Tax-saver FD rates at 12 banks and the post office
Last checked 3 November 2026. Card rates for a regular deposit below ₹3 crore.
Ujjivan Small Finance Bank pays the most on a 5-year tax-saver FD at 7.20%: ₹1.5 lakh, the full 80C limit, grows to ₹2,14,312. The post office 5-year time deposit pays 7.5% and grows the same amount to ₹2,17,492.
| # | Bank | Rate | ₹1.5 lakh becomes | Senior rate | Senior gets back |
|---|---|---|---|---|---|
| 1 | Ujjivan Small Finance Bank Small finance bank, from 5 August 2025 | 7.20% | ₹2,14,312 | Not stated | |
| 2 | Utkarsh Small Finance Bank Small finance bank, from 1 November 2026 | 7.00% | ₹2,12,217 | 7.50% | ₹2,17,492 |
| 3 | City Union Bank Private, from 21 October 2026 | 6.75% | ₹2,09,625 | Not stated | |
| 4 | IDFC FIRST Bank Private, date not stated by the bank | 6.75% | ₹2,09,625 | 7.00% | ₹2,12,217 |
| 5 | RBL Bank Private, date not stated by the bank | 6.70% | ₹2,09,110 | 7.20% | ₹2,14,312 |
| 6 | IndusInd Bank Private, from 30 October 2026 | 6.65% | ₹2,08,596 | 7.15% | ₹2,13,786 |
| 7 | ICICI Bank Private, date not stated by the bank | 6.50% | ₹2,07,063 | 7.10% | ₹2,13,262 |
| 8 | Karnataka Bank Private, from 8 June 2026 | 6.50% | ₹2,07,063 | 6.90% | ₹2,11,176 |
| 9 | Bandhan Bank Private, date not stated by the bank | 6.25% | ₹2,04,531 | 7.25% | ₹2,14,839 |
| 10 | IDBI Bank Private, from 21 September 2026 | 6.25% | ₹2,04,531 | 6.75% | ₹2,09,625 |
| 11 | Indian Overseas Bank Public sector, from 15 May 2026 | 6.10% | ₹2,03,026 | 6.60% | ₹2,08,084 |
| 12 | South Indian Bank Private, from 19 June 2026 | 5.70% | ₹1,99,063 | 6.20% | ₹2,04,028 |
| Ref | Post Office Time Deposit, 5 years Government of India. October-December 2026. | 7.5% | ₹2,17,492 | 7.5% | ₹2,17,492 |
Tax-saver FDs lock in for 5 years and qualify for the Section 80C deduction (up to ₹1.5 lakh a year) in the old tax regime only. Listed here only where the bank publishes a separate tax-saver rate. Interest compounds every quarter and is paid at maturity, before tax.
How a tax-saver FD works
- A fixed 5-year term. No early withdrawal and no loan against it.
- Up to ₹1.5 lakh a year counts towards the Section 80C deduction, in the old tax regime only.
- The interest is taxable every year at your slab rate. Banks deduct TDS when your total FD interest at that bank in a financial year crosses ₹50,000, or ₹1,00,000 for senior citizens.
- Other 80C options with a fixed rate include PPF and NSC. Compare all regular 5-year deposits on the 5-year FD rates page.
Questions people ask
Which bank pays the most on a tax-saver FD?
Ujjivan Small Finance Bank pays 7.20% among the banks that publish a separate tax-saver rate. ₹1.5 lakh there grows to ₹2,14,312 in 5 years.
Can I claim 80C on a tax-saver FD in the new tax regime?
No. The Section 80C deduction is available only in the old tax regime. In the new regime a tax-saver FD is simply a 5-year deposit you cannot break early. Check which regime suits you with the old vs new regime calculator.
Can I withdraw a tax-saver FD early?
No. Tax-saver FDs have a 5-year lock-in and cannot be closed or pledged for a loan before maturity, except on the death of the depositor.
Is the post office 5-year deposit better?
The post office 5-year time deposit pays 7.5% for October-December 2026, also qualifies for 80C in the old regime, and is backed by the Government of India. 0 of the 12 banks here pay more than that.
More FD rate pages
1-year FD rates · 2-year FD rates · 3-year FD rates · 5-year FD rates · Senior citizen FD rates · All FD rate pages · Post office FD rates · SCSS interest rate
Sources: Ujjivan Small Finance Bank deposit rates; Utkarsh Small Finance Bank deposit rates; City Union Bank deposit rates; IDFC FIRST Bank deposit rates; RBL Bank deposit rates; IndusInd Bank deposit rates; ICICI Bank deposit rates; Karnataka Bank deposit rates; Bandhan Bank deposit rates; IDBI Bank deposit rates; Indian Overseas Bank deposit rates; South Indian Bank deposit rates; ICICI Bank: FD interest rates and TDS; Bandhan Bank: rates and charges, TDS on term deposits.