Best Tax Saver Fixed Deposit Scheme
You all might know that we can indeed save tax by investing in a bank fixed deposit under section 80C (2) of Income Tax Act. This is very much like a regular fixed deposit but the only difference is that you would need to put in the money for at least 5 years in such tax saver fixed deposit. You cannot withdraw in between unlike the regular fixed deposit. This option can be availed from any bank operating in India both government owned as well as private banks.
The main reason to opt for such tax saving option is the safety of our invested money but the returns they offer at the current economic scenario is far less when compared with other tax saving investment opportunities available in India like NSC, PPF, ELSS, etc.
The current rate of interest for the tax saver fixed deposit varies between or around 6 to 7% but there is only one back currently which is offering at the rate of 8% for a total of five years and 8.5% for senior citizens. The bank that offers this rate for the tax saver fixed deposit is the Punjab National Bank or PNB. As said above PNB tax saver offers an interest rate of 8% for general category and 8.5% for senior citizens for five years. You can open such fixed deposits to save tax at your nearest Punjab National Bank just like you open a regular bank account by providing the necessary documents.
Considering the current interest rates and the unpredictability of stock market and mutual funds, this tax saver fixed deposit at 8% interest p.a. is a great boon for us where our money is safe as well as get the assured returns at the end of 5 years. This can be no doubt be termed as the best tax saver fixed deposit for the current financial year 2010.
Visit this link for more details about this Fixed Deposit, i.e., PNB Tax Saver.
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