Tax Saver FD Calculator — 5-Year 80C Fixed Deposit — FY 2026-27

A 5-year fixed deposit that qualifies for Section 80C deduction up to ₹1.5 L per FY. Mandatory 5-year lock-in (no premature break, unlike regular FD). Available at every scheduled commercial bank. Interest is fully taxable at slab rate — only the principal deposit qualifies for 80C. Not available under the new tax regime (new regime forfeits 80C).

Tax-saver FD rates (FY 2026-27): SBI 6.50%, HDFC 6.75%, ICICI 7.00%, Axis 7.00%, Kotak 6.80%, PSU banks 6.50-6.75%. Senior citizens get +0.5% bonus, same as regular FDs. Rates are 10-50 bps below bank top-paying regular FDs — the 80C benefit typically offsets the lower rate.

Tax Saver FD: 6.75% taxable, 5-year lock-in. PPF: 7.1% tax-free (EEE), 15-year lock-in. ELSS: 11-14% market-linked (historical), 3-year lock-in, 10% LTCG above ₹1 L. For short horizon (5-year) tax-saving, FD and PPF are close — FD wins on liquidity post-lock-in. For long horizon, PPF or ELSS significantly outperform.

NO. The 5-year lock-in is mandatory and irrevocable. Unlike regular FDs, no bank will break a tax-saver FD early (except in death of depositor — paid to nominee). Additionally, breaking a tax-saver FD before 5 years would forfeit the 80C deduction claimed for that year, which gets added back to income.

₹1.5 L per FY per bank qualifies for 80C (within the overall 80C cap of ₹1.5 L shared with PPF, ELSS, LIC, home-loan principal, etc.). You can deposit MORE than ₹1.5 L in a tax-saver FD, but only the first ₹1.5 L gets 80C benefit — excess behaves like a regular 5-year FD.