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Smart investment for senior citizens! Latest interest rates on tax-saving FDs: Get up to 7.9% from these banks india business news

senior citizen tax-saving FD: Experts say that as you age, it is best to choose safe investments. That’s why many senior citizens Like investing your money in stablecoins bank fixed deposit (FD). Also, you get the benefit of investing in a five-year tax-saving bank FD tax allowances,
However, it is important to pay attention only to those who stick to the old tax system Can get it tax cut Tax-saving on FD. This benefit is not available under the new tax regime.
tax saving fixed deposit
According to ET, a tax-saving fixed deposit (FD) account enables you to earn interest while reducing taxes. You can avail tax deduction of up to Rs 1.5 lakh annually under Section 80C income tax act, 1961. The funds you invest in this FD are locked for five years, and withdrawals are not allowed during this period. This is a beneficial option for individuals aiming to reduce tax liabilities and secure a fixed return on their investments. However, it is important to note that the interest earned is subject to taxation, and the interest rate varies between banks.
Read this also Fixed Deposit Interest Rates for Senior Citizens: Avail interest rates up to 8.1% on 3-year bank fixed deposits; See full list here
Rate of interest Senior citizens tax-saving on FD
Banks offer higher interest rates on FD for senior citizens. Many banks offer additional interest rates of up to 0.50% per annum for senior citizen investors. Let’s take a look at the interest rates offered by private and public sector banks on five-year tax-saving FDs.
Tax-saving FD interest rates of private banks

Name of bank
Tax-saving FD interest rates
axis Bank 7.75
DCB Bank 7.90
Federal Bank 6.60
HDFC bank 7.75
ICICI Bank 7.50
IDFC First Bank 7.50
IndusInd Bank 7.75
Kotak Mahindra Bank 6.70
RBL Bank 7.60

Public Sector Bank Tax Saving FD Interest Rates

Name of bank tax saving FD interest rate
Bank of Baroda 7.15
Canara Bank 7.20
Indian Bank 6.60
Indian Overseas Bank 7.00
Punjab National Bank 7.00
state Bank of India 7.50

Tax implications on interest earned
Income tax is levied on the interest earned from tax-saving FDs, TDS is applicable on this income. However, senior citizens can avoid or reduce TDS by submitting Form 15H in the bank. Additionally, under Section 80TTB of the Income Tax Act, senior citizens can deduct up to Rs 50,000 from the interest paid on tax-saving FDs.
How to submit Form 15H in SBI for tax saving
Here’s how you can submit Form 15H in SBI to save tax:

  1. visit And log in to your account.
  2. Select the option to submit Form 15G/H under “e-Services”.
  3. If your age is less than 60 years then choose Form 15H.
  4. Select your CIF number and click on submit.
  5. Select the branch code where you have to submit the form and click on submit.
  6. Fill your details like name, PAN, address etc. and click on submit. After reviewing the details, click ‘Confirm’.
  7. You will receive a one-time password (OTP) on your registered mobile number. Enter OTP and click on Confirm.

On successful submission, a unique identification number (UIN) will be generated. You can download a copy of the filled form from the link displayed on the screen.

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