Did you know you can save taxes with FDs too? There are some options in the market for investors who are looking for various tax-saving strategies that also provide them ensured return. Investors can save tax by investing in FDs under Section 80C of the Income Tax Act.
Under this act, the minimum locking period is of 5 years and you get exempted from tax worth Rs 1.5 lakh. This investment gives you dual benefits of saving taxes as well as giving guaranteed returns with no risk. Hence, a lot of people choose this investment option.
Check out the list of tax-saving FD interest rates:
- IndusInd Bank – 6.5%
- RBL Bank – 6.3%
- IDFC First Bank – 6.25%
- DCB Bank – 5.95%
- Karur Vysya Bank – 5.9%
Usually, HUFs (Hindu Undivided Families) and Individuals are the only entities that come under the tax-saving FDs under the act. You can start a tax-saving FD account with a bank where you have your savings account or another bank account if they allow you to open an FD without a savings account.
So, if you were wondering how you are going to save your taxes as the list is very long which includes property tax (that has increased enormously after the subsidy is removed in some areas), these FDs will save you some money and even give good returns.
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