Tax-Saving FDs: SBI vs PNB vs HDFC Bank vs ICICI Bank

Tax saving fixed deposits are a type of fixed deposits which offer dual benefits of tax saving and assured returns. They come with a lock-in period of five years. The maximum amount that can be deposited in a tax saving FD is Rs 1.5 lakh in a financial year. The interest rates vary from bank to bank.

Take a look at interest rates offered by the country’s four major public and private commercial banks — State Bank of India (SBI), Punjab National Bank (PNB), HDFC Bank and ICICI Bank.

SBI Tax Saving FD rates

State Bank of India (SBI), the country’s largest lender, offers tax savings FD schemes to its customers. The minimum deposit amount under this scheme is Rs 1,000 and in multiples of Rs 100 thereafter. Rate of interest as applicable to term deposits is 5.40% for the general public. Senior citizens can avail 0.50% additional interest on their fixed deposit.

PNB Tax shield FD rates

The country’s second largest state-owned bank Punjab National Bank (PNB) now offers 5.25% interest on tax saver fixed deposits to the general public for tenure of five years . But senior citizens will get 5.75% interest for the same tenures.

HDFC Bank, the country’s largest private sector bank, also offers tax saving fixed deposit options. One can open this account depositing just Rs 100. The tenure and lock in periods is five years. Now HDFC Bank offers an interest rate of 5.50% per annum on tax-saving FD to the general public.

ICICI Bank tax saver FD rates

The ICICI Bank tax saver fixed deposit offers the opportunity to earn 5.35% interest. The minimum investment amount is Rs 10,000 for a duration of five years.