Fixed deposit interest rates are fixed over specific tenures.Fixed deposits or term deposits offered by banks are popular among customers because of the simple reason that they fetch higher interest rates than other savings schemes.
Another reason for the popularity of bank fixed deposits is the convenience with which they can be created.
Banks offer online options to create fixed deposits.
So these days creation of a bank fixed deposit does not even require the customer to physically visit a bank.
Also fixed deposit interest rates are fixed over specific tenures.
Thus, your income on fixed deposits is guaranteed even in volatile times.Besides, fixed deposit interest rates are higher than savings accounts'.
Normal savings accounts offer interest rates between 3-4 per cent usually.
Fixed deposits, however, offer much higher interest rates than savings accounts.However, income earned of fixed deposits that is, the interest accrued on fixed deposits, is taxable.
Fixed deposit interest is tax-free until a certain threshold, after which it is charged as per the current guidelines of the Income Tax Act.
After the interest earned exceeds Rs 10,000, tax is deducted at source.
TDS or tax deducted at source is deducted even if the fixed deposit amount has not yet been paid to the customer.A few exemptions are granted as per Section 80C of the Act but in that case, fixed deposit needs to be locked-in for a period of five or 10 years.Given below are fixed deposit interest rates offered by State Bank of India (SBI), HDFC Bank, ICICI Bank, and Bank of Baroda (BoB):Fixed deposit interest rates of State Bank of India (SBI) (Below Rs 1 crore)The following fixed deposit interest rates came into effect on May 28, said SBI.TenorsInterest rate (in per cent) for public w.e.f.
28.05.2018Interest rate for senior citizens w.e.f.
28.05.20187 days to 45 days5.756.2546 days to 179 days6.256.75180 days to 210 days6.356.85211 days to less than 1 year6.46.91 year to less than 2 year6.657.152 years to less than 3 years6.657.153 years to less than 5 years6.77.25 years and up to 10 years6.757.25(Source: sbi.co.in)Fixed Deposit interest rates of HDFC BankDomestic / NRO / NRE Fixed DepositsThe following fixed deposit interest rates are applicable from July 6, 2018:Rate of Interest (% p.a.) w.e.f July 6, 2018TenureInterest rate for general publicInterest rate for senior citizen7 - 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 months 1 day- 6 months 3 days6.35%6.85%6 months 4 days6.35%6.85%6 months 5 days- 9 months6.40%6.90%9 months 1 day- 9 months 3 days6.40%6.90%9 months 4 days6.40%6.90%9 months 5 days - 9 months 15 days6.40%6.90%9 months 16 days6.40%6.90%9 months 17 days < 1 Year6.40%6.90%1 Year6.85%7.35%1 year 1 day - 1 year 3 days6.65%7.15%1 year 4 days6.65%7.15%1 year 5 days - 1 Year 15 Days6.65%7.15%1 Year 16 days6.65%7.15%1 year 17 days - 2 Years7.00%7.50%2 years 1day - 2 Years15 days7.00%7.50%2 Years16 days7.00%7.50%2 years17 days - 3 Years7.00%7.50%3 years 1day - 5 years7.00%7.50%5 Years 1 Day - 8 Years6.00%6.50%8 Years 1 Day - 10 Years6.00%6.50%(Source: hdfcbank.com)(: Fixed Deposit Interest Rates Of This Bank Are Better Than SBI's)Fixed deposit interest rates of ICICI BankInterest rates on Domestic, NRO NRE deposits (Less than Rs 1 crore)Rate of Interest (% p.a.) w.e.f June 07, 2018TenureGeneral publicSenior Citizen7 days to 14 days44.515 days to 29 days4.254.7530 days to 45 days5.5646 days to 60 days5.756.2561 days to 90 days66.591 days to 120 days66.5121 days to 184 days66.5185 days to 289 days6.256.75290 days to less than 1 year6.571 year to 389 days6.67.1390 days to 2 years6.757.252 years 1 day upto 5 years77.55 years 1 day upto 10 years77.55 Years Tax saver FD(Max upto Rs.
1.50 lac)77.5(Source: icicibank.com)(: Interest Rates On Fixed Deposits, Recurring Deposits, Savings Accounts Of SBI, ICICI Bank, HDFC Bank)Fixed deposit interest rates of Bank of Baroda (BoB)For Domestic NRO fixed deposits [Per Annum] [Fresh Renewal] [Callable] (ROI in %)- Below Rs.
One Crore, according to bankofbaroda.com:TenorsBelow Rs 1 Cr.
(w.e.f.
14.06.18)7 days to 14 days4.2515 days to 45 days4.7546 days to 90 days591 days to 180 days5.5181 days to 270 days6.25271 days above and less than 1 year6.351 year6.6Above 1 year to 400 days6.7Above 400 days and upto 2 Years6.7Above 2 Years and upto 3 Years6.6Above 3 Years and upto 5 Years6.7Above 5 Years and upto 10 Years6.6Company fixed deposits offer much better returns than bank fixed deposits but are also riskier than bank FDs.Small finance banks' fixed deposit interest rates are as high as 9 per cent.