Which is the “Highest Tax Saving Bank FD Rates U/S Sec.80 C” for investment to save the tax? This is the common doubt under many. Hence, let us dig and find out the Highest Tax Saving Bank FD Rates U/S Sec.80 C.
Features of Tax Saving Bank FD Rates U/S Sec.80C
- Individuals and HUF can invest in such Tax Saving Bank FDs.
- Minimum amount to be invested varies from bank to bank.
- Lock-in period of such FDs is minimum of 5 years. Premature withdrawals or loan against these FD’s are not allowed.
- You can choose any Public Sector or Private Sector Banks to invest. However, you can’t invest in any Co-Operative or Rural Banks.
- You can hold these FDs either in single or joint holding. However, the tax benefits is available only for the first holder and also the post-maturity taxation will be applicable to the first holder only.
- Interest earned from such FDs will be taxable under the income head of “Income from Other Sources”.
- There is no maximum limit to invest. However, the maximum benefit available under Sec.80C is up to Rs.1,50,000 for a FY.
- Auto-renewal facility is not available for tax saving FDs.
- You can avail the nomination facility for this FD.
- You can avail month, quarterly or choose re-invest of interest option also.
- TDS is applicable on such FDs.
- If you are exempt from paying tax, you need to present Form 15G/H when you open a Fixed Deposit and subsequently at the beginning of the following financial year.
- Usually, Banks offer a higher interest rate on such Tax Saving FDs. The reason is that 5-year lock-in.
- Usually, Banks offer higher interest rate for senior citizens.
- The deposit may be transferred from the issuing branch to another branch but not transferable from one bank to another bank.
Highest Tax Saving Bank FD Rates U/S Sec.80 C – February 2018
Now you fully understood the feature of Tax Saving Bank FDs. Let us move on and find out the Highest Tax Saving Bank FD Rates U/S Sec.80 C – February 2018.
You noticed from above table that Citi Bank Offers the lowest Bank FD Rates. I tried to highlight in green for those banks who are offering more than 7% returns for both general public and senior citizens. Below are the findings to shortlist the Highest Tax Saving Bank FD Rates U/S Sec.80 C – February 2018.
- For the general public, NSC offers the highest interest rate of 7.6%.
- Then comes the IDFC Bank which offers 7.20% for the general public.
- The highest interest rate for senior citizens will be available with IDFC Bank, which offers 7.7% returns. Next comes the NSC, which offers 7.6%.
Hope this information will make your life easy in shortlisting the Highest Tax Saving Bank FD Rates U/S Sec.80 C – February 2018. Do remember that we have visited the respective bank portal and based on the data we published this post. However, we caution to all readers to cross-check the available interest rate before taking the decision of investment.
If you are looking for Non-Tax Saving FDs, then refer our latest post “Highest Bank FD Interest Rates – February 2018 latest list“.
In this post, I will try to update the Live Budget 2018 Highlights as and when it will be declared by Finance Minister Shri. Arun Jaitley.
- Achieved 7.5% average growth after 3 years of NDA Regime.
- This year budget will concentrate on rural, improving education, rural health and agriculture sector-FM.
- Exports to grow at 15% in FY 2018.
- MSP for Kharif crops to be 1.5 *Cost of Procure.
- Want farmers to earn 1.5 times of their cost of procuring cost.
- 470 APMCs will be connected to eNAM for transparent price discovery.
- eNAM will be free from APMC regulatory.
- Allocation to food processing doubled from 715 Cr to 1400 cr.
- Operation “Green” to be launched. Agri logistics, professional management, Rs. 500 cr. – make potatoes and onions everywhere.
- Ujwala Yojana will now target 8 Cr poor families.
- Rs.16000 Cr to Pradhan Mantri Soubhagya Yojana.
- Plan to move from Blackboard to digital board education.
- Ekalavya Schools on par with Navodaya schools will be launched.
- Prime Minister Research Fellow scheme will be launched for BTech Students.
- National Health Protection Scheme up to Rs.5 lakh coverage for each family per year covered under health care programme to 10 Cr poor families.
- Rs.500 per month to TB patients.
- Mudra loan targetted to Rs.3 lakh crore for next FY.
- Women only have to contribute only 8% of their basic pay compared to 12% by the employer during first 3 years.
- Govt will contribute 12% of the contribution to EPF for new employees.
- SEBI will consider mandate getting 1/4th of financing from bond markets.
- Rs 11,000 crore allocated for Mumbai suburban railways.
- The government will not consider Crypto Currency as legal tender.
- Tolls payment will be pay as you use format.
- All four general insurance companies will be be merged and listed.
- Gold Monetization Scheme will be revamped.
- MPs salary linked to index.
- No change in the individual personal tax bracket.
- The standard deduction of Rs.40,000 for salaried and pensioners.
- Senior Citizen Health Insurance deduction under Sec.80D raised to Rs.50,000.
- No TDS for interest income for Senior Citizens.
- Pradhan Mantri Vaya Vandana Yojana extended up to 2020.
- LTCG tax on equity will be if the gain is more than Rs.1 lakh at 10% without indexation.
- Health and Education cess increased to 4%.
- Abolish education and higher education cess.
- Customs duty on mobile phones increased from 15% to 20%.
- Dividend Distribution tax on Equity Mutual Fund.
Which bank offers Highest Bank FD Interest Rates for February 2018? Let us shortlist the bank based on current interest rate.
Features of Bank FDs (Fixed Deposits)
- You can book the FD from minimum 7 days to 10 Years.
- However, few banks like Ratnakar Bank and IDBI Bank Offers FDs up to 20 years.
- Interest on such FDs is quarterly compounding (if your FD is at least more than 6 months). Hence, let us say the Bank FD rate is 8% for 10 Years FD, then the effective rate will be 8.24%.
- You can request for interest payout based on your requirement like monthly or on a quarterly basis also.
- Banks offer the loan or Over Draft (OD) facility on your FD. The interest on such loan or OD will be around 0.5% to 1% more than your FD rate.
- Such FDs attract TDS (Tax deduction at source) at the rate of 10%, if the interest income is more than Rs.10,000 in a financial year per bank.
- There is a misconception among many of us that avoiding TDS means avoiding income tax. However, even if you avoid TDS, the income from Bank FD will be taxable income for you and you have to pay the tax as per your income tax slab.
- Check for penalty clause on premature closure.
- Never forget to use the nomination facility.
- There are options like re-investment at maturity or credit back to your bank account. Hence, choose the option wisely based on your requirement. You can re-invest either only principal or only interest.
For your ease of understanding, I am dividing the Bank FD rates as below.
# FD rates for less than a year.
#FD rates for 1-2 years.
# FD rates for 2-5 years.
# FD rates for 5-10 years.
#FD rates for more than 10 years.
Highest Bank FD Interest Rates – February 2018
Now let us see which bank offers the Highest Bank FD Interest Rates for the month of February 2018.
In this below table, I listed all major banks. Also, my priority is to list the FD rates which can be available for premature.
You noticed that for less than a year FDs, the interest rate varies from 5% (United Bank of India) to 7% (RBL Bank). Same way, for 1 Yr to 2 Yrs FDs, the interest rate varies from 6.25% (HDFC Bank) t0 7.1% (RBL Bank). For 2 Yrs to 3 Yrs FDs, the interest rate varies from 6% (SBI) to 7.1% (RBL Bank). For 3 Yrs to 5 Yrs FDS, the interest rate varies from 6% (HDFC Bank and Bank Of Maharashtra) to 7.25% (DCB Bank). For more than 5 Yrs FDs, the interest rate varies from 6% (Canara Bank) to 7.1% (RBL Bank).
In my view, open the FD where you have internet banking facility. This is completely hassle-free and even you can liquidate the FD at any point of time (by paying premature closure penalty) using the same internet banking facility.
Otherwise, if you book the FD physically visiting the Bank, then some banks do not allow you to liquidate the FD using internet banking.
Hence, cross-check the rules before jumping into opening FD.
Personal loans are one of the best types of loans which will come in handy when we need the money urgently. However, it does not mean we go for any types of personal loan. Hence, let us see which bank offers us the Best Personal Loan Interest rate January 2018.
This is our monthly publishing post. Hence, repeating the same information about personal loan features, eligibility, and why one must go for this. This may help the new readers before they jump into the trap called PERSONAL LOAN.
There are two kinds of interest rates like fixed and variable or floating. You can choose which type of interest preferable to you based on your loan amount.
The fixed rate personal loan is where the rate of interest is locked throughout the life of the personal loan, this cannot be changed at any time even if the rate falls or goes up over the coming years.
The variable rate personal loan is opposite to it, where the rate is subject to market volatility. If the interest rate in the market falls, you will have to just pay the reduced rates and vice versa.
The fixed rate is a kind of hedging of market volatility; variable rates are helpful if you are expecting the interest rate in the market will fall.
What affects your personal loan interest rate?
- Income Level: The rate is totally dependent on the income level and the company where you are working. This information is compared with the loan amount and they will gauge if you are capable to repay the loan without defaulting. According to the risk involved in your repayment strategy, the interest rate varies.
- Loan Tenure: Usually shorter the loan in the higher the interest rate will be and vice versa. EMIs are regular and fixed return for lending banks, thus when the return is for long period the rate will decrease respectively.
- Credit Rating of the Individual: Financial institutes conduct CIBIL check to understand the creditworthiness of the borrowers. In case of any default payment records, huge outstanding loan, fraudulent track records, banks has every right to cancel the loan or charge a higher interest rate. Hence, it is very much important to keep the good track record of your credit score and repay your dues timely.
Fees and Charges Applicable to Personal Loan
There are different ways of charging by each bank. However, when you notice about charges, you will find these three common types of charges.
- Processing Fee: This is the non-refundable processing fee; this will be different depending on the loan particulars and bank’s policies.
- Part Payment/ Part Pre-Payment Charges: When you pre-pay loan or part of principal payable by you, automatically banks lose some income because of this. Hence, they charge for this. You have to cross check this charges also.
- Payment Delay Charges: An additional charge is levied by every bank on the outstanding amount that is not repaid within the specific date. It is essential to make sure payment/ EMIs are processed within the deadline to avoid these charges.
Best Personal Loan Interest Rate January 2018
Now let us discuss about the best personal loan interest rate January 2018. I tried my best to provide you the complete picture and comparative table. However, I suggest you to cross check with the bank before proceeding further.
Hope this information is useful for you to take an informed decision while going for a personal loan.
Refer our December month post on the same subject:-
Best Personal Loan Interest Rate December 2017