Tax Saving FD: Have a plan to save tax at the last moment? These options of fixed deposit will be useful

Tax Saving FD: This is the last time for tax saving for the financial year 2023. If you have selected many other options from the post office to NPS, home loans and mutual funds for tax saving and even after that you are looking for the option of tax saving, then the option of fixed deposit tax saving can be better for you...

Many banks are offering the option of tax exemption on fixed deposits. You can save maximum tax in these FDs. The option of tax-saving FD is also offered by the post office, whose maturity period is five years. The tax savings on FDs are similar to mutual funds, debt investments and small savings schemes.

How much interest is being received on tax-saving FD
Major banks of the country like SBI are giving 6.50% interest on tax-saving fixed deposits to regular citizens. HDFC Bank and ICICI Bank are giving 7% annual interest to such people. On the other hand, DCB Bank is paying 7.60 per cent and AU Small Finance Bank is paying 7.20 per cent interest on tax-saving FD.

How much tax can be saved?
If you are going to invest in tax-saving FD, then tell that you can save tax under section 80C of the Income Tax Act 1961. However, only those who have opted for the old tax regime can get tax exemption from it. Under the new tax regime, they are not given the option of saving tax. A tax saving of up to Rs 1.5 lakh can be done under the old tax regime.

Know these things before investing in tax saving
Individuals and HUFs only can invest in this tax-saving FD. A minor can invest in FD with the help of a parent.
There are many options for FD tax saving. You can save up to a maximum of 1.5 lakhs.
Has a maturity period of 5 years, but premature withdrawal and loan permits are not allowed.