Fixed Deposit (FD) Interest Rates: SBI Vs PNB VS ICICI Bank Vs HDFC Bank

Fixed deposits or FDs are secure financial instruments, which offer guaranteed returns. FD interest rates vary according to the tenure of the fixed deposit and across banks. In a fixed deposit account, money is deposited for a specific time, which varies from 7 days to ten years. Some fixed deposits come with a premature withdrawal facility while some require a compulsory lock-in period. Fixed deposit interest rates are also higher than those offered by savings accounts. Savings accounts offer around 3.5 per cent of interest rate. Fixed deposits, however, offer much higher interest rates than savings accounts.

Fixed deposits or FDs are secure financial instruments, which offer guaranteed returns. FD interest rates vary according to the tenure of the fixed deposit and across banks. In a fixed deposit account, money is deposited for a specific time, which varies from 7 days to ten years. Some fixed deposits come with a premature withdrawal facility while some require a compulsory lock-in period. Fixed deposit interest rates are also higher than those offered by savings accounts. Savings accounts offer around 3.5 per cent of interest rate. Fixed deposits, however, offer much higher interest rates than savings accounts.

Here is a comparison of fixed deposit (FD) rates offered by State Bank of India (SBI), Punjab National Bank (PNB), ICICI Bank and HDFC Bank:

Fixed deposit (FD) rates offered by State Bank of India (Below Rs. 1 crore):

Fixed deposit (FD) rates offered by Punjab National Bank (PNB)

Fixed deposit (FD) rates offered by ICICI Bank (Less than Rs. 1 crore):

Fixed deposit (FD) rates offered by HDFC Bank (Less than Rs. 1 crore):

The fixed deposit 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. However, income earned on fixed deposits that is taxable. Fixed deposit interest is tax-free until a certain threshold, after which it is chargeable. After the interest earned exceeds Rs. 10,000, tax is deducted at source. TDS or tax deducted at source is deducted even if the fixed deposit amount has not yet been paid to the customer.