Bank tax Savings Fixed Deposits are one of the safest investment avenues to consider for savings under 80C of the IT Act.
One can save tax by investing in Bank Tax Savings Fixed Deposits, where the only problem is the 5-year lock-in, as compared to three years in ULIPs or ELSS.
If you are among those set of investors who have ample liquidity and wish to invest in instruments that saves tax for you.
Here is a look at some such tax saving deposit scheme of different public and private sector banking institutions that currently are offering highest returns.
Lakshmi Vilas Bank
To both regular and senior citizens, the bank offers an interest rate of 8.75% per annum.
IDBI Bank
IDBI Bank Tax-Saving Fixed Deposit which gives the dual benefits of tax exemption u/s 80c of the Income Tax Act and higher returns on your investments with interest rates at 8.75% p.a. for regular deposits and 9.25 % p.a. for Senior Citizens
City Union Bank
For both general and senior citizen, the bank offer a rate of interest p.a. Of 8.50%. In case of joint holding, the tax break shall be available only to the first or primary holder in the deposit scheme.
Bank of Baroda
Baroda Tax savings term deposit on its tax saving deposits is offering an interest rate @ 8.75 p.a. The interest rate remains the same for still higher tenure over 5 years.
ICICI Bank Tax-Saver Fixed Deposi
On its tax saving deposit scheme, the private sector lender is providing a return of 8.75%.
More From GoodReturns

New PAN Card Rules From April 1, 2026: How To Apply For New PAN Card Via Protean, E-Filing Portal?

LPG Gas Cylinder Prices Hiked Again From April 1; 19 KG LPG Gets Costlier By Rs 218; 14.2 KG LPG Unchanged

Gold Rate in India Rises Over Rs 37,000/24K in Three Days; Will Jump in Gold Price Today Continue on 31 March?

Gas Cylinder Booking Rules: 5 Things To Know For Your 14.2Kg, 19KG, 5KG, 10KG LPG Booking In April 2026

Gold Rate Today Continues Rally, 24K Jumps Over Rs 35000 in 2 Days; 22K & 18K Gold, Silver Prices in Delhi

Bank Holiday In April 2026: Banks To Be Closed For 14 Days; Good Friday, Baisakhi To Akshaya Tritiya

Gold Price Today Declines After 3-Day Surge; Check Latest 22K, 24K, 18K Gold & Silver Rates in Delhi on 2April

Gold Price Today, April 3: 22K, 24K Rates Jump Across Tanishq, Malabar, Kalyan & Joyalukkas & IBJA

5 New Shares On One Soon: Anil Agarwal's Vedanta Demerger To Take Place in April, Says Report

Fresh Drop in Gold Rate Today; Silver Stable: Latest 22K, 24K, 18K Gold & Silver Prices in Delhi on 30 March

Govt Approves PDS Kerosene Distribution in 21 States for 60 Days, Sets 5,000 L Storage Limit Amid LPG Crisis



Click it and Unblock the Notifications