Is entire interest from savings bank account taxable?
Interest you earn from your saving bank account is considered as your income and added to your total income for IT calculations. The good news is that interest income on saving accounts is not taxable up to Rs 10,000. So anything over Rs. 10,000 as interest gets taxable.
Income earned from your Savings Account is taxable. However, you can avail deduction of up to Rs. 10,000 on the total Savings Account interest income earned.
You can consider putting your money in a Fixed Deposit. This will definitely earn you more than a savings account and is a very safe way of growing your money. You can choose the tenure based on when you will need the money. If you are willing to take on a little risk, you can consider Debt Mutual Funds. These will earn you a little more than Fixed Deposits and are more liquid than Fixed Deposits. Most Debt Mutual Funds do not have any entry or exit loads. It is best to check for these before you decide to invest. The best part is that Debt Mutual Funds allow you to withdraw your money at any time unlike a Fixed Deposit where there might be penalties for foreclosure.