IPOs for 2020 - Top 20 IPOs to watch out for in 2020

IPOs for 2020 - Top 20 IPOs to watch out for in 2020

The number of IPOs last year was relatively low but, fetched high returns for the investors. Attractive valuations, global liquidity and growth in the economy are few factors that will contribute to growth of capital markets and define the fate of some of the most anticipated IPOs in 2020.

Here is a tentative list of 20 upcoming IPOs in this year which can fetch good returns for investors:

1. SBI Cards and Payments
SBI Cards and Payment Services Limited, subsidiary of India’s largest commercial bank SBI, is expected to be one of the biggest upcoming IPOs of 2020.  With a market share of 18% in the Indian credit card market, it is the second-largest credit card issuer in the country. The size of the issue of the likely IPO is estimated to be around Rs 8500 crore to Rs 9500 crore.

State Bank of India currently has a 74% stake in the company and will divest up to 4% through the IPO. The remaining 26% is owned by CA Rover Holdings of the Carlyle group.

Unit Trust of India AMC, India’s oldest mutual fund is looking at selling up to 8.25% of the stake through an IPO. The size of the issue is expected to be around Rs 3,800–4,800 crore. The IPO will consist of the sale of shares by its five stakeholders which include State Bank of India, Bank of Baroda, LIC, Punjab National Bank and T Rowe Price.

Burger King(India) Limited

The Indian arm of the QSR chain Burger King had filed for a proposed IPO in November last year. The IPO is expected to raise approximately Rs 400 crore through fresh issue of shares. The company currently operates 202 outlets in 47 cities and intends to increase the number of outlets to 325 by the end of the year.

Home First Finance
Home First Finance Company (HFFC), a Mumbai-based mortgage financier, is looking to raise Rs 1500 crores from an IPO this year. In November last year, the company had filed a draft red herring prospectus with SEBI for its proposed IPO. If launched, this IPO is expected to raise Rs 1,500 crore. It would comprise of a fresh issue of Rs 400 crore and an offer for sale by promoters and investors of Rs 1,100-crore.

HDB Financial Services
HDB Financial Services, the NBFC subsidiary of India’s largest private sector bank HDFC is currently valued over Rs 80,000 crore. It is ranked as the fourth most valuable non-banking lender in the country.  HDFC Bank which currently holds a 95.53% stake in HDB, is planning to offload a part of its holding through an initial public offer and raise around Rs 10,000 crore this year. So, if this IPO is launched this year, it would surely be one of the most anticipated IPOs of 2020.

After its IPO being delayed for nearly three years, India’s largest bourse NSE is likely to launch the most awaited IPO in 2020. The company aims to raise around Rs 10,000 crore from the IPO. Stakeholders are likely to offload 20%-25% of their holdings.

Rossari Biotech
Rossari Biotech, a Mumbai-based speciality chemicals maker, founded by Edward Menezes and Sunil Chari in 1996, is looking at raising Rs 700 crore through an IPO. The company has an impressive clientele which includes brands like Vim, Lifebouy, IFB, Bosch, Panasonic to name a few.


8. Equitas Small Finance Bank
Chennai-based Equitas Small Finance Bank is looking to raise fresh capital of Rs 550 crore through a fresh issue IPO and remaining via the OFS route. The total IPO size is estimated to be around Rs 1000 crore

EaseMyTrip, an online travel company has filed papers to float an IPO of Rs 510 crore in 2020 through the OFS route. The founders of the company, Nishant Pitti and Rikant Pitti would sell shares worth Rs 255 crore each in case the IPO is launched this year.

Energy Efficiency Services Ltd (EESL)
State-run EESL, which is a part of India’s ambitious energy efficiency program, is looking to raise money through the capital markets to fund its energy efficiency plans.  The company is currently valued at around Rs 5,000 crore

Computer Age Management Services(CAMS)
CAMS, a registrar and transfer agent which is leading technology-driven service provider to the growing mutual fund industry is likely to come out with an IPO of Rs 1500 to Rs 1600 crore by the end of this year. The IPO is expected to be an OFS which will see investors offloading part of their stake holdings in the company.

Integrated Renewable Energy Development Agency(IREDA)
IREDA, a 100% government-owned entity, which is registered as a non-banking financial company, received approval from SEBI last year for an IPO. The government is looking at offloading a part of its stake worth Rs 700 crore. The company will also issue fresh shares worth Rs 13.90 crore.

Mazgaon Dock Shipbuilders
Mazagon Dock Shipbuilders, the country’s leading shipyard company is likely to float an IPO this year after receiving approval from SEBI. The company is a fully owned subsidiary of the Government of India and the stake sale is a part of the divestment plan to offload 13% of government share in the company.

SAMHI hotels
SAMHI Hotels Ltd, a Gururgram-based hotel company, owning the largest number of Marriot, IHG, and Hyatt hotels in the country, has received approval for an IPO. The company aims to raise Rs 1,100 crore of fresh capital through the IPO.

Bajaj Energy
Bajaj Energy, which is a fully owned by Bajaj Power has received capital Sebi’s approval for an IPO of Rs 5,450 crore and is expected to comprise a fresh issue of shares up to Rs 5,150 crore and an offer for sale of up to Rs 300 crore by Bajaj Power Ventures.

Fincare Small Finance Bank
The Bengaluru-based financial bank Fincare is planning an IPO of Rs 1200 crore by the mid of 2020. The IPO will be a combination of stake sale of existing shareholders and a fresh issue of shares. Incorporated in June 2017, the company is likely to come out with an IPO this year as per the new RBI guidelines which require small banks to list themselves within 3 years of commencement of operations.

17. ESAF Small Finance Bank
The Kerala-based ESAF Small Finance Bank has filed draft papers with SEBI for an IPO issue which would be a combination of fresh issue of Rs 800 crore and offer-for-sale of Rs 176.2 crore, after approval. The bank currently has a presence in 16 states and 1 union territory.

Route Mobile
Route Mobile has recently received SEBI’s approval to raise capital through the IPO route and likely to raise Rs 600 crore through the IPO. The IPO will comprise a fresh issue of shares worth Rs 240 crore and the remaining Rs 360 crore through stake sale of promoters.

Mukesh Trends Lifestyle Ltd
Ahemdabad–based Mukesh Trends Lifestyle, in the fabric processing business, has filed draft papers with markets regulator SEBI for its proposed initial public offer. The size of the IPO is expected to be between Rs 70 crores to 90 crores, once launched.

Angel  Broking Ltd
Angel Broking Ltd which received SEBI’s approval for an IPO in June last year will come out with the IPO this year. The size of the IPO is expected to be Rs 600 crore.


2020 could be a rewarding year for investors with some of the big IPOs likely to come out this year which have the potential to give huge returns to the investors. Reach out to our experts at IndiaNivesh to help you with your IPO investments.

Disclaimer: These are only the list of IPOs that would be coming in 2020. However, whether you should invest or not should be a decision one should take on the basis of the research reports. "Investment in securities market and Mutual Funds are subject to market risks, read all the related documents carefully before investing."


Online Trading – 5 Essential Tips for Trading Online in 2020

Technological advancements and digitalisation have changed the online arena for every business, and the online share trading is no exception to the trend. Over the last few years, online trading has become very popular, especially amongst the millennials and generation Y. Prevalence of smartphones, lower costs, opportunity to earn extra income, low entry barriers, ease of access, etc has had a profound impact on online trading. Even though online stock trading today is huge, and many people are motivated to explore online trading for a rewarding career, by no figment of imagination it should be assumed that it is easy, and they can become financially self-sufficient in a short period. Here are 5 essential online trading tips to help improve your chances of success in your endeavours as a trader-1. Do the research and gain relevant information about the markets The economic conditions are constantly changing and it has a significant impact on the stock markets. To be successful in online share trading you have to do your research, collect relevant information and be updated about matters relating to markets. With information being available at the click of a button, it is easy to get access to information from various sources. Keeping your eyes and ears open about the official announcements being made, reading up market-related articles and financial publications can help you ace the game of online stock trading and avoid making whimsical trade calls.  2. Get acquainted with the trading terminologies and tools Getting yourself familiar with various terminologies and trading tools beforehand is extremely important so that you do not falter when you start trading. Clearing your basics about the important workings, different types of trades, important terms are critical. If you are not clear about the basics, then you may end up placing a wrong order. Once you are trading online, you are investing real capital and you cannot undo the trade. So, it is essential that you must be familiar with the features and the functions of the trading platform which you are going to use. Practice trading on dummy versions to get a hang of the trading interface before you can start with online trading. Once you have enough practice you will not be flustered and confused at the time of real trading. 3. Start with small capital and practice risk management There are infinite opportunities in the trading world and you do not want one experience to be the deciding factor for you. As online trading is risky, you should always make a small start in the beginning and invest little capital. Even the most successful traders do not put their entire investible surplus for trading but use only the capital which they have to spare after they have put aside for their long-term goals such as retirement. So, invest only the capital which you can afford to lose and which will not affect your financial planning. Another important thing to keep in mind at the time of executing trades is that the risk associated with trading is high and hence you should take adequate measures to minimise risk. Setting a stop-loss to your order will automatically stop a trade if the losses hit a particular mark and help minimise your losses. 4. Be patient and disciplined Online trading is a great way to make an income and many have successfully made a career out of it. If the success stories of other traders have motivated you to take the plunge, then, let’s be honest, online trading is risky and not for the light-hearted. Moreover, it is not something you can master overnight or become rich overnight on a single trade. To be successful, you need to have the right mindset and should be disciplined in your approach. Make a trade plan and stick to it. Trading out of impulse or greed will not help you become successful but following a plan and trading when you see opportunities can help you achieve the desired results. 5. Select the right broker and trading platform Last but not least, choosing the right broker and opening the best trading account online is important, and hence you should be careful about your selection. Choose a trading platform that best meets your needs and has a user-friendly interface. You should be comfortable using their software. Your success rate would be greatly affected by the timely execution of your orders. Other aspects to consider are a level of customer service and satisfaction, market reputation and competitive fee structure.   Conclusion With the above essential online trading tips, you can give your income a boost. We at IndiaNivesh have one of the best online trading platforms at the most competitive price and also offer expert advisory and research to meet your investment needs.Disclaimer: "Investment in securities market and Mutual Funds are subject to market risks, read all the related documents carefully before investing."

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Tax Saving Investments - 5 Income Tax Saving Schemes Other Than Sec 80C

The taxpayers are always in search of ways through which they can save their taxes. The most popular section for saving taxes among the taxpayers is section 80C. You can claim deduction up to Rs. 1,50,000 under section 80C of the Income Tax Act, 1961 by investing in specified avenues listed by the government. However, there are many other sections under which you can save your taxes but due to lack of awareness, many people miss out on them. In this article, we will list down five income tax saving schemes other than section 80C. Tax Saving Schemes Other Than 80C National Pension System (NPS) National Pension System (NPS) is one of the popular tax saving investment schemes. Here you can invest in the NPS and get an additional tax deduction up to Rs. 50,000. This scheme was launched by the government of India in 2009. This tax saving scheme makes you eligible for an additional tax deduction for investment up to Rs 50,000 under subsection 80CCD (1B) of the Income Tax Act, 1961. The main advantage of investing in NPS is that the tax benefits under this scheme are not clubbed with the tax benefits under section 80C which allows tax benefits on investments of up to Rs. 1,50,000 lakhs only. Investment in NPS can be done by employees of the public, private and unorganized sectors. Apart from saving tax, NPS is also a good investment scheme for the long term. Health Insurance Premium The health insurance premium is another good tax saving investment option. Paying health insurance premiums can help in saving your taxes. You can claim deduction under section 80D of the Income Tax Act, 1961. The maximum exemption limit under this section is up to Rs. 1,00,000. The exemption limit is up to Rs. 25,000 for health insurance premium paid for self, spouse or dependent children. However, when the premium is paid for the health insurance of senior citizen parents, the maximum deduction limit is Rs. 50,000. Therefore, when the health insurance premium is paid for policies for self, spouse and senior citizen parents, the total deduction that can be availed is Rs. 25,000 plus Rs 50,000 i.e. Rs 75,000. A mediclaim policy is essential these days because if any of your family members fall sick or meets an accident, the cost of treatment can wipe out a large part of your savings. The deduction under this section can be claimed only when the premium is paid by any mode other than cash. Also, the central government or the Insurance Regulatory and Development Authority of India (IRDAI) must have approved the insurer. Payment Of Interest On Education Loan Education loans are one of the popular tax saving investments. The tax deduction is available to you on the interest paid on the education loan taken for self, spouse, children, or a student (whose legal guardian is you). The tax deduction on payment of interest on education loan is available under section 80E of the Income Tax Act, 1961. What makes it a good tax saving scheme is the fact that interest paid on education loan is eligible for deduction without any limit. However, to claim deduction under section 80E, you must make sure that the loan is taken for higher education i.e. for any course after the completion of the 12th standard. The deduction on interest is available for a period of eight years from the year in which the payment of interest started. Savings Account Interest Interest in the savings account is eligible for tax exemption. The tax exemption limit on the interest of the bank’s savings account is Rs. 10,000. Therefore, if the interest income from the bank’s savings account is more than Rs. 10,000 then you have to pay tax on it. However, you must remember that the interest on fixed deposits in the bank is not eligible for tax exemption. Donations Donations made to institutions or organisations that are notified by the Central Government of India are eligible for tax exemption. Such deduction is available under section 80G of the Income Tax Act, 1961. However, while availing this income tax saving scheme, the amount donated must not exceed 10 per cent of the adjusted gross total income. Under this tax saving scheme, the donation of more than Rs. 2,000 in cash in not eligible for a tax deduction. Some of the funds that are notified by the government include Swachh Bharat Kosh, Clean Ganga Fund, Prime Minister's Drought Relief Fund, Prime Minister's National Relief Fund, National Children Fund, National Defence Fund, Jawaharlal Nehru Memorial Fund, etc. In addition to the notified institutions, deduction under section 80G is also available on donations given to churches, temples and mosques for renovation purposes. Such churches, temples and mosques must be approved by the Central Government.   The above mentioned are some of the popular tax saving funds other than section 80C. It is always advisable to invest in multiple funds to avail the tax deductions. This is because there is a cap of Rs. 1,50,000 lakhs for tax deduction under section 80C. By investing in the other income tax savings schemes, you can avail the deduction of more than Rs. 1,50,000. By exploring other tax saving investment options, you can further reduce your tax liability. If you want to learn more about tax saving funds or need any financial advice, you can contact IndiaNivesh. We are one of the leading broking and financial advisory firm in India with highly qualified professionals who can help you in reducing your tax liability.Disclaimer: "Investment in securities market and Mutual Funds are subject to market risks, read all the related documents carefully before investing."

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  • IPO Process - 5 Steps for Successful Listing in India

    The last two years have proven to be very fruitful for the IPO (Initial Public Offer) market. Investors have cashed in the opportunity and made huge returns in the IPO. The journey of the company to offer its shares to the public is exciting and at the same time, it also offers an opportunity to the investors to reap the benefits of IPO. Seeing the performance of recent IPOs, the attention of investors towards it is at an all-time high and they are always on a lookout for the new opportunities to arrive. When a private company decides to go public, the initial public offering process starts. The companies go public to raise a huge amount of capital in the exchange of securities. An IPO is an important stage for the growth of any company because they have access to public capital which enhances their credibility and exposure. The initial public offering process in India is regulated by the ‘Securities and Exchange Board of India (SEBI). In this article, you will learn about 5 steps of the IPO process for a successful listing on the Indian stock exchange. IPO Process in India Step 1: Selection of an Investment Banker for Underwriting Process Before understanding the IPO process, let us understand what underwriting is. Underwriting is a process in which the shares of the companies are issued and sold during the initial public offering. During this process investment bank advices and gives suggestions to the company against a fee. The investment banker understands the financial situation of the company and accordingly suggests them plans to meet their financial needs. They sign an underwriting agreement with the company. The agreement has all the details about the deal and the amount that will be raised by issuing securities. The companies may select an investment bank after determining various factors such as the reputation of the bank, expertise in the process, quality of their equity research and experience in the sector they deal. All these factors help in selling the IPO to the investors, traders and retailers. Step 2: Due Diligence and Regulation Process After the selection of the investment banker, the company is required to make an initial registration statement as per the regulations of the SEBI. In this process, the company and the underwriters submit the SEBI its fiscal data and the future plans of the company. The company is also required to give the declaration about the usage of funds that will be raised from IPO procedure. This declaration ensures that the company has given each and every disclosure that an investor must know. The company must file various versions of the prospectus from the initial stage to the final stage with the investors. The prospectus consists of the company’s details like valuation of the company, risk and rewards of the investment along with other details. This IPO process ends with the filing of the above-mentioned documents. Step 3: Pricing The final price of the Initial Public Offering is determined by the investors. The investment bank markets the IPO. To attract the public to the IPO application process, they are priced at a discount. By issuing shares at discount, the share performs well when they are listed on the stock exchanges. The price of the stock during IPO procedure can be a fixed price with the price mentioned in the order document. On the other hand, a book building issue will have a price band within the bids that can be made by the investor. Step 4: Stock Listing and Price Stabilization When the shares of the company are listed on the stock exchange and trading begins, the investment bank takes measures to establish the price of the securities. When there are not enough buyers, the bank will purchase the shares. The role of the investment bank in stabilizing the share price is essential. However, one must remember that such buying would last only for a short period of time because the IPO process already consumes a huge amount of capital investment. Step 5: Transition to Market Competition When the company's transition period to the normal competitive environment is over, the company is required to make disclosures like its financial results, significant news, etc. that is material in nature and can affect the price of the shares. The role of the investment bank is still significant. It can continue as an advisor to the company and assist in increasing the price of the shares over a period of time.   Conclusion The above mentioned are the IPO process steps for a successful listing. An IPO can change the fortunes of the company and it can grow at a rapid pace. Apart from the company, investors can also reap the benefits of an IPO by investing in them. Since there are many risks and uncertainties associated with a company going public, good research before investment can be fruitful. The investors can compare the company with its peers and check its fundamentals before investing. An investor must also consider his risk appetite and availability of funds before investing money in the IPOs. If you are an investor and need any assistance regarding investing in the stock market, you can contact IndiaNivesh.Disclaimer: "Investment in securities market and Mutual Funds are subject to market risks, read all the related documents carefully before investing."

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  • IPO Allotment Status – All you need to know about IPO Allotment Process

    Initial Public Offerings have been in existence for a long time. But recently they have come under a lot of limelight. In the July-September period of last year, funds to the tune of USD 0.86 billion were raised from just 10 IPOs. And as per an EY report, IPOs are expected to gain more momentum in 2020. IPOs or Initial Public Offer are the buzzwords these days. Especially after the successful ones like IRCTC and Ujjivan Bank. Indian stock exchanges (BSE & NSE) ranked 6th worldwide in the highest number of IPOs in Quarter 3 of 2019. Read on to understand the IPO Allotment process in detail. Important aspects of bidding in an IPO Before we move to the allotment, we should know some important basics about IPO bidding. These days, most IPOs take the book building route. Some important terms to be aware of: Price Band Each IPO involves a price band. It is a price range within which applicants can make their IPO bids. The upper limit (or maximum price) is s the cap price. The lower limit of the price band is the floor price. The final issues price (known as the cut-off price) is decided based on the bids received.   Lots The total shares (on offer in the IPO) are divided into small lots. Each applicant needs to bid in these lots and not for individual shares. For instance, if a company intends to issue 1 lakh shares and the lot size is 20 shares per lot. Hence, the total number of lots on offer is 5,000. As per the SEBI guidelines, applicants cannot bid for shares quantity which is lower than the lot size. Also, bidding for lots in decimals (such as 1.5 lots) is not permitted. It is important to note that the lot size is applicable only at the stage of IPO allotment. Post listing, investors can trade their shares in the market in whatever quantity they want. ASBA ASBA stands for Application Supported by Blocked Amount. This facility lets you bid in IPOs without paying any money upfront. The amount remains blocked in the bank account and is deducted only after the allotment. IPO Allotment process Share allotment in an IPO needs to be done as per the SEBI guidelines. With the changes introduced by the regulator in 2012, all RII (Retail Institutional Investors) applications need to be treated equally. Some important points about IPO Allotment process: Only bids which are equal to or higher than the issue price qualify for allotment. Retail applicants (with qualified bids) need to be allotted the minimum application size, subject to stock availability in the aggregate. Apart from retail investors, there are two other types of investors in an IPO – QIB (Qualified Institutional Buyers) and NII (Non-Institutional Investors). Allotment to them is done on a proportionate basis. Post submission of all the bids, a computerised application is used to eliminate all invalid bids. This helps to identify the number of successful bids. There can be two situations –Under subscription (number of applications received is lesser than the total lot of shares offered) and Oversubscription (number of applications received is higher than the total lot of shares on offer). Allotment Rules for over and under subscription In case of an under subscription, every investor gets full allotment, regardless of the application size. For retail investors, in case of an IPO oversubscription, the max number of retail applicants eligible for allotment of the minimum bid lot is determined by using this formula – Total no. of shares available for RII (Retail Individual Investors) divided by Minimum Bid Lot. If the IPO is oversubscribed by a huge margin, the final allotment is done through a computerised lottery method. This would mean that some applicants will not get any allotment. If the oversubscription is not by a huge margin, then all applicants will get the minimum bid lot and the balance is proportionality allotted to applicants who had bid for multiple lots.   IPO Allotment Status IPO Allotment Status of each applicant gives the details regarding the number of shares applied for and final allocation in the IPO. The IPO status details are available online on the website of the registrar. Each IPO has a specific registrar such as Karvy, Linkintime, etc. Applicants can check their IPO allotment status by providing details such as PAN, IPO application number, etc. IPO Allotment Status Online is available within one week of the IPO closing date. The entire allocation process takes almost 10 business days. In the case of non-allotment within that period, the amount paid by the applicant is refunded back. The registrar also publishes an allotment document which has all the details regarding the IPO allotment such as the total number of applications received, IPO allotment calculations, etc.   Why were shares not allotted to you in the IPO? There can be three reasons for this. Invalid Bid Bids in an IPO can be rejected or considered invalid for numerous reasons. Some of these are invalid Demat or PAN details, incomplete information, multiple applications by the same person, etc.   Over Subscription Oversubscription means that the demand for the company’s shares exceeds the number of shares issued. In case of a hugely oversubscribed IPO, the shares are allotted based on a lottery. The rationale being that every applicant has an equal chance. If your name does not come up in the lucky draw, you will not be allotted the shares.   Bid Price is below the issue price IPOs following the book building route requires applicants to bid for lots as well as the price they are willing to pay. If the bid price you have submitted is less than the final issue price, you will not get any IPO allotments.   If you want to stay on top of the IPO game, a financial expert can be of great help. A partner like IndiaNivesh, who has more than 11 years of experience in the Indian markets, can keep you informed about all the upcoming IPOs and help you make the most of it.  Disclaimer: "Investment in securities market and Mutual Funds are subject to market risks, read all the related documents carefully before investing."

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  • Tax Saving FD – Know About Tax Saving Fixed Deposit

    Every salaried individual as well as a business person is required to pay taxes as per the income tax laws. While paying taxes, we all aim to legally save it in some way or the other. But how do we do that? It is the most confusing question for most of the taxpayers. One of the excellent ways of saving taxes is by investing in tax-saving investment schemes. They not only help you save taxes but are also instrumental in effectively achieving your financial goals. There are many investment avenues available in the market that either offer tax exemption or tax deduction. Having said that, selecting the most suitable and right tax-saving investments may not come easy for everyone. While choosing the right scheme, one needs to access several factors such as safety, returns and liquidity, among other things. A very popular tax-saving investment option among taxpayers is investments under section 80C. As per section 80C of the Income Tax Act, 1961, investments of up to Rs. 1.5 lakhs can be claimed as a deduction. Tax saving fixed deposit is a type of fixed deposit where you can get a deduction of maximum Rs. 1.5 lakhs under section 80C. To arrive at the net taxable income, the amount invested in tax saving FD is to be deducted from gross total income. Let us learn about some of the important points that you must consider before investing in tax saving FD. Things to Know About Tax Saving Fixed Deposit Investment in tax saving FD can be done by individuals and Hindu Undivided Family (HUF) only. The minimum amount for fixed deposits varies from bank to bank. Income tax saving FD has a lock-in period of 5 years. You cannot make premature withdrawals and loans against these FDs. Investment in these FDs can be made only through private or public sector banks. Rural and co-operative banks are not eligible for these FDs. Tax-saving fixed deposits can be held in ‘singly' or 'jointly'. When the holding is in joint mode, the tax benefit is available to the first holder. Tax saving FD interest rates vary from bank to bank. The interest rate ranges from 5.5% – 7.75%. However, note that some banks offer higher rates on FDs to the senior citizens. These fixed deposits have nomination facilities. The interest earned on the income tax saving FD is taxable according to the investor’s tax bracket. The interest on tax saving FD is payable on a monthly or quarterly basis. The main advantage of investing in tax saving fixed deposits is that they are less risky in comparison to equities. Since many banks offer this type of FD, let us learn about its details. Banks and Income Tax Saving FDs SBI Tax Saving FD Tax saving FD interest rates of SBI is 6.25% for general customers and 6.75% for senior citizens. The maximum deposit in a year is Rs. 1 lakh and the minimum deposit is Rs. 1,000. By using a tax saving FD calculator you can know the amount receivable after the lock-in period of 5 years depending on the maturity period of your FD.   HDFC Bank Tax Saving FD Tax saving FD in the HDFC Bank can be opened with a minimum amount of Rs. 100. The maturity period of this FD is 10 years. Tax saving FD interest rates is 6.30%. Senior citizens get an added benefit of 50 basis points over general customers.   ICICI Bank Tax Saving FD The interest rate on tax saving fixed deposits at the ICICI Bank to the general customers is 6.6% and for senior citizens, the interest rate is 7.10%. These rates are applicable to FDs having a maturity period of 5 to 10 years. The maximum amount that can be deposited is Rs. 1.5 lakhs and the minimum amount for opening tax saving FD at the ICICI Bank is Rs. 10,000.   PNB Tax Saving FD Punjab National Bank offers an interest rate of 6.30% on a five-year tax saving FD. The minimum amount for opening tax saving FD at the PNB Bank is Rs. 5,000.   Bank of Baroda Tax Saving FD Bank of Baroda offers an interest rate of 6.30% on a five-year tax saving FD.   The Bottom Line The above mentioned are the basic details about the major banks that offer income tax saving FDs. You may access each individual option carefully and select the suitable one after doing good research. You can find all the basic information on the bank’s website. If you want to find out the returns that you will be earning from the fixed deposit, you can access the tax saving FD calculator and find out the returns by entering your fixed deposit details. If you want to learn more about income tax saving FD or want to learn about other investment options, you can contact IndiaNivesh. We are among one of the most trusted and value-enhancing financial groups in India.Disclaimer: "Investment in securities market and Mutual Funds are subject to market risks, read all the related documents carefully before investing."

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