Prevailing Interest Rates on Tax Savings Deposit in India
An assessee can get tax relief upto Rs.1 lakh under Section 80C of Income Tax Act by investing in various schemes such as LIC, NSC, NHAI etc but one relief which we are talking is Tax Savings Deposit.
Tax Savings Deposit is fixed deposits made with the bank having lock in period of 5 years. This type of tax benefit comes under ETE (Read more about ETE).You can neither withdraw the principal nor the interest in between. In case you break deposits before 5 years the whole amount will be taxable and the year in which you claimed tax benefit will be revised.
Here is a list of prevailing interest rates on tax savings deposit of some Indian banks applicable as at June 9th 2014. If you see any mistakes, want to add any other bank or have anything else to say please leave a comment.
|3||Bank of Baroda||9.05%|
|4||Bank of Maharashtra||9.00%|
|6||Central Bank of India||8.75%|
|10||Indian Overseas Bank||9.00%|
|12||Karur Vysya Bank||8.50%|
|14||Punjab National Bank||8.50%|
|15||South Indian Bank||8.75%|
|16||State Bank of India||9.00%|
|19||Union Bank of India||8.25%|
|21||Bank of India||9.05%|
Most of the above mentioned Banks offer 0.50% additional rate across all maturities on Domestic Term Deposits of Senior Citizens of over 60 years of age.