Higher Return: Invest in ELSS, FD or time deposit scheme for best returns with tax saving

• Investing in a time deposit for 5 years will yield 6.7% interest annually
  DCB Bank is paying 6.95% interest on tax saving FD
• In the last 10 years, ELSS mutual fund category has given a return of around 8.5%.

If you are planning to invest in a place where you get the benefit of income tax rebate along with better return on investment, then you can invest in ELSS category of tax saving FD, post office time deposit and mutual fund. Today we are telling you about these three schemes so that you can invest in the right place according to your own.

Also Read: How To Open And Manage An NPS Account Online?

Post office time deposit scheme

• This is a kind of fixed deposit (FD). You can take advantage of fixed returns and interest payments by investing lump sum money for a fixed period in it.
• The post office time deposit account offers an interest rate of 5.5 to 6.7% for a period ranging from 1 to 5 years.
• According to the official website of India Post, one can avail tax exemption under Section 80C of the Income Tax Act, 1961 for investing under a fixed deposit of 5 years.
• A tax exemption of up to Rs 1.5 lakh can be taken under section 80C of the Income Tax Act.
• It has to invest a minimum of 1000 rupees. There is no maximum investment limit.
• A person whose age is more than 18 years can invest in the scheme. In this, joint account can also be opened.

Tax Saving FD
Investment tax of up to Rs 1.5 lakh can be availed under Section 80C of the Income Tax Act on investment in a 5-year FD. In such a situation, you can invest in them. We are telling you which bank is paying how much interest on tax saving FD.

Bank	Rate of interest(%)
DCB Bank	6.95
IndusInd Bank	6.75
RBL Bank	6.50
Yes Bank	6.00
SBI	5.40
ICICI	5.50
HDFC	5.50

Equity Linked Savings Scheme (ELSS)

• There are 42 mutual fund companies in the country that run tax saving schemes. Every company has ELSS to save income tax. It can be purchased online at home or through an agent.
• If you want to invest in one go to save income tax, then usually a minimum investment of 5 thousand rupees and if you have to invest every month, then usually a minimum investment of 500 rupees a month can be started. There is a maximum tax rebate of Rs 1.5 lakh, but there is no limit to the maximum investment.
• Investment in this income tax saving scheme is locked-in for 3 years. After this, the investor can withdraw this money if he wants. After three years, if you wish, withdraw the entire amount or withdraw as much money as you need and leave the remaining money in this ELSS for as long as you want.
• In this, the market link returns instead of the interest rate on investment. In the last 10 years, the ELSS mutual fund category has given a return of around 8.5%.

These ELSS funds gave excellent returns

Fund Name	Returns in last 1 year (%)	Return (%) in last 3 years	Return (%) in last 5 years	Returns in the past 2019 (%)
BOI AXA Tax Advantage Fund	23.3	7.9	12.5	14.6
DSP Blackrock Tax Saver Fund	16.7	11.2	11.9	10.7
Canara Robeco Equity Tax Saver	6.1	5.2	11.3	14.8
Motilal Oswal Long Term Equity Fund	1.9	3.3	11.0	13.2
HDFC Long Term Advantage Fund	4.7	4.2	11.0	10.1

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