Tax saving Fixed Deposits are seeking investors by offering High interest rates

November 25, 2011   ·   0 Comments

With the December approaching people have started nibbling in Tax saving options. Investors have lot to cheer this year with PPF, NSC interest rate increased. But if you are planning on picking NSC this year which has been offering 8.7% interest, then Hold on. Check on the Tax saving 5 year Fixed Deposits interest rates which is much more lucrative than NSC. This has given enough reason for people that Why you should avoid NSC this year.

www.stockssavvy.comSince interest rates have risen sharply this year, even tax saver fixed deposit is offering good interest rates. Most banks are offering above 9% interest rate. For Senior Citizen, it is even higher by 25 basis points to 75 basis points. This will definitely affect the business for Insurance companies who will find it difficult to find new investors investing in their Endowment & Money back policies.

We will list down the interest rates offered by banks for tax saving fixed deposits. The interest rate may go even higher by 25 basis points as RBI recently increased the lending rates by 25 basis points.

Banks offering 8.75% tax saver FD include: ICICI Bank, Yes Bank, Bank of India, Dena Bank
Banks offering 9.00% tax saver FD include: Bank of Baroda, Canara Bank, Indian Overseas Bank
Banks offering 9.25% tax saver FD include: Syndicate Bank, Kotak Bank, Corporation Bank
Banks offering 9.50% tax saver FD include: State Bank of Travancore, Karnataka Bank, IDBI Bank
Banks offering 10.00% tax saver FD include: Tamil Nadu Mercantile Bank

Among these options, we would recommend IDBI Bank which has a global presence which is offering 9.50% interest rate for regular citizens and 10.25% interest rate for senior citizens for tax saver fixed deposit. High interest Fized deposit has come as a blessing  for a retail investor whose appetite for taking risk is considered low. The interest on these Fixed deposit is TDS free & no tax is levied on the interest.

Rajesh Singla

Rajesh is the founder & CEO of Stockssavvy, Stocks analyst,financial advisor by choice,software engineer by fate,biker,gamer,cricket lover n enthusiastic person. He believes in doing things not just to get by but to get Ahead...

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