Fixed deposits (FDs) are secure investment instruments that offer higher interest rates than deposits in savings accounts. Unlike stocks and mutual funds, fixed deposits offer safe returns as they are unaffected by market volatility, experts say. FDs are of two types: with premature withdrawal facility and without premature without facility. The fixed deposits which offer premature withdrawal facility do not offer income tax benefits. On the other hand, FDs without a premature withdrawal facility offer income tax benefits but require a lock-in period of five or ten years. FD accounts can be started for a specific period, which can be as short as seven days.
Fixed deposit interest rates are subject to change from time to time. Private sector lender ICICI Bank revised its fixed deposit interest rates with effect from Monday.
Here's a comparison of fixed deposit (FD) interest rates paid by State Bank of India (SBI), Punjab National Bank (PNB), HDFC Bank and ICICI Bank:
State Bank of India
The following FD interest rates are applicable on deposits below Rs. 2 crore with effect from May 9, 2019, according to sbi.co.in:
| Period | General public (% p.a.) | Senior citizens (% p.a.) |
|---|---|---|
| 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 | 7 | 7.5 |
| 2 years to less than 3 years | 6.75 | 7.25 |
| 3 years to less than 5 years | 6.7 | 7.2 |
| 5 years and up to 10 years | 6.6 | 7.1 |
Punjab National Bank
The following FD interest rates are applicable on deposits up to Rs. 2 crore with effect from May 1, 2019, according to pnbindia.in:
| Period | General public (% p.a.) | Senior Citizen (% p.a.) |
|---|---|---|
| 7 to 14 days | 5.75 | 6.25 |
| 15 to 29 days | 5.75 | 6.25 |
| 30 to 45 days | 5.75 | 6.25 |
| 46 to 90 days | 6.35 | 6.85 |
| 91 to 179 days | 6.35 | 6.85 |
| 111 days | 6.5 | 7 |
| 180 days to 270 Days | 6.35 | 6.85 |
| 222 days | 6.6 | 7.1 |
| 271 days to less than 1 year | 6.35 | 6.85 |
| 333 days | 6.95 | 7.45 |
| 1 year | 7 | 7.5 |
| 555 days | 6.85 | 7.35 |
| above 1 year & up to 3 years | 6.75 | 7.25 |
| above 3 year & up to 5 years | 6.25 | 6.75 |
| above 5 years & up to 10 years | 6.25 | 6.75 |
HDFC Bank
The following FD interest rates are applicable on deposits below Rs. 2 crore from June 12, 2019, according to hdfcbank.com:
| Period | General Public (% p.a.) | Senior Citizen (% p.a.) |
|---|---|---|
| 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 months 1 day- 6 months 3 days | 6.75 | 7.25 |
| 6 months 4 days | 6.75 | 7.25 |
| 6 months 5 days- 9 months | 6.75 | 7.25 |
| 9 months 1 day- 9 months 3 days | 7.10 | 7.60 |
| 9 months 4 days | 7.10 | 7.60 |
| 9 months 5 days - 9 months 15 days | 7.10 | 7.60 |
| 9 months 16 days | 7.10 | 7.60 |
| 9 months 17 days < 1 Year | 7.10 | 7.60 |
| 1 year | 7.30 | 7.80 |
| 1 year 1 day - 1 year 3 days | 7.30 | 7.80 |
| 1 year 4 days | 7.30 | 7.80 |
| 1 year 5 days - 1 year 15 days | 7.30 | 7.80 |
| 1 Year 16 days | 7.30 | 7.80 |
| 1 year 17 days - 2 years | 7.30 | 7.80 |
| 2 years 1 day - 2 years 15 days | 7.40 | 7.90 |
| 2 years 16 days | 7.40 | 7.90 |
| 2 years 17 days - 3 years | 7.40 | 7.90 |
| 3 years 1 day - 5 years | 7.25 | 7.75 |
| 5 years 1 day - 8 years | 6.50 | 7.00 |
| 8 years 1 day - 10 years | 6.50 | 7.00 |
ICICI Bank
The following FD interest rates are applicable on deposits below Rs. 2 crore from June 17, 2019, according to icicibank.com:
| Period | General public (% p.a.) | Senior citizens (% p.a.) |
|---|---|---|
| 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 | 6 | 6.5 |
| 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 | 6.9 | 7.4 |
| 390 days to 2 years | 7 | 7.5 |
| 2 years 1 day up to 3 years | 7.3 | 7.8 |
| 3 years 1 day up to 5 years | 7.25 | 7.75 |
| 5 years 1 day up to 10 years | 7 | 7.5 |
| 5 Years Tax saver FD (Max up to Rs. 1.50 lac) | 7.25 | 7.75 |
Senior citizens usually get a higher rate of interest on fixed deposits compared to general public.
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