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Tax-Saving Fixed Deposits' Interest Rates Of SBI, HDFC Bank And Others

25 July, 2018 6:28 AM
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Tax-Saving Fixed Deposits' Interest Rates Of SBI, HDFC Bank And Others

Last day to file income tax returns (ITR) is July 31. If you missed out in last fiscal, this year you may invest in tax-saving fixed deposits (FD).

Fixed deposits or FDs, the fixed income instruments which are highly popular among customers, are of two types: regular FDs with the facility of premature withdrawal and tax-saving FDs which do not have the facility of premature withdrawal. Fixed deposits with premature withdrawal facility, however, do not offer income tax benefits. Tax-saving fixed deposits help you save on income tax outgo. However, tax-saving fixed deposits come with a lock-in period of five or 10 years. The deadline for filing income tax returns (ITR) for assessment year 2018-19 is round the corner (July 31).

If you did not make any tax-saving investments in the last fiscal, you should make some wise choices this year to invest your money in tax-saving schemes like fixed deposits for tenures of five or 10 years. These fixed deposits also offer attractive interest rates.

Consider this: a five-year tax-saving fixed deposit in State Bank of India (SBI) fetches you an interest rate of 6.75 per cent. As compared to this, a five-year fixed deposit with ICICI Bank offers an interest rate of 7 per cent.

(Fixed deposit interest rates mentioned above are for deposits below Rs 1 crore as mentioned on the banks' websites.)

Fixed deposits per se are a popular savings instrument. A fixed deposit can be created easily even online. Most banks offer this facility.


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