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Tax-Savings FD rates: These bank fixed deposits give you up to 7.4% interest

Several banks have sharply hiked interest rates on tax-saving fixed deposits after the Reserve Bank of India raised repo rate by 90 basis points in the last couple of months.

July 15, 2022 / 03:13 PM IST
The Reserve Bank of India (RBI) raised the repo rate by 90 basis points to 4.9 percent (100 basis points = 1 percentage point) so far in this financial year. Several banks, including HDFC Bank, ICICI Bank and Deutsche Bank, hiked their interest rates on tax-saving fixed deposits after the RBI move. The small finance banks, foreign banks and smaller private sector banks now offer interest rates up to 7.4 percent on tax saving FDs, data compiled by  BankBazaar  shows.
The Reserve Bank of India (RBI) raised the repo rate by 90 basis points to 4.9 percent (100 basis points = 1 percentage point) so far in this financial year. Several banks, including HDFC Bank, ICICI Bank and Deutsche Bank, hiked their interest rates on tax-saving fixed deposits after the RBI move. The small finance banks, foreign banks and smaller private sector banks now offer interest rates up to 7.4 percent on tax saving FDs, data compiled by BankBazaar shows.
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Investments of up to Rs 1.5 lakh can be claimed for tax deduction under Section 80C of the Income Tax Act but don’t just invest to save tax. Your tax–saving FDs must fit your financial plan. Tax-saving FDs have a lock-in period of five years and premature withdrawals are not allowed.
Ujjivan Small Finance Bank
Ujjivan Small Finance Bank offers interest rates of up to 7.4 percent on tax-saving deposits. Among small finance banks, this bank offers the best interest rates. A sum of Rs 1.5 lakh invested grows to Rs 2.16 lakh in five years.
Deutsche Bank
Deutsche Bank offers interest rates of up to 7 percent on tax-saving deposits. Among foreign banks, this bank offers the best interest rates. A sum of Rs 1.5 lakh invested grows to Rs 2.12 lakh in five years.
AU Small Finance Bank
AU Small Finance Bank is offering interest rates up to 6.9 percent on tax-saving deposits. A sum of Rs 1.5 lakh grows to Rs 2.11 lakh in five years.
Suryoday_SmallFinanceBank12802
Suryoday Small Finance Bank is offering interest rates up to 6.75 percent on tax-saving deposits. A sum of Rs 1.5 lakh grows to Rs 2.10 lakh in five years.
DCB BANK
DCB Bank is offering interest rates of up to 6.6 percent on tax-saving deposits. A sum of Rs 1.5 lakh grows to Rs 2.08 lakh in five years.
indusind_bank_bank1
IndusInd Bank and Yes Bank are offering interest rates up to 6.5 percent on tax saving deposits. A sum of Rs 1.5 lakh grows to Rs 2.07 lakh in five years.
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A host of smaller banks are offering higher interest rates to garner new deposits. The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI, guarantees investments in fixed deposits of up to Rs 5 lakh.
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The data as of 29 June 2022 has been compiled from websites of the banks. BankBazaar has accounted for FDs belonging to only those foreign, private, small finance and public sector banks that are listed on the BSE. Banks, for which data is not available on their websites, were not considered. The rates are for tax-saving five-year FDs for non-senior citizens.
Hiral Thanawala is a personal finance journalist with 9 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
first published: Jul 15, 2022 09:24 am
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