Best Tax Saving FD Rates U/s 80C

Tax Saving FD (Fixed Deposits) is one of the most popular way to save taxes u/s 80C of income tax. These are like normal Fixed Deposit with banks but is labeled as “Tax Saving FD” while making the deposit.

Tax Saving FD: Advantages

Following reasons make Tax Saving fixed deposit attractive to investors;

1. Convenient to invest. ICICI Bank, SBI, HDFC Bank, etc offers online facility for Tax Saving FD
2. Redemption on maturity comes directly to your bank account
3. High Safety – FD up to Rs 5 Lakh is insured

Tax Saving FD: Disadvantages

1. There are lot of competing products like EPF, PPF, ELSS to exaust the investment of Rs 1.5 Lakh u/s 80C
2. The interest earned is taxable
3. Cannot be withdrawn prematurely
4. Cannot be pledged to secure loan or as security

Tax Saving FD Interest Rate

As of July 5, 2020 banks are offering 4.00% – 7.35% for general public and 4.50% – 7.85% for Senior Citizens.

1. The…