Time deposits have long been the first choice for risk averse investors in India. They allow investors good, guaranteed returns, while the capital is kept safe with the banks. With FDs you can choose the duration of your deposits from a minimum commitment of 7 days up to 10 years. The interest earned on FDs can be further reinvested in the recurring FD for more benefits. While FD rates have fallen in recent years, there are many private banking companies that offer returns of up to 6.3 percent on tax-saving FDs with a 5 year lock-up period. Investments up to Rs 1.5 lakh are eligible for deduction under the provision of 80C of the Income Tax Act. However, these FDs are not entitled to early withdrawal. Here we take a look at some of the best private lenders offering the best rates on FDs
The return rate of the RBL Bank of the tax-saving FD is the best in the segment and goes up to 6.8 percent. While the interest rate for regular customers is 6.3, seniors receive an additional 0.5 percent interest on their tax savings. The regular FD rate of the RBL Bank rises to 5.75 percent. A deposit of Rs 1.5 lakh in RBL Bank’s tax savings program will grow to Rs 2.05 lakh in five years.
For fixed-term deposits with a minimum term of 5 years, Yes Bank offers senior customers a return of up to 6.25 percent plus 0.75 interest. A sum of Rs 1.5 lakh invested in Yes Bank’s FD switch to Rs 2.05 lakh with the earned returns
The IDFC Bank offers interest of up to 6 percent on tax-saving deposits and an additional 0.5 interest for senior customers. A deposit of Rs 1.5 lakh with IDFC Bank’s FD program will grow to Rs 2.02 lakh in five years.
Axis Bank offers an interest rate of up to 5.75 on all tax-saving deposits.
Prior to completing the program, investors are encouraged to conduct market research that goes through the terms and conditions of various banks offering FDs.
Read all the latest news, breaking news and coronavirus news here.