Senior citizens are getting the benefit of seven percent interest rate by investing in Fixed Deposit. There is also tax exemption and guaranteed returns.
New Delhi. There is a chance to invest till March 31 to get tax exemption for Finance 2020-21. The option of fixed deposits can also be tried for Secured and Guaranteed Return. Especially Senior Citizens are getting the benefit of seven percent interest rate in this.
Under Section 80C of the Income Tax Act, tax exemption can be taken on investments up to Rs 1.5 lakh in fixed deposits (FD). The 5-year FD of any bank is called Tax Saving FD. All banks provide tax saving FD facility. Senior citizens also get higher interest than others on tax saving FD. Today, we will give you special things related to this and which bank is paying so much interest on it.
Senior citizens are getting the highest interest rate of 7.50 percent in Yes Bank
senior citizens are getting the highest interest rate of 7.50 percent in YES Bank.
Bank interest rate (in%)
Yes Bank 7.50
RRL Bank 7.10
InInd Bank 7.00
Post Office 6.70
ICICI 6.30
HDFC 6.25
SBI 6.20
Interest rate for common people
Bank Interest Rate (in%)
Yes Bank 6.75
Post Office 6.70
RRL Bank 6.60
InInd Bank 6.50
ICICI 5.50
HDFC 5.50
SBI 5.40
Income tax section 80C for tax saving, the special
income tax law section 80C mentions those investment mediums. In which investment tax exemption can be claimed. Many people start investing to save tax before the end of the financial year.
Interest is available on monthly / quarterly basis in tax saving FD.
Only individuals and Hindu undivided families are exempted from investing in tax-saving fixed deposits. These deposits should be made for at least five years. Loans on premature withdrawals and fixed deposits are not available. Interest is available on monthly / quarterly basis which can be reinvested again.
