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Quick glance at interest rates offered on tax-saver fixed deposits by various banks

Tax-saver FDs: Though they do not guarantee high rate of returns like ELSS, they are still preferred since they are risk free.

Interest rates on fixed deposits may have come down, but they still remain the most favoured tax saving tools. This is because of the zero risk they have unlike Equity Linked Savings Scheme (ELSS), which is a diversified equity mutual fund. They are also preferred since they do not have a long lock-in period (about 15 years) of Public Provident Fund (PPF).

Besides, while you claim a deduction of up to Rs.1, 50, 000 with a tax saver FD under Section 80C, with an ELSS one can only avail a deduction of up to Rs.45, 000.

A tax saver FD is for a minimum of five years. One can hold it for a maximum of 10 years. Premature withdrawals are not allowed and neither are loans granted against them. The interest earned on these deposits is however taxed at the source if the interest income on a fixed deposit per annum exceeds Rs.10000. Senior citizens get a slightly higher interest rate.

Private banks

IDFC

Minimum deposit: Rs.10, 000

Maximum deposit: Rs.1, 50, 000

Interest rate: 7.2 percent for regular citizens. For senior citizens 7.70 percent.

Yes Bank

Interest rate: 7 percent for regular citizens. 7.5 percent for senior citizens.

Axis Bank

It has two types of tax saver fixed deposits on offer. One provides quarterly compounding and reinvestment of interest. The other offers quarterly interest.

Minimum investment: Rs.100

Maximum investment: Rs.1, 50, 000

Interest rate: 6.9 percent for regular citizens. 7.4 percent for senior citizens.

ICICI Bank

It has two types of fixed deposit plans for tax saving. One is called the “traditional plan.” It pays interest either quarterly or monthly. The “reinvestment plan” offers interest that is compounded every quarter and reinvested along with the principal sum.

Minimum investment: Rs.10, 000

Maximum investment: is Rs.1, 50, 000.

Interest rates: For regular citizens 6.5 percent. For senior citizens it is 7 percent.

Kotak Mahindra Bank

Minimum deposit: Rs.100

Maximum deposit: Rs.1, 50, 000

Interest rate: 6.25 percent for regular citizens. 6.75 percent for senior citizen.

HDFC Bank

Minimum deposit: Rs.100

Maximum deposit: Rs.1, 50, 000.

Interest rate: For regular citizens the rate is 6 percent. For senior citizens it is 6.5 percent.

RBL Bank

Minimum deposit: Rs.100

Maximum deposit: Rs.1, 50, 000

Interest rate: 7.10 percent

IndusInd Bank

Interest rate: For regular citizens it is 6.5 percent. For senior citizens it is 7 percent.

Foreign Banks

Deutsche Bank

Minimum deposit: Rs.20, 000

Maximum deposit: Rs.1, 50, 000

Interest rate: For regular citizens it is 7.5 percent. For senior citizens it is 8 percent.

City Bank

Minimum deposit: Rs.1000

Maximum deposit: Rs.1, 50, 000

Interest rate: For regular citizens it is 5.25 percent. For senior citizens it is 5.75 percent.

Public banks:

State Bank of India (SBI)

Minimum investment: Rs.1000

Maximum investment: Rs. 1, 50, 000

Interest rates: 6.5 percent for regular citizens. 7 percent for senior citizens.

Andhra Bank

Interest rate: 6.25 percent for regular citizens. 6.75 percent for senior citizens.

Allahabad Bank

Interest rate: 6.50 percent for both regular and senior citizens

Bank of Baroda

Minimum deposit: Rs.100

Maximum deposit: Rs.1, 50, 000

Interest rate: For regular citizens it is 6.25 percent. For senior citizens it is 6.5 percent.

Bank of India

Interest rate: It is 6.25 percent for regular citizens and 6.75 percent for senior citizens.

Bank of Maharashtra

Minimum deposit: Rs.1000

Maximum deposit: Rs.1, 50, 000

Interest rate: For regular citizens it is 6 percent. For senior citizens it is 6.5 percent.

Canara Bank

Minimum deposit: Rs.100

Maximum deposit: Rs.1, 50, 000

Interest rate: For regular citizens 6 percent. For senior citizens it is 6.5 percent.

Central Bank of India

Interest rate: For regular citizens it is 6.5 percent. For senior citizens it is 7 percent.

Corporation Bank

Interest rate: For regular citizens it is 6.5 percent. For senior citizens it is 7 percent.

Dena Bank

Minimum amount: Rs.100

Maximum amount: Rs.1, 50, 000

Interest rate: For regular citizens 6.3 percent. For senior citizens 6.8 percent.

Vijaya Bank

Minimum deposit: Rs.100

Maximum deposit: Rs.1, 50, 000

Interest rate: For regular citizens it is 6.5 percent. For senior citizens it is 7 percent.

Oriental Bank of Commerce

Maximum deposit: Rs.1 lakh

Interest rate: For regular citizens it is 6.4 percent. For senior citizens 6.9 percent.

Syndicate Bank

Interest rate: For regular citizens it is 6.5 percent. For senior citizens it is 7 percent.