Authors: JordanDuration for which money is deposited in fixed deposits (FD) enables customers to earn an interest rate.
Bank fixed deposit or bank FD is an investment instrument characterised with a higher interest rate compared with savings bank account.
In a bank FD, a customer is required to deposit a fixed amount of money for a pre-defined time period.
The duration for which the money is deposited in a fixed deposit enables the customer to earn an interest rate and thus generate interest income.
Interest income earned on fixed deposits invites income tax, which is deducted at source.
This income tax is known as TDS ('tax deducted at source').
The tenure of afixed depositvaries from 7 days to 10 years.
In case a customer wants to deposit more money in an FD account, he or she is not allowed to do so as the amount in the account is fixed until the maturity period.Leading banks offer the option of opening fixed deposit accounts.
Different banks pay varying interest rates on fixed deposits of varying tenures.
An amount of less than Rs 1 crore for a five-year fixed deposit (general public) fetches an interest rate of 6.25 per cent from Kotak Mahindra Bank, 7 per cent from Axis Bank, 6.75 per cent from State Bank of India (SBI), 6.5 per cent from ICICI Bank, and 7 per cent from HDFC Bank.(: When Your PPF Account Works Like A 5-Year Bank Fixed Deposit)Kotak Mahindra Bank fixed deposit interest rates for domestic / NRO / NRE fixed depositsInterest Rates for Domestic / NRO / NRE Fixed Deposits effective from May 2, 2018 (subject to change from time to time), according to kotak.comRegularSenior Citizen*Maturity Periods - Premature Withdrawal AllowedLess than Rs.1 Crore#Less than Rs.1 Crore#7 - 14 Days3.50%4.00%15 - 30 Days4.00%4.50%31 - 45 Days5.00%5.50%46 - 90 Days5.40%5.90%91 - 120 Days6.00%6.50%121 - 179 days6.25%6.75%180 Days6.50%7.00%181 Days to 269 Days6.50%7.00%270 Days6.50%7.00%271 Days to 363 Days6.50%7.00%364 Days6.90%7.40%365 Days to 389 Days6.90%7.40%390 Days (12 months 25 days)7.00%7.50%391 Days - Less than 23 Months6.90%7.40%23 Months6.90%7.40%23 months 1 Day- less than 2 years6.90%7.40%2 years- less than 3 years6.75%7.25%3 years and above but less than 4 years6.50%7.00%4 years and above but less than 5 years6.50%7.00%5 years and above upto and inclusive of 10 years6.25%6.75%Fixed deposit interest rates of Axis Bank The following interest rates on fixed deposits are with effect from May 3, 2018, according to axisbank.com:For general public:PERIODINTEREST RATES (% P.A.)INTEREST RATE ON DEPOSITSBELOW RS.
1 CRORE7 days to 14 days3.515 days to 29 days3.530 days to 45 days5.546 days to 60 days661 days < 3 months63 months < 4 months64 months < 5 months65 months < 6 months66 months < 7 months6.257 months < 8 months6.258 months < 9 months6.259 months < 10 months6.510 months < 11 months6.511 months < 1 year6.51 year < 13 months7.113 months < 14 months7.114 months < 15 months715 months < 16 months716 months < 17 months717 months < 18 months718 Months < 2 years72 years < 30 months730 months < 3 years73 years < 5 years75 years to 10 years7For senior citizens:PERIODINTEREST RATES (% P.A.)INTEREST RATE ON DEPOSITSBELOW RS.
I CRORE7 days to 14 days3.515 days to 29 days3.530 days to 45 days5.546 days to 60 days661 days < 3 months63 months < 4 months64 months < 5 months65 months < 6 months66 months < 7 months6.57 months < 8 months6.58 months < 9 months6.59 months < 10 months6.7510 months < 11 months6.7511 months < I year6.751 year < 13 months7.7513 months < 14 months7.7514 months < 15 months7.6515 months < 16 months7.6516 months < 17 months7.6517 months < 18 months7.6518 Months < 2 years7.652 years < 30 months7.6530 months < 3 years7.53 years < 5 years7.55 years to 10 years7.5State Bank of India (SBI) fixed deposit interest rates on deposits less than Rs 1 crore (according to sbi.co.in)(All figures in % per annum)TenorsExisting for Public w.e.f.
28.02.2018Revised For Public w.e.f.
28.03.2018Existing for Senior Citizens w.e.f.
28.02.2018Revised for Senior Citizens w.e.f.
28.03.20187 days to 45 days5.755.756.256.2546 days to 179 days6.256.256.756.75180 days to 210 days6.356.356.856.85211 days to less than 1 year6.46.46.96.91 year to less than 2 year6.46.46.96.92 years to less than 3 years6.56.677.13 years to less than 5 years6.56.777.25 years and up to 10 years6.56.7577.25Fixed deposit interest rates of ICICI BankInterest rates on domestic, NRO NRE deposits (Less than Rs 1 crore), according to icicibank.comTenure PeriodRate of Interest (% p.a.) w.e.f December 11, 2017GeneralSenior Citizen*7 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 up to 5 years6.575 years 1 day upto 10 years6.575 Years Tax saver FD(Max upto Rs.
1.50 lac)6.57Fixed deposit interest rates of HDFC Bank Domestic / NRO / NRE term deposits (hdfcbank.com)Period< 1 CroreInterest 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 Year6.85%7.35%1 year 1 day - 1 year 3 days6.50%7.00%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 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%You may also consider investing in fixed deposits of small finance banks, some of which offer interest rates as high as 9 per cent.Other investment options that can be considered are provident funds, National Pension System and National Savings Certificates.