Banks offer higher interest rates on fixed deposits (FDs) for senior citizens and the rates vary depending on the bank. These banks are offering the best interest rates on Senior Citizen Tax Saving FDs.
| Name of bank | tax saving | Qly Compound Return |
| indusind bank | 7.50 | 14499.48 |
| DCB Bank | 7.10 | 14217.47 |
| RBL Bank | 7.05 | 14182.58 |
| IDFC First Bank | 7.00 | 14147.78 |
| HDFC bank | 6.60 | 13872.27 |
tax benefits
Exemption from investment deduction under Section 80C is a major advantage of tax saving fixed deposits. Investors can invest up to Rs. 1.5 lakh for a fixed period of 5 years to avail tax benefits.
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The newly added Section 80TTB of the Income Tax Act states that interest payments made on deposits up to Rs 50,000 in banks, co-operative banks or post offices are effectively tax-free.
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Also, no TDS will be deducted from interest payments received up to Rs 50,000 in a financial year. A senior citizen can avoid TDS deduction by submitting Form-15H to the bank.
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