Many investors view different fixed deposit (FD) plans as reliable investment instruments. The tax benefits of particular FD schemes become desirable for taxpaying individuals who need year-end strategies to save taxes before the financial year 2024-25 deadline. Term deposits serve as FDs for secure financial investments which offer returns for specific duration ranging from seven days to five years.
All types of banking entities like private banks and public banks as well as small finance institutions and cooperative banks provide their customers with FD deposit options. In reality, banks give one-year FD investors between 8% and 9% interest. FD rates provide investors with lower risk when compared to stock investments but deliver stable returns free of significant market fluctuations. People adopt this investment approach by placing a single deposit with a banking institution for an established time duration. One can choose an FD duration between seven days and five years.
About Tax-Saving FDs?
Term deposits or tax-saving fixed deposits enable people to collect interest while enjoying income tax deductions. The income tax deduction benefit that FD investors can claim reaches up to Rs 1.5 lakh each year according to Section 80C of the Income Tax Act of 1961. Most banks offer tax-saving FDs with a mandatory five-year tenure.
Here are the Top 5 Tax-Saving FDs For 2025
- SBI Amrit Vrishti Scheme
Under this scheme, SBI offers an interest rate of up to 7.25% per year to its customers. Apart from this, they give senior citizens 7.75 % on FD for a time frame of 444 days under this scheme. This scheme will be open until March 31, 2025. - RBL Bank
Investors who choose RBL Bank’s tax-saving fixed deposit (FD) scheme can receive 8% annual interest when their deposits reach 500 days. The scheme pays an additional 0.5% interest for senior citizens during this term. Senior citizens who choose this term can take advantage of 8.5% interest for the entire duration. The primary account holder becomes eligible for tax deductions under Section 80C when it comes to joint deposits according to tax regulations. - HDFC Bank
Customers under the private bank can earn up to 7% annual interest through five-year fixed deposit (FD) schemes but senior citizens receive an additional 0.5% rate benefit. The interest rate for senior citizens on fixed deposits has a maximum level of 7.5% when the term matches at five years. - Yes Bank
Yes Bank provides regular customers with a 7.25% interest rate on five-year FD schemes but extends an 8% rate for senior citizens. - DCB Bank
People who open fixed deposit accounts at DCB Bank receive 7.4% interest for five years but senior customers earn an increased rate of 7.9% during this period.
(Disclaimer: This article is for informational purposes only and not an investment advice. Prior to making an investment or taking a loan, conduct thorough research and consult with your financial advisor.)
Also Read: Renewable Energy Hiring To Surge Around 18% In FY25 As Demand For Skilled Professionals Rises
