Fixed deposit (FD), a secure investment instrument, offers higher interest rates than the deposits in savings accounts. Fixed deposits can be started for specific period, which can be as short as 7 days. The FD accounts which have a lock-in period of five or 10 years also offer income tax benefit under Section 80C of the Income Tax Act. FD interest rates of most banks are higher for senior citizens as compared to those for the general public. However, fixed deposit interest rates and tenors vary according to different lenders.
Fixed deposit (FD), a secure investment instrument, offers higher interest rates than the deposits in savings accounts. Fixed deposits can be started for specific period, which can be as short as 7 days. The FD accounts which have a lock-in period of five or 10 years also offer income tax benefit under Section 80C of the Income Tax Act. FD interest rates of most banks are higher for senior citizens as compared to those for the general public. However, fixed deposit interest rates and tenors vary according to different lenders.
Fixed deposit (FD), a secure investment instrument, offers higher interest rates than the deposits in savings accounts. Fixed deposits can be started for specific period, which can be as short as 7 days. The FD accounts which have a lock-in period of five or 10 years also offer income tax benefit under Section 80C of the Income Tax Act. FD interest rates of most banks are higher for senior citizens as compared to those for the general public. However, fixed deposit interest rates and tenors vary according to different lenders.
Banks keep on revising their fixed deposit interest rates from time-to-time. Currently, on a three-year fixed deposit below Rs 1 crore, SBI pays an interest rate of 6.8 per cent. As compared to this, HDFC Bank offers 7.10 per cent and ICICI Bank pays 7.25 per cent on fixed deposits of the same tenor and amount.
Given below is a comparison of Fixed Deposit (FD) interest rates offered by SBI, ICICI Bank, HDFC Bank and Axis Bank on deposits below Rs 1 crore:
State Bank of India (SBI)
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 applicable on deposits below Rs 1 crore, according to the bank's website - icicibank.com:
Axis Bank
The following FD interest rates are applicable on deposits below Rs 1 crore, according to the bank's website - axisbank.com:
However, fixed deposits of small finance banks offer higher interest rates than larger peers like State Bank of India (SBI), HDFC Bank and ICICI Bank.
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