The financial year 2023-24 is here, and it’s time to plan your taxes. To save on taxes, you need to make investments by March 31, 2024.
Many companies require their employees to submit their investment declarations in January-February.
If you haven’t started yet, consider investing in a tax-saving fixed deposit to meet your financial goals.
In this article, we’ll explore the interest rates and returns on 5-year tax-saving fixed deposits offered by various major banks in the country.
IndusInd and Yes Bank Lead with 7.25% Interest
IndusInd Bank and Yes Bank are offering the highest interest rates, reaching up to 7.25% on their tax-saving fixed deposits.
These private banks provide the most lucrative returns.
If you invest Rs 1.5 lakh here, it will grow to Rs 2.15 lakh in five years.
HDFC, ICICI, and Axis Offer 7% Interest
Among the prominent private sector banks, HDFC Bank, ICICI Bank, and Axis Bank stand out by offering interest rates of up to 7% on tax-saving fixed deposits. With an initial investment of Rs 1.5 lakh, you can expect it to grow to Rs 2.12 lakh in five years.
Union Bank and Canara Bank Provide 6.7% Interest
Union Bank of India and Canara Bank, both public sector banks, offer competitive interest rates of up to 6.7% on tax-saving fixed deposits.
These banks are excellent options for those looking for safety and returns.
A deposit of Rs 1.5 lakh will grow to Rs 2.09 lakh in five years.
Federal Bank and SBI offer 6.5% Interest
Federal Bank, as well as major public sector banks like State Bank of India (SBI) and Bank of Baroda (BOB), provide interest rates of up to 6.5% on tax-saving fixed deposits.
Other banks offering the same rate include Punjab National Bank, Indian Bank, Indian Overseas Bank, and IDBI Bank.
An investment of Rs 1.5 lakh in these banks will appreciate to Rs 2.07 lakh in five years.
By comparing these interest rates, you can make an informed decision on the best bank to invest in a tax-saving fixed deposit for the upcoming financial year.