Tax-savings FDs are fixed deposits that allow investors to claim income tax deductions under section 80C of the Income-tax Act, 1961. They have a lock-in period of five years. SBI offers an interest rate of 6.5 per cent on five-year tax-saving fixed deposits. SBI, HDFC, ICICI Bank, PNB, Kotak Mahindra, YES Bank, and others — check the interest rates of tax-saving FDs offered by the different banks before booking.
