3 Private banks are providing senior citizens 6.8% to 7.10% rates on their savings FDs

Investing in tax-saving fixed deposits is one of the most popular options among tax savers when it comes to saving tax while still generating decent profits (FDs). Tax-saving fixed deposits have a 5-year lock-in term and enable tax deductions under section 80C up to 1.5 lakh per year in the case of a single account. TDS is deducted when interest collected or reinvested on tax-saving FDs exceeds Rs.40,000/- for ordinary customers and Rs.50,000/- for senior citizens in a fiscal year. Because interest rates in the economy are rising after the central bank hiked the repo rate to 4.90 percent, investing in tax-saving fixed deposits could be a suitable alternative for people who want to make a 5-year deposit without making premature withdrawals while also saving tax. As a result of our research, the three private banks listed below are offering up to 7.10 percent rates on tax-saving fixed deposits to the elderly.

DCB Bank

Investors can make a minimum deposit of Rs.1000 and a maximum investment of Rs.150,000 with DCB Bank’s tax-saving fixed deposit option. Money can be deposited in the DCB Bank Tax-Saver FD for a period of 5 years or more, and no premature withdrawals are authorised, according to the requirements. Seniors will earn a 7.10% interest rate on tax-saving fixed deposits starting May 21, 2022, while regular consumers will receive a 6.60% interest rate. On tax-saving fixed deposits, DCB Bank does not allow auto-renewal, and no loan can be taken out against the account.

YES Bank

The minimum deposit requirement for a Yes Bank tax-saving fixed deposit is $1,000, with a maximum deposit limit of $150,000 each fiscal year. There is a 5-year lock-in term on this tax-saving deposit programme, as well as a nomination option. Yes Bank offers tax-advantaged fixed deposit accounts that can be created online, over the phone, or in person at a branch. Older citizens get a 7.00 percent return on tax-saving fixed deposits from Yes Bank, while normal clients get a 6.25 percent return as on June 6, 2022. Monthly or quarterly interest payments are available, and the account balance can be re-invested at maturity.

RBL Bank

RBL Bank tax saving fixed deposit accounts can be opened in multiples of Rs. 100 for balances ranging from Rs. 100 to Rs. 1,50,000. The RBL Bank Tax Savings Fixed Deposit has a 60-month lock-in period and can be nominated. The RBL Bank tax saving deposit programme does not allow partial or premature withdrawal, and the tax benefit under 80C is only available to the primary holder in the case of joint deposits. RBL Bank now provides a 6.80% return on its tax-saving FD scheme to senior citizens and a 6.30% return to normal customers. These interest rates will take effect on June 8, 2022.