In this article you will find the interest rates provided by major banks in India on the Tax Saver 5 year FD option provided by them.

These interest rates are as on last updated by the respective websites.

In Tax-Saver Fixed Deposit both the tenure and the interest rate for the tenure are fixed. It is unique from other fixed deposits.

The minimum amount to be invested in a tax saver fixed deposit is Rs 100. And the maximum amount that can be invested in a year is Rs. 1.5 lakhs. The minimum amount varies from bank to bank. But the maximum amount is fixed under the Income Tax Act.

The rate of interest is pre-determined, but higher than the savings account. Senior citizens earn higher interest rates than others. The interest rates for Indian citizens, HUFs and NRIs vary from bank to bank.

Given below are the interest rates offered by banks on Tax Saver FD’s:-

Bank Name

Tax Saver 5-year Fixed Deposit Interest Rate

HDFC Bank

7.10%

ICICI Bank

7.25%

Axis Bank

7.00%

Kotak Mahindra Bank

6.50%

IndusInd Bank

7.00%

Yes Bank

7.10%

IDFC Bank

8.25%

RBL

7.25%

State Bank of India

6.75%

Punjab National Bank

6.25%

Bank of Baroda

6.70%

Canara Bank

6.20%

Union Bank of India

6.75%

IDBI Bank

6.75%

Bank of India

6.35%

Central Bank Of India

6.50%

Indian Overseas Bank

6.00%

Citibank

6.00%

Oriental Bank of Commerce

6.75%

Syndicate Bank

6.50%

Bank of Maharashtra

6.50%

Bandhan Bank

6.40%

Note:-

  • Most of the banks offer additional 0.50% interest rates to senior citizens.
  • RBL bank and Bandhan bank offer 0.75% extra and IDBI bank offers 1% extra interest rates to senior citizens.
  • Some banks such as Citibank and Bank of India don’t offer additional interest rates to senior citizens. The interest rates provided by them to general public and senior citizens on Tax saving FD is same.

Summary:-

  • IDFC bank offers the highest interest rate on Tax Saver 5-year FD.

IDFC bank has been there for a long time. They have a wide spread reach. They have their branches all across India.

  • After IDFC bank, ICICI bank RBL bank offer higher interest rates.
  • HDFC bank, Axis bank and Yes Bank also have high and competitive interest rates.