Savings and Investments

Some fixed deposits come with a premature withdrawal facility while some require a compulsory lock-in period.

Earlier this week, ICICI Bank revised its interest rates on both recurring deposits and fixed deposits.

Recently, big banks such as State Bank of India, HDFC Bank have revised their interest rates on both recurring deposits and fixed deposits.

The revision in fixed deposit interest rates have come after the Reserve Bank of India hiked the repo rate to 6.5 per cent.

HDFC Bank revised its fixed deposit or FD interest rates on select maturities with effect from today. HDFC Bank has revised FD interest rates for deposits ranging from below Rs 1 crore to less than Rs 5 crore.

Some fixed deposit accounts come with the facility of premature withdrawal while some have a compulsory lock-in period.

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

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.

SBI Zero balance account: Large banks like SBI (State Bank of India) offer modest interest rates on savings accounts, including on zero balance savings accounts. However, small finance banks like ESAF Small Finance Bank and Equitas Small Finance Bank offer interest rates up to 7 per cent on zero balance savings accounts.

State Bank of India (SBI), the largest lender of the country, has recently hiked its fixed deposit or FD interest rates across various maturities.

In a recurring deposit, a depositor usually makes small value remittances, say Rs.500 or Rs 1,000, at regular intervals. Unlike any other market-linked instrument, a recurring deposit allows the depositor to earn a pre-assured sum (with applicable tax deduction) without any investment risk after completion of the maturity period.

SBI (State Bank of India) offers zero balance savings accounts, which do not require any minimum balance. Besides, it also offers savings accounts facility across its metro, urban, semi-urban and rural branches. Minimum balance requirements and penalties across all these savings accounts vary depending on branch location.

State Bank of India, the largest lender of the country, has revised its fixed deposit (FD) interest rates with effect from today.

The interest rates on recurring deposits of large banks like State Bank of India, ICICI Bank are not as high as those offered by small finance banks.

Bank FD Interest Rates: FD accounts which have a lock-in period of five or 10 years also offer income tax benefit under Section 80C of Income Tax Act.