5 Best Tax Saving Fixed Deposits To Bet In 2022

Investment

oi-Vipul Das

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The most common strategy for long-term bond investors who want to save Section 80C tax while earning safe returns on their deposits is to invest in fixed-rate term deposits. Depositors can save tax benefits under Section 80C if they invest up to Rs 1.5 lakh for a deposit term of five years. The most tempting aspect of tax-saving deposits is that after the ELSS, they are the most preferred tax-saving mechanism. However, it should be noted that tax savings deposits have a lock-up period of 5 years, which means that early withdrawals are not permitted. On the risk front, DICGC guarantees principal protection on the principal and interest amount of your tax saving deposits up to Rs 5 lakh. Tax-saving DFs are a good option for individuals who want to build wealth for their retirement age because they offer low risk and assured returns. Based on extensive research, these are the top 5 public, private and small financial banks that offer the best tax-saving interest rates.

Top 5 Public Sector Banks Offering the Best Yields on Tax Savings Deposits

Top 5 Public Sector Banks Offering the Best Yields on Tax Savings Deposits

Along with SBI, the top 5 public sector banks now offering the highest interest rates on tax-saving deposits are listed below.

Banks Regular interest rate per year Rates for the elderly per year Wef
Union Bank of India 5.40% 5.90% 09/01/2021
Bank of Punjab and Sindh 5.30% 5.80% 09/16/2021
SBI 5.30% 5.80% 15.01.2022
Bank of Baroda 5.25% 5.75% 16.11.2020
Canara Bank 5.25% 5.75% 17.01.2022
Source: Bank websites
Top 5 Private Sector Banks Offering the Best Yields on Tax Savings Deposits

Top 5 Private Sector Banks Offering the Best Yields on Tax Savings Deposits

The top five private sector banks that currently offer the highest interest rates on tax-saving deposits are listed below.

Banks Regular interest rate per year Rates for the elderly per year Wef
Yes Bank 6.25% 7.00% 04.01.2022
RBL Bank 6.30% 6.80% 03.02.2022
First IDFC Bank 6.25% 6.75% 21.01.2022
Bandhan Bank 6.25% 7.00% 12.01.2022
IndusInd Bank 6.00% 6.50% 23.07.2021
Source: Bank websites
Top 5 Small Financial Banks Offering Highest Returns on Tax Savings Deposits

Top 5 Small Financial Banks Offering Highest Returns on Tax Savings Deposits

Below is a list of the top five small financial banks that now offer the best interest rates on tax-saving deposits.

Banks Regular interest rate per year Rates for the elderly per year Wef
Bank Jana Small Finance 6.75% 7.55% 11.01.2022
Utkarsh Small Finance Bank 6.75% 7.25% 20.01.2022
Fincare Small Corporate Bank 6.75% 7.25% October 25, 2021
Suryoday Small Finance Bank 6.75% 7.00% September 09, 2021
Northeast Small Finance Bank 6.50% 7.00% 27.01.2022
Source: Bank websites

Article first published: Sunday, February 6, 2022, 11:19 a.m. [IST]

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