SBI vs BoB vs Canara Bank Tax Saver FD: What will you get in maturity on Rs 4 lakh, Rs 8 lakh, and Rs 12 lakh investments in each FD? Know here
SBI vs Canara Bank vs BoB 5-year FDs: A 5-year fixed deposit (FD) scheme provides fixed return. Investment in the 5-year FD also provides tax benefits under Section 80C of the Income Tax Act, 1961. State Bank of India (SBI), Bank of Baroda (BoB), and Canara Bank offer a 5-year FD each.
SBI vs Canara Bank vs BoB 5-year FDs: Fixed deposit schemes provide guaranteed return where one can invest one time and get the amount on maturity. Investors with a low-risk appetite, or those who want a fixed amount at a particular time to achieve their financial goals, invest in FDs. Senior citizens who want a fixed income every month also invest in FDs.
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Who can invest in FDs?
Anyone, a general or senior citizen, can invest in FDs. Banks offer higher interest rates in FDs to senior citizens compared to what they offer to general citizens.
FD tenures
The tenure of an FD can be from 7 days to 10 years. Apart from that, banks also offer special FDs, which are for limited durations and offer higher interest rates than traditional FDs of the same bank.
FD withdrawal options
The basic rule is an investor can withdraw the amount (interest+principal) on the maturity of the scheme. But they can also opt for monthly, quarterly, half-yearly, or yearly withdrawals. Senior citizen facilities often opt for it.
5-year FD tax benefits
A 5-year FD is also known as a tax saver FD. Investments up to Rs 1.50 lakh in a financial year in the 5-year FD provide tax benefits under Section 80C of the Income Tax Act, 1961. Like many other banks, State Bank of India (SBI), Canara Bank, and Bank of Baroda (BoB) also offer a 5-year FD each.
Interest rate of SBI 5-year FD (for general and senior citizens)
The bank is offering 6.50 per cent interest rate to general citizens.
The interest rate for senior citizens is 7.50 per cent.
Interest rate of Canara Bank 5-year FD (for general and senior citizens)
General citizens get 6.70 per cent interest rate in the bank's 5-year FD.
In the 5-year FD, senior citizens get 7.20 per cent interest rate.
Interest rate of BoB 5-year FD (for general and senior citizens)
The interest rate in its 5-year FD for general citizens is 6.80 per cent.
Senior citizens get 7.40 per cent interest rate in the 5-year FD.
Maturity amount on Rs 4 lakh, Rs 8 lakh, & Rs 12 lakh in SBI 5-year FD
The estimated maturity amounts for general citizens will be Rs 5,52,168, Rs 11,04,336, and Rs 16,56,504, respectively.
Maturity amount on Rs 4 lakh, Rs 8 lakh, & Rs 12 lakh in SBI 5-year FD
Senior citizens will estimated Rs 5,79,979, Rs 11,59,958, and Rs 17,39,938 as maturity amounts.
Maturity amount on Rs 4 lakh, Rs 8 lakh, & Rs 12 lakh in Canara Bank 5-year FD
General citizens will get estimated Rs 5,57,627, Rs 11,15,254, and Rs 16,72,880 as maturity amounts.
Maturity amount on Rs 4 lakh, Rs 8 lakh, & Rs 12 lakh in Canara Bank 5-year FD
For senior citizens, respective maturity amounts will be Rs 5,71,499, Rs 11,42,998, and Rs 17,14,497.
Maturity amount on Rs 4 lakh, Rs 8 lakh, & Rs 12 lakh BoB SBI 5-year FD
Respective maturity amounts for general citizens will be Rs 5,60,375, Rs 11,20,751, and Rs 16,81,126.
Maturity amount on Rs 4 lakh, Rs 8 lakh, & Rs 12 lakh BoB SBI 5-year FD
Senior citizens will get estimated Rs 5,77,139, Rs 11,54,279, and Rs 17,31,418 as maturity amounts.