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:
| Tenors | Revised For Public w.e.f. 30.07.2018 | Revised for Senior Citizens w.e.f. 30.07.2018 |
|---|---|---|
| 7 days to 45 days | 5.75 | 6.25 |
| 46 days to 179 days | 6.25 | 6.75 |
| 180 days to 210 days | 6.35 | 6.85 |
| 211 days to less than 1 year | 6.4 | 6.9 |
| 1 year to less than 2 year | 6.7 | 7.2 |
| 2 years to less than 3 years | 6.75 | 7.25 |
| 3 years to less than 5 years | 6.8 | 7.3 |
| 5 years and up to 10 years | 6.85 | 7.35 |
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:
| Period | < 1 Crore | |
|---|---|---|
| Interest Rate (per annum) | Senior Citizen Rates (per annum) | |
| 7 - 14 days | 3.50% | 4.00% |
| 15 - 29 days | 4.25% | 4.75% |
| 30 - 45 days | 5.75% | 6.25% |
| 46 - 60 days | 6.25% | 6.75% |
| 61 - 90 days | 6.25% | 6.75% |
| 91 days - 6 months | 6.25% | 6.75% |
| 6 mnths 1 day- 6 mnths 3 days | 6.75% | 7.25% |
| 6 mnths 4 days | 6.75% | 7.25% |
| 6 mnths 5 days- 9 mnths | 6.75% | 7.25% |
| 9 mnths 1 day- 9 mnths 3 days | 7.00% | 7.50% |
| 9 mnths 4 days | 7.00% | 7.50% |
| 9 months 5 days - 9 months 15 days | 7.00% | 7.50% |
| 9 months 16 days | 7.00% | 7.50% |
| 9 months 17 days < 1 Year | 7.00% | 7.50% |
| 1 Year | 7.25% | 7.75% |
| 1 year 1 day - 1 year 3 days | 7.25% | 7.75% |
| 1 year 4 days | 7.25% | 7.75% |
| 1 year 5 days - 1 Year 15 Days | 7.25% | 7.75% |
| 1 Year 16 days | 7.25% | 7.75% |
| 1 year 17 days - 2 Years | 7.25% | 7.75% |
| 2 years 1day - 2 Years 15 days | 7.10% | 7.60% |
| 2 Years 16 days | 7.10% | 7.60% |
| 2 years 17 days - 3 Years | 7.10% | 7.60% |
| 3 years 1 day - 5 years | 7.10% | 7.60% |
| 5 Years 1 Day - 8 Years | 6.00% | 6.50% |
| 8 Years 1 Day - 10 Years | 6.00% | 6.50% |
ICICI Bank
The following FD interest rates are for deposits below Rs 1 crore, according to the bank's website - icicibank.com:
| Tenure Period | Rate of Interest (% p.a.) w.e.f August 14, 2018 | |
|---|---|---|
| General | Senior Citizen* | |
| 7 days to 14 days | 4 | 4.5 |
| 15 days to 29 days | 4.25 | 4.75 |
| 30 days to 45 days | 5.5 | 6 |
| 46 days to 60 days | 5.75 | 6.25 |
| 61 days to 90 days | 6 | 6.5 |
| 91 days to 120 days | 6 | 6.5 |
| 121 days to 184 days | 6 | 6.5 |
| 185 days to 289 days | 6.5 | 7 |
| 290 days to less than 1 year | 6.75 | 7.25 |
| 1 year to 389 days | 6.75 | 7.25 |
| 390 days to 2 years | 7 | 7.5 |
| 2 years 1 day upto 5 years | 7.25 | 7.75 |
| 5 years 1 day upto 10 years | 7 | 7.5 |
| 5 Years Tax saver FD(Max upto Rs. 1.50 lac) | 7.25 | 7.75 |
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:
| RESIDENT FIXED DEPOSIT INTEREST RATES (% p.a)** | ||||
|---|---|---|---|---|
| Period | Rates for < 1 Crore w.e.f 5th June 2018 | |||
| Regular | Senior Citizen*** | |||
| Interest Rates | Interest Rates | |||
| 7 to 45 days | 5.00% | 5.50% | ||
| 46 to 90 days | 7.00% | 7.50% | ||
| 3 months to < 6 months | 6.90% | 7.40% | ||
| 6 months to < 9 months | 6.70% | 7.20% | ||
| 9 months to < 1 Year | 6.70% | 7.20% | ||
| 1 Years to <= 10 years* | 7.10% | 7.60% | ||
| *Special Rates | ||||
| 12 Months 10 Days to 12 Months 20 Days | 7.40% | 7.90% | ||
| 18 Months 8 Days to 18 Months 18 Days | 7.50% | 8.00% | ||
| 36 Months 10 Days to 36 Months 20 Days | 7.25% | 7.75% | ||
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.
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