Tax Saving Fixed Deposit is one such financial option that allows you to make tax saving investments under Section 80C of the Income Tax Act.
Senior Citizens Tax-Saving FD: Senior citizens generally prefer to invest in such a place, where their money is completely safe and it is not affected much by market volatility. In Fixed Deposit, investors get guaranteed returns with low risk, hence it is very much preferred. One, the risk involved is low and at the same time it has the flexibility to choose different tenures. This is the reason why this method of investment is very popular among senior citizens too.
can save tax
Tax Saving Fixed Deposit is one such financial option that allows you to make tax saving investments under Section 80C of the Income Tax Act. The minimum tenure for a fixed deposit under the tax saving scheme is five years. Higher interest rates are offered to senior citizens. It also helps them in saving tax. Section 80C of the Income Tax Act allows senior citizens to claim tax deduction of up to Rs 1.5 lakh for investing their money in tax saving FDs.
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so this option is better
If a senior citizen wants to save money then a tax saving fixed deposit can be a good option. It is to be noted that premature withdrawal is not allowed in tax-saving FDs as the tenure of this scheme is between 5 to 10 years. You can choose the tenure as per your financial goals. Generally, it is advisable to open an FD account in the same bank where you have your savings account. However, you can also choose any other financial institution where you are getting attractive interest rates. On maturity of your tax saving FD, the amount gets transferred to your savings account.
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Getting better returns in these banks
You can compare the interest rates of different financial institutions before opening a tax saving account. You also need to see how much money you need to reach your financial goals. It is easy to calculate the total amount you will get on maturity. Here we have listed more than 30 financial institutions and their interest rates on tax saving FDs. With its help, you can compare interest rates. Along with this, one can also see how the FD of Rs 1.5 lakh will grow after five years with different interest rates.
Note: The data given here is taken from the website of respective banks as on 31st May 2022. All listed (BSE) public and private banks have been included for data compilation. Banks whose data is not available on their website have not been included here. This list includes only tax saving FDs for senior citizens (except super senior citizens) with a tenure of 5 years.