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Here's Everything You Want To Know About Bank Fixed Deposits (FDs)

Banks like State Bank of India (SBI), HDFC Bank, ICICI Bank, and Yes Bank offer the facility of opening a fixed deposit. FDs can be created online.

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Here's Everything You Want To Know About Bank Fixed Deposits (FDs)

Bank fixed deposits or FDs are fixed-income instruments with fixed rate of return.


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:

TenorsRevised For Public w.e.f. 30.07.2018Revised for Senior Citizens w.e.f. 30.07.2018
7 days to 45 days5.756.25
46 days to 179 days6.256.75
180 days to 210 days6.356.85
211 days to less than 1 year6.46.9
1 year to less than 2 year6.77.2
2 years to less than 3 years6.757.25
3 years to less than 5 years6.87.3
5 years and up to 10 years6.857.35

 

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 days3.50%4.00%
15 - 29 days4.25%4.75%
30 - 45 days5.75%6.25%
46 - 60 days6.25%6.75%
61 - 90 days6.25%6.75%
91 days - 6 months6.25%6.75%
6 mnths 1 day- 6 mnths 3 days6.75%7.25%
6 mnths 4 days6.75%7.25%
6 mnths 5 days- 9 mnths6.75%7.25%
9 mnths 1 day- 9 mnths 3 days7.00%7.50%
9 mnths 4 days7.00%7.50%
9 months 5 days - 9 months 15 days7.00%7.50%
9 months 16 days7.00%7.50%
9 months 17 days < 1 Year7.00%7.50%
1 Year7.25%7.75%
1 year 1 day - 1 year 3 days7.25%7.75%
1 year 4 days7.25%7.75%
1 year 5 days - 1 Year 15 Days7.25%7.75%
1 Year 16 days7.25%7.75%
1 year 17 days - 2 Years7.25%7.75%
2 years 1day - 2 Years 15 days7.10%7.60%
2 Years 16 days7.10%7.60%
2 years 17 days - 3 Years7.10%7.60%
3 years 1 day - 5 years7.10%7.60%
5 Years 1 Day - 8 Years6.00%6.50%
8 Years 1 Day - 10 Years6.00%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 PeriodRate of Interest (% p.a.) w.e.f August 14, 2018
 GeneralSenior Citizen*
7 days to 14 days44.5
15 days to 29 days4.254.75
30 days to 45 days5.56
46 days to 60 days5.756.25
61 days to 90 days66.5
91 days to 120 days66.5
121 days to 184 days66.5
185 days to 289 days6.57
290 days to less than 1 year6.757.25
1 year to 389 days6.757.25
390 days to 2 years77.5
2 years 1 day upto 5 years7.257.75
5 years 1 day upto 10 years77.5
5 Years Tax saver FD(Max upto Rs. 1.50 lac)7.257.75

 

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)**
PeriodRates for < 1 Crore w.e.f 5th June 2018
RegularSenior Citizen***
Interest RatesInterest Rates
7 to 45 days5.00%5.50%
46 to 90 days7.00%7.50%
3 months to < 6 months6.90%7.40%
6 months to < 9 months6.70%7.20%
9 months to < 1 Year6.70%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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