Why to Invest in Tax Saver FD

  • You can save income tax.
  • You will get guaranteed fixed interest for 5 years.
  • Convenient, some banks also offer online investing facility.
  • Maturity amount is directly credited to your bank account.
  • Safe investment as Rs 1 Lakh is insured under Fixed Deposit.
  • Higher interest rate is offered to senior citizens which is between 0.25% to 1% higher than general tax saving FDs.
  • You can invest small amount of Rs.100 also.
  • Nomination facility is available.
  • You can choose between reinvestment of interest and quarterly/ monthly payout of interest.
  • The interest earned on it can counter inflation as it has the power of compounding.
  • If you are a conservative investor who is risk-averse but want to invest your money for a long-term, a Tax Saver FD is best option for you.

Careful Watch outs

  • Only a resident individual or a HUF is allowed to invest in a Tax Saver Fixed Deposit.
  • For senior citizens, the limit of exemption of interest income is increased from Rs 10,000 to Rs 50,000 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.
  • Tax Saving FDs are available only through the banks. Company Fixed Deposits are not eligible for tax savings under Section 80C of the Income Tax Act.
  • Your investment with Post Office Time Deposit for a period of 5 years also qualifies for deduction under the same section 80C of the Income Tax Act.
  • In case of joint FD accounts, only first account holder is allowed to claim deduction under Section 80C of the Income Tax Act.

Bank Tax Saving Fixed Deposit Scheme

Allahabad BankAllahabad Up Gramin Bank
Andhra BankAndhra Pradesh Grameena Vikas Bank
Andhra Pragathi Grameena BankArunachal Pradesh Rural Bank
Assam Gramin Vikash BankAxis Bank
Bandhan BankBangiya Gramin Vikash Bank
Bank Of BarodaBank Of India
Bank Of MaharashtraBaroda Gujarat Gramin Bank
Baroda Rajasthan Kshetriya Gramin BankBaroda Up Gramin Bank
Bihar Gramin BankCanara Bank
Catholic Syrian BankCentral Bank Of India
Central Madhya Pradesh Gramin BankChaitanya Godavari Grameena Bank
Chhattisgarh Rajya Gramin BankCity Union Bank
Corporation BankDcb Bank
Dena BankDena Gujarat Gramin Bank
Dhanalakshmi BankEllaquai Dehati Bank
Federal BankGramin Bank Of Aryavart
Hdfc BankHimachal Pradesh Gramin Bank
Icici BankIdbi Bank
Idfc BankIndian Bank
Indian Overseas BankIndusind Bank
Jammu And Kashmir BankJammu And Kashmir Grameen Bank
Jharkhand Gramin BankKarnataka Bank
Karnataka Vikas Grameena BankKarur Vysya Bank
Kashi Gomti Samyut Gramin BankKaveri Grameena Bank
Kerala Gramin BankKotak Mahindra Bank
Langpi Dehangi Rural BankLaxmi Vilas Bank
Madhya Bihar Gramin BankMadhyanchal Gramin Bank
Maharashtra Gramin BankMalwa Gramin Bank
Manipur Rural BankMeghalaya Rural Bank
Mizoram Rural BankNagaland Rural Bank
Narmada Jhabua Gramin BankOdisha Gramya Bank
Oriental Bank Of CommercePallavan Grama Bank
Pandyan Grama BankPaschim Banga Gramin Bank
Pragathi Krishna Gramin BankPrathama Bank
Puduvai Bharathiar Grama BankPunjab And Sind Bank
Punjab Gramin BankPunjab National Bank
Purvanchal Gramin BankRajasthan Marudhara Gramin Bank
Saptagiri Grameena BankSarva Haryana Gramin Bank
Sarva Up Gramin BankSaurashtra Gramin Bank
South Indian BankState Bank Of India
Sutlej Kshetriya Gramin BankSyndicate Bank
Tamilnad Mercantile BankTelangana Grameena Bank
The Nainital BankTripura Gramin Bank
Uco BankUnion Bank Of India
United Bank Of IndiaUtkal Grameen Bank
Uttar Banga Kshetriya Gramin BankUttar Bihar Gramin Bank
Uttarakhand Gramin BankVananchal Gramin Bank
Vidharbha Konkan Gramin BankVijaya 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