How to save tax by investing in Bank FD?

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Best Performing Mutual Funds

1. Largecap Funds:
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds
1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
3. Mid and SmallCap Funds
1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
4. Small and MicroCap Funds
1. DSP BlackRock MicroCap Fund
5. Sector Funds
1. Reliance Banking Fund
2. Reliance Banking Fund
6. Gold Mutual Funds
1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund

A fixed deposit is meant for those investors who want to deposit a lump sum of money for a fixed period; say for a minimum period of 15 days to five years and above. Investor gets a lump sum (principal + interest) at the maturity of the deposit.

The 5-year tax-saving bank deposit gives tax benefit under Section 80C as the amount you invest in the 5 year FD is deducted from your taxable income.
However interest received on the FD is taxable.

Summary of 5 Yr Bank FD Details

	Return (p.a.)		Typical interest rate is 8.00 to 8.50% with an additional 0.25 to 0.5% for senior citizens. The interest rate varies between banks and with time.
Risk		NIL
Lock In		5 years
Income from Investment		Interest received is taxable
Maturity Proceeds		Includes interest which is already taxed
NRI/PIO eligible		Yes