Bank fixed deposits or FDs are fixed-income instruments which guarantee a fixed rate of return on investments. Bank fixed deposits should not be confused with corporate fixed deposits, the returns on which depend on a company's performance. Leading banks like State Bank of India (SBI), HDFC Bank, ICICI Bank, and Yes Bank offer the facility of opening a fixed deposit. These days bank fixed deposits can be created online. Thus, it is convenient for customers to create fixed deposits.
Bank fixed deposits or FDs are fixed-income instruments which guarantee a fixed rate of return on investments. Bank fixed deposits should not be confused with corporate fixed deposits, the returns on which depend on a company's performance. Leading banks like State Bank of India (SBI), HDFC Bank, ICICI Bank, and Yes Bank offer the facility of opening a fixed deposit. These days bank fixed deposits can be created online. Thus, it is convenient for customers to create fixed deposits.
How are FD interest rates determined?
Fixed deposit interest rates vary across banks according to the tenor of a fixed deposit. Most banks offer fixed deposits starting from seven days up to a tenor of 10 years.
Fixed deposit interest rates are subject to change from time to time.
How to get an interest payout on fixed deposit investments?
You can opt for a monthly, quarterly and annual interest payout. You can also keep the entire amount as well as the interest income fixed to receive the proceeds on your FD investment at the time of maturity.
How to calculate FD interest?
Before creating an FD, you can always check the amount of interest that will accrue on your FD investment. Most banks offer this facility on their websites.
FD interest rates offered by SBI, HDFC Bank, ICICI Bank, Yes Bank:
State Bank of India
The following FD interest rates are applicable on deposits below Rs. 1 crore, according to the bank's website - sbi.co.in:
HDFC Bank
The following FD interest rates are for deposits below Rs 1 crore with effect from October 6, according to the bank's website - hdfcbank.com:
ICICI Bank
The following FD interest rates are for deposits below Rs 1 crore, according to the bank's website - icicibank.com:
Yes Bank
The following FD interest rates are applicable on deposits below Rs 1 crore with effect from June 5, 2018, according to yesbank.in:
Is FD interest taxable?
The interest income earned on bank fixed deposits is fully taxable. If the interest amount exceeds Rs. 10,000, the bank would deduct tax at source (TDS) at the rate of 10 per cent per annum.
However, fixed deposits with a maturity period of five years or 10 years offer income tax benefits under Section 80 C of the Income Tax Act, 1961.
Sign Up with Google
RECOMMENDED FOR YOU
POPULAR