Income Tax Return filing: SBI vs HDFC vs ICICI vs PNB Tax Saving Fixed Deposit rates compared

Income Tax Return (ITR) filing: The last date of the Income Tax Return (ITR) filing ends on August 31. One of the best ways to save tax is to invest in tax-saving Fixed Deposit (FD) plans offered by banks. This deposit allows a taxpayer to grow wealth securely and also enjoy tax benefits up to Rs 1.5 lakhs per annum under section 80C. The tax saving fixed deposits, however, come with some restrictions like no permission for premature withdrawal or loan against FD.

Here we take a look at the tax saving FD schemes offered by some of the major banks like SBI, HDFC, ICICI and PNB:

State bank of India tax-saving fixed deposit 

Eligibility: The SBI says only "resident Indians for himself/ herself as an individual or in the capacity of the Karta of the Hindu undivided family, having Income tax Permanent Account Number (PAN)."

The minimum deposit is Rs 1000 and maximum deposit should not exceed Rs 1,50,000 in a year. 

Tenure: The minimum tenure for FD under the tax saving scheme is 5 years and a maximum is 10 years.

Rate of Interest: For a term deposit of 5-10 years, SBI is currently offering 6.8 per cent interest. For senior citizens, it is 7.35 per cent for the same period. 

HDFC tax-saving fixed deposit 

Eligibility: Resident individuals and Hindu Undivided Families can apply. 

The minimum deposits one can make is Rs 100 and in multiples of Rs 100, not exceeding Rs 1.5 lakh in a financial year. 

Interest rate: Currently, HDFC offers 7.1 per cent interest for a five-year term deposit. For senior citizens, the rate is 7.6 per cent. 

You can also open a joint tax saving fixed deposit account along with a non senior citizen. 

ICICI Bank tax saving fixed deposit

The ICICI Bank allows a minimum investment of Rs 10,000 and a maximum Rs 1.5 lakh for a duration of five years. A customer can also nominate a single nominee to his/her account proceeds, whether the account is held jointly or individually.

Interest rate:

The ICICI Bank is currently offering 7.5% interest for FD upto five years. The rate is the same for senior citizens as well. 

Punjab National Bank (PNB) tax saving  fixed  deposit

Eligibility: Individuals (including illiterate, blind persons), singly or jointly, and HUF

Minimum deposit one needs to make is Rs 100/- or in multiples thereof, not exceeding Rs. 1.50 lakh in a financial year

Tenure: The minimum deposit period is 5 years and the maximum is 10 years. There is also a lock in period of five years. One can make premature withdrawals after the completion of 5 years of deposit. PNB says, "in case of death of the depositor before the maturity of term deposit, levy of penalty would be exempted and nominee/legal heir will be allowed premature payment even before the lock-in-period as per rules." The account also comes with a nomication  facility. 

Interest rate: For a term deposit of up to five years, PNB is currently offering 6.25 per cent interest, while for senior citizens it is 6.75 per cent.