Only 21 days left to save tax in March 2025: Check 21 fixed deposit options from SBI to HDFC Bank, and more

3 min read | Updated on March 10, 2025, 12:25 IST

SUMMARY

While there are several investment options under section 80C for tax-saving, five-year fixed deposits in banks and post offices are one of the most popular among them. In a five-year FD, your funds are locked-in for five years. And the interest rate offered by banks and the post office range from 6-7.25% for general citizens and 7.5-8% for senior citizens.

21 tax saving fixed deposit interest rate

The last date to make tax-saving fixed deposit investment for FY 2024-25 is March 31. | Image source: Shutterstock

All eyes are on tax-saving investments as the deadline to do so for financial year 2024-25 is just 21 days away. Taxpayers opting for the old tax regime can save tax on up to ₹1.5 lakh income by making investments in schemes that are approved for deduction under section 80C.

Open FREE Demat Account within minutes!

Join now

While there are several investment options under section 80C for tax-saving, five-year fixed deposits in banks and post offices are one of the most popular among them.

In a five-year FD, your funds are locked-in for five years. And, the interest rate offered by banks and the post office range from 6-7.25% for general citizens and 7.5-8% for senior citizens.

The following is a list of 5-year tax-saving fixed deposits offered by 21 financial institutions, including the post office, and their interest rates for both senior and general citizens.

21 five-year tax saving fixed deposit options

S. No.	Bank	General Citizen FD Rate	Senior Citizen FD Rate
1	State Bank of India	6.50%	7.50%
2	HDFC Bank	7%	7.50%
3	ICICI Bank	7%	7.50%
4	Post Office	7.50%	7.50%
5	Bank of Baroda	6.80%	7.40%
6	Punjab National Bank	6.50%	7%
7	Kotak Mahindra Bank	6.20%	6.70%
8	Bank of India	6%	6.50%
9	Central Bank of India	6.75%	7.25%
10	Bandhan Bank	7%	7.50%
11	RBL Bank	7.10%	7.60%
12	IndusInd Bank	7.25%	7.75%
13	Axis Bank	7%	7.75%
14	IDBI Bank	6.50%	7%
15	IDFC First Bank	6.75%	7.25%
16	Bank of Maharashtra	6.50%	7%
17	Karnataka Bank	6.50%	7%
18	South Indian Bank	6%	6.50%
19	UCO Bank	6.20%	6.70%
20	Union Bank of India	6.50%	7%
21	Yes Bank	7.25%	8%

Source: Respective bank's website as of March 10, 2025.

Other tax-saving schemes that compare with the 5-year FD are National Savings Certificate (NSC) and Senior Citizen Savings Scheme. Both of them have a 5-year lock-in but SCSS is only for senior citizens. Taxpayers looking for an investment option with a shorter lock-in period may consider Equity-Linked Savings Scheme (ELSS).

ELSS funds have a 3-year lock-in and they are offered by mutual fund houses. However, the ELSS funds are more risky compared to fixed deposits and other post office tax-saving schemes.