Senior Citizens are eligible to get the Highest Tax-Saving opportunities through Tax Saver FD. They can earn Interest up to 7.75% from various leading public and private sector banks to save tax under the Income Tax Act section 80C.
Investment schemes are available to save tax. You can choose from mutual funds, central government schemes, and tax-saving fixed deposits in banks. Senior citizens are entitled to higher interest rates compared to regular citizens. Let’s have a look at the interest rates for tax saving fixed deposits offered by banks.
It’s important to note that investments should be made by March 31st of the current financial year to get the benefits of tax reduction. You can opt for schemes like PPF, Sukanya Samriddhi Yojana, National Pension System, Senior Citizen Savings Scheme, and some mutual funds that offer tax deductions. ELSS funds are also available. Under Section 80C of the Income Tax Act, you can get a tax deduction of up to Rs. 1.50 lakhs annually.
Another option to save taxes is through fixed deposits in banks, but this is applicable only on deposits with a tenure of five years. These are called tax saving FDs, and the interest rates vary depending on the banks. Senior citizens can get a higher interest rate of 7.7%, while the general public can get 7.25%. Here is a full list of banks and their interest rates.
Remember, making investments before the deadline is essential to avail of tax benefits.
Top private sector bank IndusInd Bank is currently offering 7.75% interest to senior citizens on a five-year tenure tax saving deposit, whereas general citizens are getting 7.25% interest. Similarly, Axis Bank offers 7% interest to the general public and 7.75% interest to senior citizens.
In HDFC Bank, the interest rate on a five-year tenure deposit for the general public is 7%, while senior citizens receive 7.50% interest. The same is the case with ICICI Bank, while in Kotak Mahindra Bank, the interest rates for general citizens and senior citizens are 6.2% and 6.7%, respectively.
The leading public sector bank of SBI offers 6.50% interest on tax saving deposits for regular citizens and 7.5% for senior citizens. The Bank of Baroda offers 6.50% and 7.15%, and Punjab National Bank offers 6.5% and 7%. The Central Bank of India offers 6.25% interest on tax-saving FDs and 6.75% interest for senior citizens, while the Union Bank of India offers 6.5% and 7%.
