FD Interest Rates: State Bank of India Vs ICICI Bank Vs HDFC Bank Vs PNB

Fixed Deposit (FD) Interest Rates:Here are the rates of interest that an investment of less than Rs. 1 crore will fetch from State Bank of India (SBI), ICICI Bank and Punjab National Bank (PNB).

FD Interest Rates: State Bank of India Vs ICICI Bank Vs HDFC Bank Vs PNB

Interest rates on fixed deposits (FDs) are assured unlike in case of other investment options.

Fixed deposits or FDs are quite popular as a saving instrument among investors. At the time of making an FD, the maturity amount is already known and this helps plan the finances better. It also offers liquidity as compared to other market-linked instruments. In case of an emergency, one can prematurely withdraw the entire or partial amount prior to the maturity date. FDs not only help one save money but also offer income tax deduction (on long term FDs). FDs are quite popular particularly because they offer an assured rate of interest as compared to other investment options such as stocks, mutual funds, bonds etc, whose returns depend on market volatility, say experts.

FD customers also get an option to choose the tenor of the investment horizon from a short-term period of seven days up to 10 years and it comes with different interest rate options.

"Surplus funds if parked in a savings account may end up getting consumed. FDs, due to their fixed investment horizon, can help one inculcate savings behaviour," said Ambuj Chandna, Sr. EVP & Head - Retail Liabilities, Investment & Payment Products, Kotak Mahindra Bank.

FDs are of two types: some are normal ones while others act as tax-saving instruments. However, income tax has to be paid on interest income accrued on both types of FDs.

FDs which help save on income tax have a minimum lock-in period of five years. In these saving instruments, no premature withdrawals or loans are allowed. Investment in income-tax saving bank fixed deposits or FDs can help you claim deductions for investments up to Rs. 1.5 lakh a year under Section 80C of the Income Tax Act.

However, regular FDs come with a facility of premature withdrawal and give an option to the investor to withdraw the money in times of need.

A fixed deposit with monthly or quarterly interest pay-out option can generate monthly/ quarterly cash flow for a customer without impacting the principal invested, said Mr Chandna. Alternatively, for someone who is not looking at FDs for regular cash flows, the cumulative option, where the interest gets added to the principal on a quarterly basis, is also available, he added. Here, the interest is paid at the end of the tenure.

If you decide to invest your money in FDs, here are the rates of interest that an investment of less than Rs. 1 crore will fetch from State Bank of India (SBI), ICICI Bank, HDFC Bank and Punjab National Bank (PNB):

 State Bank of India (SBI) FD Interest Rates:

Revision in Interest Rates On Retail Domestic Term Deposits (Below Rupees One Crore) w.e.f. 01.11.2017

Accordingly, the interest rates for retail domestic term deposits 'Below Rupees One Crore 'have been revised.

The revised interest rates of SBI are as under:

(All figures in % per annum)  
TenorsRevised For Public w.e.f. 01.11.2017Revised for Senior Citizens w.e.f. 01.11.2017
7 days to 45 days
5.25
5.75
46 days to 179 days
6.25
6.75
180 days to 210 days
6.25
6.75
211 days to less than 1 year
6.25
6.75
1 year
6.25
6.75
Above 1 year to 455 days
6.25
6.75
456 days to less than 2 years
6.25
6.75
2 years to less than 3 years
6
6.5
3 years to less than 5 years
6
6.5
5 years and up to 10 years
6
6.5

ICICI Bank FD Interest Rates:
Interest rates on Domestic, NRO & NRE deposits(Less than ₹ 1 crore)

 
Tenure PeriodRate of Interest (% p.a.) w.e.f December 11, 2017
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 days6.256.75
290 days to less than 1 year6.57
1 year to 389 days6.67.1
390 days to 2 years6.757.25
2 years 1 day upto 5 years6.57
5 years 1 day upto 10 years6.57
5 Years Tax saver FD(Max upto Rs. 1.50 lac)6.57

 

HDFC Bank FD Interest Rates:
Domestic / NRO / NRE Term Deposits

 
Period< 1 Crore
Interest Rate **Senior Citizen Rates 
(per annum)(per annum)
7 - 14 days3.50%4.00%
15 - 29 days4.25%4.75%
30 - 45 days5.50%6.00%
46 - 60 days5.75%6.25%
61 - 90 days5.75%6.25%
91 days - 6 months5.75%6.25%
6 mnths 1 day- 6 mnths 3 days6.00%6.50%
6 mnths 4 days6.00%6.50%
6 mnths 5 days- 9 mnths6.00%6.50%
9 mnths 1 day- 9 mnths 3 days6.00%6.50%
9 mnths 4 days6.00%6.50%
9 months 5 days - 9 months 15 days6.00%6.50%
9 months 16 days6.25%6.75%
9 months 17 days < 1 Year6.25%6.75%
1 Year6.75%7.25%
1 year 1 day - 1 year 3 days6.75%7.25%
1 year 4 days6.25%6.75%
1 year 5 days - 1 Year 15 Days6.25%6.75%
1 Year 16 days6.25%6.75%
1 year 17 days - 2 Years6.25%6.75%
2 years 1day - 2 Years 15 days6.00%6.50%
2 Years 16 days6.00%6.50%
2 years 17 days - 3 Years6.00%6.50%
3 years 1day - 5 years6.00%6.50%
5 Years 1 Day - 8 Years6.00%6.50%
8 Years 1 Day - 10 Years6.00%6.50%

Punjab National Bank FD Interest Rates:
The public sector bank recently announced raising of interest rates by up to 1.25 per cent on domestic term deposits of up to Rs. 10 crore for different tenures, effective January 1, 2018. For domestic retail term deposits of less than Rs. 1 crore, the rate has been increased by 1.25 per cent to 5.25 per cent from 4 per cent in the maturity tenure of 7 to 29 days.
 
  Domestic TD Less Than Rs.1 Cr.
W.E.F. 01.01.2018
Sl. NoPeriodROI (% p.a.)A.Y.**For Senior Citizen ROI (% p.a.)
17 to 14 days5.255.255.75
215 to 29days5.255.255.75
330 to 45 days5.255.255.75
446 to 90 days6.256.256.75
591 to 179 days6.256.256.75
6180 days to 270 Days6.256.36.75
7271 days to less than 1 year6.256.356.75
81 year6.66.777.1
9above 1 year & upto 3 years6.56.667
10above 3 year & upto 5 years6.256.826.75
11above 5 years & upto 10 years6.257.276.75
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