Tax-Saving 5-Year FDs: What SBI and other PSU banks are offering in 5-year fixed deposit schemes now
Tax-Saving Fixed Deposits: Fixed Deposits (FDs) are one of the popular investment choices for many investors due to their safety and assured returns. However, not everyone is aware that, despite offering a guaranteed interest rate and being a risk-free investment, deposits made in 5-year FDs are eligible for tax deductions of up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act.
Current FD Rates Offered By Banks For 5-Year Tenure
If you’re considering investing in a 5-year FD, several banks offer competitive interest rates. Leading options include State Bank of India (SBI), Bank of Baroda (BOB), Punjab National Bank (PNB), Canara Bank, and more. These banks offer varying interest rates, with different rates for regular investors and senior citizens.
SBI (General Citizens)
State Bank of India (SBI) offers an attractive interest rate of 6.50 per cent for general citizens on tax-saving FD.
SBI (Senior Citizens)
In State Bank of India, senior citizens can benefit from a higher rate of 7.50 per cent.
PNB (General Citizens)
At Punjab National Bank (PNB), general citizens earn 6.50 per cent interest on 5-year tax-saving FD.
PNB (Senior Citizens)
Punjab National Bank (PNB) offers an attractive interest rate of 7.00 per cent for senior citizens on tax-saving FD.
Canara Bank (General Citizens)
In Canara Bank, general citizens can earn 6.70 per cent interest on FD of 5-year tenure.
Canara Bank (Senior Citizens)
Senior citizens receive 7.20 per cent on FD of 5-year tenure.
Indian Overseas Bank (General Citizens)
At Indian Overseas Bank, general citizens earn 6.50 per cent interest on 5-year tax-saving FD.
Indian Overseas Bank (Senior Citizens)
Senior citizens receive 7.00 per cent on FD of 5-year tenure.
BOB (General Citizens)
Bank of Baroda (BOB) offers 6.50 per cent interest for general citizens.
BOB (Senior Citizens)
Bank of Baroda (BOB) offers 7.15 per cent for senior citizens on FD of 5-year tenure.
Post Office
The Post Office scheme currently offers a robust interest rate of 7.50 per cent for a 5-year FD, making it an attractive option for conservative investors.