4 best tax-saving fixed deposits to invest in 2021



5-year tax-saving fixed deposits from small corporate finance banks

Under the current low bank interest rate regime, smaller financial banks promise better interest rates than major private and public sector banks on short and long term deposits. By investing in a small finance bank term deposit system, one would not only get good returns, tax benefits, but his deposits would also benefit from insurance coverage up to Rs 5 lakhs by DICGC. Here are the top 5 small finance banks that currently promise the best interest rates on 5 year term deposits or tax saving deposits under Rs 2 Cr.

Banks Regular FD rates FD senior rates
Small Ujjivan Financial Bank 6.75% 7.25%
Jana Small Finance Bank 6.50% 7.00%
Small Equitas Corporate Bank 6.25% 6.75%
Suryoday Small Finance Bank 6.25% 6.50%
Utkarsh Small Financial Bank 6.00% 6.50%
Source: Bank websites
5-year tax-saving fixed deposits from private sector banks

5-year tax-saving fixed deposits from private sector banks

Here are the top 5 private sector banks promising better interest rates on fixed deposits saving less than Rs 2 Cr.

Banks Regular FD rates FD senior rates
RBL Bank 6.50% 7.00%
DCB Bank 6.50% 7.00%
Yes Bank 6.25% 7.00%
IndusInd Bank 6.00% 6.50%
Karur Vysia Bank 6.00% 6.00%
Source: Bank websites
5-year tax-saving fixed deposits from public sector banks

5-year tax-saving fixed deposits from public sector banks

For a deposit amount of less than Rs 2 Cr, here are the top 5 commercial banks promising good yields on term deposits saving tax.

Banks Regular FD rates FD senior rates
Union Bank 5.50% 6.00%
Canara Bank 5.50% 6.00%
National Bank of India 5.30% 5.80%
Bank of Punjab and Sindh 5.30% 5.80%
Bank of India 5.15% 5.65%
Source: Bank websites
Term deposit at the post office

Term deposit at the post office

After term deposits from banks, small savings plans are the safest investment in the debt category. Of all the small savings, the post office term account works just like a bank term deposit where you can invest for a period of 1 to 5 years. You can open a term account at any post office by making an initial deposit of Rs 1000 / – and in multiples of 100 with no upper limit. Section 80C of the Income Tax Act 1961 refers to investments made under a 5-year TD.

The deposit amount as well as the interest rate accrued on this term account are payable after 1 year, 2 years, 3 years and 5 years from the date of opening of the account. The government recently announced that interest rates on small savings accounts would remain unchanged for the quarter ending September 30, 2021. According to the circular, post office term accounts would continue to pay interest of $ 5. 5% on deposits of one to three years, and 6.7% on deposits of five years.



Source link

Previous Battle brews for Martin Shkreli's controlling stake in Phoenixus
Next Archaeologists uncover fascinating treasure of over 300 rare Iron Age small pieces at HS2 site in west London