Fixed deposits (FDs) are secure investment avenue offered by banks and post office.Union Minister Piyush Goyal on Friday proposed to increase the limit for tax deduction at source (TDS) on interest income from Rs 10,000 to Rs 40,000 per annum.
The proposal will benefit senior citizens and small depositors who depend upon income from interest on deposits in banks and post offices, Mr Goyalsaid while presenting the Budget.
With this announcement, investors are likely to get more returns from their fixed deposit (FD) investments.
Fixed deposits (FDs) are secure investment avenue offered by banks, non-banking financial companies and post offices.The interest rates on fixed deposits (FDs), which are revised from time to time, vary according to the tenor of a fixed deposit.SBI offers maturity period ranging from seven days to ten years for fixed deposits.
The following FD interest rates are applicable on deposits below Rs.
1 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)Post OfficePost office FD account offers interest rates across four maturities: one year, two years, three years, and five years.Given below are the FD interest rates offered by post office as mentioned on India Post's website- indiapost.gov.in:PeriodRate1yr.A/c7.00%2yr.A/c7.00%3yr.A/c7.00%5yr.A/c7.80%In a post office FD account, interest is payable annually but is calculated quarterly.Find LIVE Budget 2019, updates, latest news, videos, key highlights, reactions, tax and policy changes here.
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