Tax-Saving FDs: These largest banks offer up to 7% interest rate

It’s time to submit investment proofs to your employer to save on taxes. And the tax-saving 5-year Bank Fixed Deposits (FDs) is a good option for those in lower to medium tax bracket. It offers Section 80C tax deduction benefit, up to an investment of Rs. 1.5 lakh.
• Among the least risky options
• Tenure: 5 years
• Premature withdrawals are not allowed.
• Interest in this investment is taxable.
Below are the best interest rates offered by India’s largest banks by deposits. Source: BankBazaar.com. Data as of December 22, 2023.

HDFC Bank
Interest rate on the 5-year tax-saving FDs: 7%

ICICI Bank
Interest rate on the 5-year tax-saving FDs: 7%

Axis Bank
Interest rate on the 5-year tax-saving FDs: 7%

Canara Bank
Interest rate on the 5-year tax-saving FDs: 6.7%

Union Bank Of India
Interest rate on the 5-year tax-saving FDs: 6.7%

State Bank Of India
Interest rate on the 5-year tax-saving FDs: 6.5%

Punjab National Bank
Interest rate on the 5-year tax-saving FDs: 6.5%

Bank Of Baroda
Interest rate on the 5-year tax-saving FDs: 6.5%

Indian Bank
Interest rate on the 5-year tax-saving FDs: 6.25%

Bank Of India
Interest rate on the 5-year tax-saving FDs: 6%