Bank fixed deposits (FDs) are fixed-income instruments with a guaranteed rate of return on investments. Investing in a fixed deposit is secure because the returns are fixed across predetermined, specific periods of time. Some fixed deposits also offer the benefit of income tax deduction. However, bank fixed deposits which come with a premature withdrawal facility do not offer income tax deduction benefits. Fixed deposit accounts which do not offer a premature withdrawal facility offer this benefit but have a lock-in period.
Bank fixed deposits (FDs) are fixed-income instruments with a guaranteed rate of return on investments. Investing in a fixed deposit is secure because the returns are fixed across predetermined, specific periods of time. Some fixed deposits also offer the benefit of income tax deduction. However, bank fixed deposits which come with a premature withdrawal facility do not offer income tax deduction benefits. Fixed deposit accounts which do not offer a premature withdrawal facility offer this benefit but have a lock-in period.
Top lenders like State Bank of India (SBI), ICICI Bank and HDFC Bank offer the option of creating a fixed deposit account. Interest rates on fixed deposits vary according to separate maturity baskets across different banks
Given below are interest rates offered by SBI, ICICI Bank, HDFC Bank, Bank of Baroda and Canara Bank on fixed deposits up to 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:
ICICI Bank
The following FD interest rates are applicable on deposits below Rs 1 crore, according to the bank's website - icicibank.com:
HDFC Bank
The following FD interest rates are applicable on deposits below Rs. 1 crore from November 6, 2018, according to the bank's website - hdfcbank.com:
Bank of Baroda
The following FD interest rates are applicable on deposits below Rs 1 crore, according to bank's website- bankofbaroda.com:
An additional interest of 0.50 per cent is applicable on fixed deposits for senior citizens for all tenors, stated the bank.
Canara Bank
The following FD interest rates are applicable on deposits below Rs 1 crore, according to Canara bank's website - canarabank.com:
Small finance banks, meanwhile, offer rates of interest that are higher than the mainstream banks.
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