Top Tax-Saving FDs: Due to the ongoing volatility in the stock market at present, investors are turning to options with safe and stable returns. In such a situation, fixed deposits (FDs) and government-backed savings schemes have become popular again. If you want safe returns as well as tax savings, then tax-saving fixed deposits (FDs) can be a great option.
Tax-saving FD is a special type of bank deposit scheme, which gives the benefit of deduction up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961. However, the lock-in period of this FD is five years, that is, during this time you cannot withdraw your deposit amount. This scheme comes with stable interest rates, so that investors do not worry about market fluctuations.
Tax-saving FD interest rates: The interest rates offered by different banks on tax-saving FDs vary.
For example: ICICI Bank: 7.25% interest to general citizens and 7.80% interest to senior citizens. HDFC Bank: 7% interest to general citizens and 7.50% interest to senior citizens. SBI: 6.5% interest to general citizens and 7.5% interest to senior citizens.
By tax saving, FDs will help you gain guaranteed returns. Tax-saving FDs will offer stable and assured interest on your investments. By doing this, you will be at a lower risk of market volatility and keep your capital safe through your tax-saving FDs. The benefits include a tax deduction of up to Rs 1.5 lakh under Section 80C. Additional interest for senior citizens: They get a higher interest rate than general citizens.
The funds cannot be withdrawn during the lock-in period of five years.
Tax is applicable on the interest earned, and TDS can also be deducted.
Tax-saving FDs are an excellent option for investors who prioritize safe returns and tax savings. This investment offers you risk-free growth as well as tax benefits.
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