Some fixed deposits also offer the benefit of income tax deduction.Bank fixed deposits (FDs) are fixed-income instruments with a guaranteed rate of return on investments.
Investing in a fixed deposit is secure because the returns are fixed across predetermined, specific periods of time.
Some fixed deposits also offer the benefit of income tax deduction.
However, bank fixed deposits which come with a premature withdrawal facility do not offer income tax deduction benefits.
Fixed deposit accounts which do not offer a premature withdrawal facility offer this benefit but have a lock-in period.Top lenders like State Bank of India (SBI), ICICI Bank and HDFC Bank offer the option of creating a fixed deposit account.
Interest rates on fixed deposits vary according to separate maturity baskets across different banksState Bank of India (SBI):The following FD interest rates are applicable on deposits below Rs1 crore, according to the bank's website - sbi.co.in:TenorsRevised For Public w.e.f.
28.11.2018Revised for Senior Citizens w.e.f.
28.11.20187 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 year6.87.32 years to less than 3 years6.87.33 years to less than 5 years6.87.35 years and up to 10 years6.857.35(Source: sbi.co.in)ICICI BankThe following FD interest rates are applicable on deposits below Rs1 crore, according to the bank's website - icicibank.com:Maturity PeriodInterest rates (per annum)Term deposits of less than Rs 1 croreNew rates (with effect from November 15)Increase in basis points (bps)7 days to 14 days4.00%-15 days to 29 days4.25%-30 days to 45 days5.50%-46 days to 60 days6.00%25 bps61 days to 90 days6.25%25 bps91 days to 120 days6.25%25 bps121 days to 184 days6.25%25 bps185 days to 289 days6.50%-290 days to less than 1 year6.75%-1 year to 389 days6.90%15 bps390 days upto 2 years7.10%10 bps2 years 1 day upto 3 years7.50%25 bps3 years 1 day upto 5 years7.25%-5 years 1 day upto 10 years7.00%-5 years (80C FD)7.25%-HDFC BankThe following FD interest rates are applicable on deposits below Rs.
1 crore from November 6, 2018, according to the bank's website - hdfcbank.com: