Private Banks such as Axis Bank, ICICI Bank and HDFC Bank offer 5.75 percent, 5.35 percent and 5.30 percent interest respectively on tax-saving FDs
New Delhi: Interest rate on fixed deposits have been falling consistently. Even smaller private banks have reduced interest rates on tax-saving fixed deposits (FDs) by 25-50 basis points. For instance, DCB Bank and Yes Bank have reduced interest rates on tax-saving FDs to 6.50 per cent from 6.75 per cent earlier. Even IndusInd Bank brought down rates to 6 percent from 6.5 per cent.
Smaller private banks offer interest rates of up to 6.50 per cent on tax-saving FDs. These rates on tax-saving FDs are higher compared to leading public sector banks. DCB Bank, RBL Bank and Yes Bank offer 6.50 percent interest on tax-saving deposits, followed by IndusInd Bank that gives 6 percent.
Small Finance Banks also offer slightly higher FD rates. For instance, Suryoday Small Finance Bank offers 7.25 percent interest on tax-saving FDs. It is followed by Ujjivan Small Finance Bank and AU Small Finance Bank offering 6.75 percent and 6.25 percent interest respectively on these FDs. The interest rates offered by small finance banks are higher compared to leading private banks. Foreign banks such as Deutsche Bank and Citi Bank offer 6.25 percent and 3.50 percent interest respectively on tax-saving FDs.
Private Banks such as Axis Bank, ICICI Bank and HDFC Bank offer 5.75 percent, 5.35 percent and 5.30 percent interest respectively on tax-saving FDs. Public sector banks such as Union Bank of India offers 5.55 percent interest on tax-saving FDs, followed by Canara Bank and State Bank of India (SBI) offering 5.50 percent and 5.40 percent interest on tax savings FDs respectively. Bank of Baroda is offering 5.25 percent interest on tax-saving FDs.
A sum of Rs 1.5 lakh invested in Yes Bank and Union Bank of India tax-saving FDs grows to Rs 2.07 lakh and 1.98 lakh, respectively, after five years.
