INSUBCONTINENT EXCLUSIVE:
Top banks pay interest rates ranging from 6.7% to 7.25% on five-year deposits up to Rs 1 croreHave you fully utilised the income tax
That means you can deduct up to Rs 1.5 lakh from your taxable income in a year using the Section 80C provisions
Investments in a variety of tax-planning instruments such as five-year fixed deposit qualify for Section 80C benefits
Maturity proceeds from five-year fixed deposits, also known as tax-saving fixed deposits, are exempt from income tax
Having thorough knowledge of one's Section 80C deductions determines whether a person should opt for a five-year term for setting up a
other options, investment in the tax saving FD will not fetch any additional tax benefit," said Gopal Bohra, partner, N.A Shah Associates
on fixed deposits with a maturity period up to five years:State Bank of India (SBI)PeriodInterest rate for general public7 days to 45
days5.75%46 days to 179 days6.25%180 days to 210 days6.35%211 days to less than 1 year6.40%1 year to less than 2 year6.65%2 years to less
than 3 years6.65%3 years to less than 5 years6.70%(Source: sbi.co.in)HDFC BankPeriodInterest rate for general public7 - 14 days3.50%15 - 29
days4.25%30 - 45 days5.75%46 - 60 days6.25%61 - 90 days6.25%91 days - 6 months6.25%6 mnths 1 day- 6 mnths 3 days6.75%6 mnths 4 days6.75%6
mnths 5 days- 9 mnths6.75%9 mnths 1 day- 9 mnths 3 days7.00%9 mnths 4 days7.00%9 months 5 days - 9 months 15 days7.00%9 months 16 days7.00%9
months 17 days < 1 Year7.00%1 Year7.25%1 year 1 day - 1 year 3 days7.25%1 year 4 days7.25%1 year 5 days - 1 Year 15 Days7.25%1 Year 16
years7.10%5 years (Tax Saving Fixed Deposit; maximum investment Rs 1.5 lakh)7.10%(Source: hdfcbank.com)ICICI BankPeriodInterest rate for
general public7 days to 14 days4%15 days to 29 days4.25%30 days to 45 days5.50%46 days to 60 days5.75%61 days to 90 days6%91 days to 120
days6%121 days to 184 days6%185 days to 289 days6.50%290 days to less than 1 year6.75%1 year to 389 days6.75%390 days to 2 years7%2 years 1
day upto 5 years7.25%5 Years Tax saver FD (up to Rs 1.5 lakh)7.25%(Source: icicibank.com)"If the taxpayer already utilized limit of Rs
1.50 lakh then he can consider investing his surplus into regular fixed deposit so there will be no 5 year locking or can consider investing
into mutual fund after consulting the investment advisor," adds Mr Bohra.
