Save taxes under Section 80C with 5-year fixed deposits. Compare rates across all banks and Post Office.
Highest tax saving FD rate at 7.50% for 5 years with sovereign guarantee. The interest is also competitive for senior citizens at 7.50%. Best overall choice for Section 80C FD investment.
HDFC Bank offers 7.00% (general) and 7.50% (senior) for 5-year tax saving FD. With DICGC insurance, massive branch network, and easy online booking, it is a trusted choice for salaried investors.
IDFC First Bank offers 7.00% (general) and 7.50% (senior) for the 5-year tax saving FD. Digital-first experience with easy online FD creation and management. Good for tech-savvy investors.
5-year lock-in FDs eligible under Section 80C. Maturity calculated for ₹1.5 Lakh deposit (max 80C limit). Sorted by rate.
| Bank | 5Y General Rate | 5Y Senior Rate | Min Deposit | Maturity (₹1.5L) | 80C Eligible | |
|---|---|---|---|---|---|---|
| Post Office | 7.5% | 7.5% | ₹1,000 | ₹2,17,492 | Yes | Calculate Maturity → |
| HDFC Bank | 7% | 7.5% | ₹5,000 | ₹2,12,217 | Yes | Calculate Maturity → |
| Axis Bank | 7% | 7.5% | ₹5,000 | ₹2,12,217 | Yes | Calculate Maturity → |
| IndusInd Bank | 7% | 7.5% | ₹10,000 | ₹2,12,217 | Yes | Calculate Maturity → |
| Yes Bank | 7% | 7.5% | ₹10,000 | ₹2,12,217 | Yes | Calculate Maturity → |
| IDFC First Bank | 7% | 7.5% | ₹10,000 | ₹2,12,217 | Yes | Calculate Maturity → |
| ICICI Bank | 6.9% | 7.4% | ₹10,000 | ₹2,11,176 | Yes | Calculate Maturity → |
| Canara Bank | 6.7% | 7.2% | ₹1,000 | ₹2,09,110 | Yes | Calculate Maturity → |
| SBI | 6.5% | 7% | ₹1,000 | ₹2,07,063 | Yes | Calculate Maturity → |
| Kotak Mahindra Bank | 6.5% | 7% | ₹5,000 | ₹2,07,063 | Yes | Calculate Maturity → |
| Bank of Baroda | 6.5% | 7% | ₹1,000 | ₹2,07,063 | Yes | Calculate Maturity → |
| PNB | 6.5% | 7% | ₹1,000 | ₹2,07,063 | Yes | Calculate Maturity → |
| Union Bank | 6.5% | 7% | ₹1,000 | ₹2,07,063 | Yes | Calculate Maturity → |
| Indian Bank | 6.5% | 7% | ₹1,000 | ₹2,07,063 | Yes | Calculate Maturity → |
| IDBI Bank | 6.5% | 7% | ₹1,000 | ₹2,07,063 | Yes | Calculate Maturity → |
| Bank of India | 6.5% | 7% | ₹1,000 | ₹2,07,063 | Yes | Calculate Maturity → |
| Central Bank | 6.5% | 7% | ₹1,000 | ₹2,07,063 | Yes | Calculate Maturity → |
| Federal Bank | 6.5% | 7% | ₹5,000 | ₹2,07,063 | Yes | Calculate Maturity → |
| Bandhan Bank | 6.5% | 7% | ₹1,000 | ₹2,07,063 | Yes | Calculate Maturity → |
| South Indian Bank | 6.25% | 6.75% | ₹1,000 | ₹2,04,531 | Yes | Calculate Maturity → |
A tax saving Fixed Deposit is a special FD with a mandatory 5-year lock-in period. The principal amount (up to ₹1.5 Lakh per financial year) qualifies for tax deduction under Section 80C of the Income Tax Act.
See exact maturity for ₹1.5 Lakh invested for 5 years at your chosen bank's rate.
Open FD Calculator →A tax saving FD is a 5-year fixed deposit that qualifies for income tax deduction under Section 80C. You can claim deduction up to ₹1.5 Lakh per financial year, saving up to ₹46,800 in taxes (at 30% slab + 4% cess). Only bank and Post Office FDs qualify — NBFC FDs do not.
No. Tax saving FDs have a mandatory 5-year lock-in period. Premature withdrawal, loans, or overdraft against tax saving FDs are not allowed. This lock-in is what qualifies the FD for Section 80C benefits. Plan your liquidity needs before investing.
Yes, the interest earned on a tax saving FD is fully taxable as per your income tax slab. TDS is applicable if the annual interest exceeds ₹40,000 (₹50,000 for senior citizens). Only the principal investment qualifies for 80C deduction, not the interest earned.
ELSS mutual funds offer higher return potential (12-15% CAGR) with a shorter 3-year lock-in but carry market risk. Tax saving FDs offer guaranteed returns (6.50-7.50%) with a 5-year lock-in and zero risk. Choose FD if you want capital safety and guaranteed returns; choose ELSS for higher growth potential.
By investing ₹1.5 Lakh in a tax saving FD, you can save up to ₹46,800 per year (at 30% slab + 4% cess). Over 5 years, that is ₹2.34 Lakh in cumulative tax savings. Meanwhile, at 7.50% interest (Post Office rate), your ₹1.5 Lakh will mature to approximately ₹2.16 Lakh.