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Interest Earned on Tax Saving FD

The actual interest earned on Tax Saving FD is much higher than normal FD. You can simply understand this fact with the help of following example of investing Rs 10,000 in a tax saving fixed deposit offering 5% to 6% interest rate per year by three investors having tax slabs of 10%, 20% and 30%.

Taxability of Interest Earned on Tax Saver FD

Interest earned on the tax saver fixed deposits is fully taxable. Total interest earned shall be taxed as per the tax slabs of the investors between 5% and 30%. Banks deduct TDS at 10% when the interest earned is above Rs 40,000, prior to Budget 2019, the limit of TDS on interest income was Rs. 10,000. When the depositor does not provide the PAN details, TDS is deducted by the bank at 20% rate.

For senior citizens, the limit of exemption of interest income is increased from Rs 10,000 to Rs 50,000 in the Budget 2019 on deposits with banks and post offices. No TDS will be deducted for senior citizens, unless it crosses the new limit of Rs 50,000 in a financial year under section 80TTB of the Income Tax Act.

This interest income should be shown under the head "Income from Other Sources" while filing your Income Tax Returns.

Bank Tax Saving Fixed Deposit Scheme

Allahabad Bank	Allahabad Up Gramin Bank
Andhra Bank	Andhra Pradesh Grameena Vikas Bank
Andhra Pragathi Grameena Bank	Arunachal Pradesh Rural Bank
Assam Gramin Vikash Bank	Axis Bank
Bandhan Bank	Bangiya Gramin Vikash Bank
Bank Of Baroda	Bank Of India
Bank Of Maharashtra	Baroda Gujarat Gramin Bank
Baroda Rajasthan Kshetriya Gramin Bank	Baroda Up Gramin Bank
Bihar Gramin Bank	Canara Bank
Catholic Syrian Bank	Central Bank Of India
Central Madhya Pradesh Gramin Bank	Chaitanya Godavari Grameena Bank
Chhattisgarh Rajya Gramin Bank	City Union Bank
Corporation Bank	Dcb Bank
Dena Bank	Dena Gujarat Gramin Bank
Dhanalakshmi Bank	Ellaquai Dehati Bank
Federal Bank	Gramin Bank Of Aryavart
Hdfc Bank	Himachal Pradesh Gramin Bank
Icici Bank	Idbi Bank
Idfc First Bank	Indian Bank
Indian Overseas Bank	Indusind Bank
Jammu And Kashmir Bank	Jammu And Kashmir Grameen Bank
Jharkhand Gramin Bank	Karnataka Bank
Karnataka Vikas Grameena Bank	Karur Vysya Bank
Kashi Gomti Samyut Gramin Bank	Kaveri Grameena Bank
Kerala Gramin Bank	Kotak Mahindra Bank
Langpi Dehangi Rural Bank	Laxmi Vilas Bank
Madhya Bihar Gramin Bank	Madhyanchal Gramin Bank
Maharashtra Gramin Bank	Malwa Gramin Bank
Manipur Rural Bank	Meghalaya Rural Bank
Mizoram Rural Bank	Nagaland Rural Bank
Narmada Jhabua Gramin Bank	Odisha Gramya Bank
Oriental Bank Of Commerce	Pallavan Grama Bank
Pandyan Grama Bank	Paschim Banga Gramin Bank
Pragathi Krishna Gramin Bank	Prathama Bank
Puduvai Bharathiar Grama Bank	Punjab And Sind Bank
Punjab Gramin Bank	Punjab National Bank
Purvanchal Gramin Bank	Rajasthan Marudhara Gramin Bank
Saptagiri Grameena Bank	Sarva Haryana Gramin Bank
Sarva Up Gramin Bank	Saurashtra Gramin Bank
South Indian Bank	State Bank Of India
Sutlej Kshetriya Gramin Bank	Syndicate Bank
Tamilnad Mercantile Bank	Telangana Grameena Bank
The Nainital Bank	Tripura Gramin Bank
Uco Bank	Union Bank Of India
United Bank Of India	Utkal Grameen Bank
Uttar Banga Kshetriya Gramin Bank	Uttar Bihar Gramin Bank
Uttarakhand Gramin Bank	Vananchal Gramin Bank
Vidharbha Konkan Gramin Bank	Vijaya Bank
Yes Bank

Disclaimer: The Saving Fixed Deposit Interest Rates keep on changing. You are advised to check the interest rates with banks before making your FD. Source: Bank Websites

Bank Name	Interest(P.A.)
Dcb Bank Limited	7.25%
Canara Bank	7.00%
Syndicate Bank	7.00%
City Union Bank Limited	6.90%
Indusind Bank	6.75%
Yes Bank	6.75%
Andhra Bank	6.70%
Corporation Bank	6.70%
Union Bank Of India	6.70%
Idfc First Bank	6.50%
Icici Bank Limited	6.35%
Hdfc Bank	6.25%
Laxmi Vilas Bank	6.25%
Kotak Mahindra Bank Limited	6.20%
Idbi Bank	6.10%
Oriental Bank Of Commerce	6.10%
Punjab National Bank	6.10%
United Bank Of India	6.10%
State Bank Of India	6.10%
State Bank Of Mysore	6.10%

Bank Name	Interest(P.A.)
Dcb Bank Limited	7.75%
Canara Bank	7.50%
Syndicate Bank	7.50%
City Union Bank Limited	7.25%
Indusind Bank	7.50%
Yes Bank	7.50%
Andhra Bank	7.20%
Corporation Bank	7.20%
Union Bank Of India	7.20%
Idfc First Bank	7.00%
Icici Bank Limited	6.85%
Hdfc Bank	6.75%
Laxmi Vilas Bank	6.75%
Kotak Mahindra Bank Limited	6.70%
Idbi Bank	6.85%
Oriental Bank Of Commerce	6.60%
Punjab National Bank	6.60%
United Bank Of India	6.60%
State Bank Of India	6.90%
State Bank Of Mysore	6.90%

Interest Earned on Tax Saving FD

Taxability of Interest Earned on Tax Saver FD

Bank Tax Saving Fixed Deposit Scheme

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Highest FD Rates

Senior Citizen FD Rates