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“.