Regular fixed deposits (FDs), which are popular among investors, are different from their tax-saving counterparts. Tax-saving fixed deposits (FDs) require customers to lock-in their investment for a minimum period of five years. Interest rates on tax-saving fixed deposits (FDs) are no doubt attractive but a premature withdrawal is not allowed. So while you can redeem regular fixed deposits before their maturity period, tax-saving fixed deposits cannot be redeemed before maturity. Interest income earned on fixed deposits is taxable. Key banks like State Bank of India (SBI), ICICI Bank, HDFC Bank and post offices offer the option of tax-saving fixed deposits.
Given below is a comparison of interest rates on tax-saving fixed deposits (FDs) of SBI, ICICI Bank, HDFC Bank and post offices
State Bank of India (SBI) tax-saving fixed deposit (FD) interest rates
The following interest rates are from sbi.co.in
(All figures in % per annum)
| Tenors | Revised For Public w.e.f. 28.03.2018 | Revised for Senior Citizens w.e.f. 28.03.2018 |
| 5 years and up to 10 years | 6.75 | 7.25 |
| Single Deposit | Rates of Interest (% p.a.) w.e.f May 15, 2018 | ||||
| Tenure Period | ₹ 1 crore to less than ₹ 5 crore | ||||
| 5 years 1 day to 7 years | 6.6 | ||||
| 7 years 1 day to 10 years | 6.6 | ||||
| Period | < 1 Crore | |
| Interest Rate (per annum) | **Senior Citizen Rates (per annum) | |
| 5 Years 1 Day - 8 Years | 6% | 6.50% |
| 8 Years 1 Day - 10 Years | 6% | 6.50% |
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