Fixed Deposit: This bank is offering the best interest rate on tax saving fixed deposits

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The Reserve Bank of India (RBI) has increased the repo rate six times to control inflation. Due to which interest rates on fixed deposits have increased. Some banks are now offering higher interest rates, especially for tax-saving fixed deposits, to attract investors.

Know what is Tax-Saving Fix Depot Jit?
It is a type of Fixed Deposit that not only gives you a good return on your investment but also provides the benefit of tax exemption under Section 80C of the Income Tax Act, 1961. This means that you can claim tax exemption on the amount invested in it. Tax saving FD, up to a maximum of Rs 1.5 lakh.

The features of Tax-Saving Fixed Deposit are as follows:

You can open the account with an investment of Rs 100 to Rs 1.5 lakh and the lock-in period is for five years. You can opt for interest payment on a monthly or quarterly basis, but the interest earned is taxable. There is no provision for premature withdrawal and a joint account option is also available.

Now, let us compare the interest rates offered by different banks on their tax-saving fixed deposits. SBI Bank is offering an interest rate of 6.50%, while HDFC Bank, ICICI Bank, Axis Bank and IndusInd Bank are offering 7%. DCB Bank is currently offering a high interest rate of 7.60% on five-year tax-saving fixed deposits.

It is advised to do thorough research before investing in any financial. You can compare the interest rates offered by various banks and choose the one that best suits your investment goals and financial needs. However, keep in mind that high returns come with high risk, and you must invest wisely to avoid financial loss.

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