but a premature withdrawal is not allowed. So while you can redeem regular fixed deposits before their maturity period, tax-saving fixed deposits cannot be redeemed before maturity. Interest income earned on fixed deposits is taxable. Key banks like State Bank of India (SBI), ICICI Bank, HDFC Bank and post offices offer the option of tax-saving fixed deposits.

Given below is a comparison of interest rates on tax-saving fixed deposits (FDs) of SBI, ICICI Bank, HDFC Bank and post offices

State Bank of India (SBI) tax-saving fixed deposit (FD) interest rates

The following interest rates are from sbi.co.in

(All figures in % per annum)

Tenors Revised For Public w.e.f. 28.03.2018 Revised for Senior Citizens w.e.f. 28.03.2018
5 years and up to 10 years 6.75 7.25

ICICI Bank tax-saving fixed deposit (FD) interest rates
Interest rates on domestic, NRO and NRE deposits without premature withdrawal facility (Rs.1 crore and above), according to icicibank.com.

Single Deposit Rates of Interest (% p.a.) w.e.f May 15, 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

HDFC Bank tax-saving fixed deposit (FD) interest rates
Domestic / NRO and NRE Deposit Rates < 5 Cr, according to hdfcbank.com.

Period < 1 Crore
Interest Rate
(per annum)
**Senior Citizen Rates
(per annum)
5 Years 1 Day – 8 Years 6% 6.50%
8 Years 1 Day – 10 Years 6% 6.50%

Post offices tax-saving fixed deposit (FD) interest rates
On a five-year tenure fixed deposit, post offices pay 7.4 per cent interest rate, according to India Post’s website, indiapost.gov.in.

The income tax benefits that accrue on these fixed deposit accounts are on the basis of Section 80C of Income Tax Act, 1961.

Source by:-ndtv

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