However, if you are below 60 years of age, you can also consider a special post office scheme for higher interest. This scheme is National Savings Certificates (National Savings Certificates or NSC), in this scheme you are getting much more interest than Fixed Deposits.

7.7% interest is being received on National Savings Certificate

The government has increased the interest of National Savings Certificate by 70 basis points (0.70 per cent) for the April-June quarter of the year 2023. In the previous quarter, there was 7% interest on National Savings Certificates (National Savings Certificates or NSC). After the recent hike, the interest rate on National Savings Certificate has increased to 7.7%. Apart from this, 7.5% interest is being given in the post office term deposit of 5 years.

Banks giving 7% interest on tax saving FD

Most popular banks like HDFC Bank, ICICI Bank, Yes Bank, Axis Bank and IDFC First Bank are offering 7% interest on tax-saving fixed deposits. DCB Bank is paying the highest interest of 7.6% on 5-year fixed deposits. At the same time, IndusInd Bank is also offering an interest rate of 7.25% on fixed deposits of the same tenure. According to an ET report, Bank of Baroda is paying 6.5% interest on 5-year fixed deposits, Canara Bank 6.7%, Punjab National Bank (PNB) 6.5% and State Bank of India (SBI) 6.5%.

Keep these things in mind before investing money in NSC

National Savings Certificate (NSC) is a post office savings scheme. You can invest a minimum of Rs 1000 in NSC. At the same time, there is no upper limit of investment. However, the scheme has a lock-in period of 5 years. Also, keep in mind that the interest rate on National Savings Certificates is compounded annually. On the other hand, compounding of interest rates in bank FDs is done on a quarterly basis, which gives a slightly higher annual yield. You can invest only up to Rs 1.5 lakh in tax saving fixed deposits.

Disclaimer: Here only the information about the performance of the stock is given, it is not an investment advice. Investment in share market is subject to risk and you should consult your advisor before investing.

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In order to control the inflation rate, the country’s central bank (RBI) has increased the repo rate six times, due to which the interest rates of bank FDs increased several times. Due to the rapidly increased Fixed Deposit interest rates, some banks are giving good interest to the investors. At the same time, investors are being given more interest than before on Tax Saving Fixed Deposit.

Here is information about tax saving fixed deposits of SBI, HDFC Bank, ICICI Bank and other banks. By comparing these interest, you can know which bank will give you more profit with tax saving. However, before that let us know about tax saving FD.

What is tax saving fixed deposit 

Under tax saving FD, along with a fixed return, the benefit of tax exemption is also given. Under this, exemption can be claimed under Section 80C of the Income Tax Act 1961.

Tax Saving Fixed Deposit Features 

• Under this FD, an account can be opened on investment ranging from Rs 100 to Rs 1.5 lakh.
• The lock in period is for five years.
• This FD gives interest on monthly or quarterly basis.
• Tax will be applicable on the interest earned.
• The rule of premature withdrawal is not applicable in this.
• There will be an option of joint account in tax saving FD scheme.

Which bank is giving more interest on tax saving FD 

SBI Bank is paying 6.50% interest on tax saving FD. On the other hand, HDFC Bank 7%, ICICI Bank 7%, Axis Bank 7%, IndusInd Bank 7.25% and DCB Bank 7.60% are paying interest on five-year tax saving FD.

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But many senior citizens work even after the age of 60 years. However, if the income is above the tax limit, senior citizens also have to pay tax. But there are some schemes through which senior citizens can get rid of tax.

Investment Schemes for Senior Citizens to Avoid

Tax There are some investment schemes for senior citizens if they want to get rid of tax. By investing in these schemes, senior citizens not only get tax exemption, but also get a good return on investment. Let’s take a look at these 5 investment schemes.

1. Senior Citizen Savings Scheme:-

The Central Government’s Senior Citizen Savings Scheme is an excellent investment option for senior citizens. This scheme not only provides tax exemption, but also provides good returns. The central government has increased the interest rate on this scheme from 7.6% to 8% from January 1, 2023. The minimum investment period is 5 years, which can be extended up to 3 years. Up to 15 lakh rupees can be invested in this scheme. A minimum investment of Rs 1.50 lakh is required for tax exemption.

2. Tax Saving Fixed Deposit :-

This scheme is available for investment of senior citizens in all banks of the country. However, the interest rate on this scheme is different in all banks. 7.75% in Axis Bank, 7.25% in SBI. In this too, the minimum period of investment is 5 years and up to 1.50 lakh rupees can be invested in a year.

3. National Savings Certificate :-

This investment scheme also exempts senior citizens from tax for a minimum period of 5 years. This is a central government scheme and has increased the interest rate on this KM from 6.8% to 7% from January 1, 2023.

4. ELSS Scheme:-

ELSS scheme of mutual funds is also a good option for tax exemption for senior citizens. It has a minimum investment period of 3 years. The return on this scheme depends on the fluctuations in the market. In this case, the risk remains.

5. Tax Free Bonds :-

This is also a good option for citizens to get rid of tax. In this scheme, bonds are issued by government companies or institutions. The minimum period of investment in this scheme is 5 years.

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