Best Tax Saving Bank FD Interest Rate 2016: Tax saver bank FDs are best income tax saving instrument. One can do a last minute fixed deposit scheme and save up to Rs 1.5 lakh max under section 80C of the Indian Income Tax Act, 1961. One have to go for a minimum locking period of 5 years duration to get income tax benefit.
As an Investor, you can open a Bank FD to save tax as “Single holder Type Deposits” and “Joint holder Type Deposits”. Remember one thing, the return from such tax saver FD is also taxable and also attracted to pay TDS. In case you belong to 30% slab income tax, then it is a good idea to invest in tax saver FD schemes.
Top 5 Tax Saving FDs for 2016
Considering an investment of Rs 10,000 for selected tenure in Bank Fixed deposit. You will find out how much the return will be after the time mentioned in the last column. Remember the duration of investment here is 5 years.
|Bank Name||Interest Rate||Final Return|
|Lakshmi Vilas Bank||7.80||14,714|
|City Union Bank||7.75||14,678|
|Karur Vysya Bank||7.75||14,678|
Note: This data is collected from The Economic Times Wealth Magazine. Please visit the bank website first to check the current Tax Saver bank FD interest rates in 2016 and then only invest in fixed deposit schemes.