ET Wealth annual ranking of tax-saving instruments helps such individuals make the right choices. We assessed 10 tax-saving options on eight key parameters—returns, safety, flexibility, liquidity, costs, transparency, ease of investment and taxability of income. Each parameter has equal weightage and the composite scores determine the place in the ranking.
Interest rate of post office time deposits (POTD) which matures in five years, has touched 7.5 per cent for the July-September quarter of 2023. The post office time deposit is similar to bank fixed deposits. Backed by the government, the money in the post office term deposits is completely protected, with guaranteed returns. When compared to five-year tax saving fixed deposits (FDs) of major public and private sector banks, 5-year post office time deposits offers a higher interest rate. Should you invest in 5-year POTD or 5-year bank fixed deposits? Let s find out
To determine whether an investment is most suitable for customers, here s a comparison of the features of the National Savings Certificate with those of five-year bank fixed deposits.
Investments made through tax-saving FDs qualify for tax savings under section 80C of the Income Tax Act, making them an attractive option for individuals looking to reduce their tax burden.