FD: invest Rs 5 lakh for 5 years, tax will be saved and there will be strong profit

✦5 Lakh for 5Years!

✦Tax benefits 

✦Strong return ✦ Safe return 

Invest Rs 5 lakh for 5 years, the tax will be saved and there will be a strong profit.

Investors in India consider Fixed Deposit (FD) to be the best scheme for saving. Even today FD is one of the most popular schemes in terms of savings. Even for the purpose of saving tax under Section 80C of Income Tax Act 1961, investors opt for FDs except for options like PPF, ELSS, ULIP, and NPS (National Pension Scheme).

invest Rs 5 lakh for 5 years, tax will be saved and there will be strong profit

In a tax-saving FD, you can save up to Rs 1,50,000 in a financial year. Here we will tell you the features of tax-saving FD. Also we will know the best interest rate FD.

Who can open tax saving FD Tax savings FD

has a lock-in period of five years, before which you cannot withdraw your money. Only Indian resident individuals and Hindu Undivided Family (HUF) can invest in these deposits.

Tax benifit

Joint Account Opening Facility

You can also open tax-saving FDs alone or with someone. In the case of a joint account, only the first holder can claim tax benefit under Section 80C. You can opt for monthly/quarterly/annual interest payments on these FDs. You can also choose the compounding option, in which the interest earned will be reinvested.

Tax on interest will be taxed on interest earned on tax-saving FD.

The interest amount gets added to your annual income and is taxed as per the income tax slab. Banks deduct 10% TDS on the annual interest earned on these FDs. If you are exempt from paying tax, then you have to submit Form 15G / H at the beginning of the financial year in the bank.

In which banks these accounts can be opened, 

tax-saving FD account can be opened in any government or private bank except co-operative banks and rural banks. 5-year term deposits of the post office also get the benefit of tax deduction under Section 80C. You can neither withdraw money from FD before time nor take a loan on this FD. The interest rates on these deposits vary from bank to bank. Let us know where you can get the most interest.

Here, 5 years of tax-saving FD will get the most interest

  1. 6.75% in DCB Bank, 
  2. 6.75% in Yes Bank, 
  3. 6.50% in IndusInd Bank, 
  4. 6.25% in RBL Bank, 
  5. 6.50% in AU Small Finance Bank, 
  6. 6.00% in Deutsche Bank, 
  7. 5.65% in Karur Vysya Bank and 
  8. 5.65% in Ujjivan Small Finance Bank 
  9. 5.55% interest will be available. 

If you invest 5 lakh rupees in the FD of these banks for 5 years, then you will get a good profit.

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