At present, the interest rate on one-year bank FDs - generally ranges from 7.75 per cent to 8.75% pa. After State Bank of India (SBI) revised its fixed deposit interest rates, private peers like ICICI Bank, HDFC Bank, Axis Bank and YES Bank have also followed suit.

Bank fixed deposits are term deposits where the investor makes a lump sum investment and earns a higher rate of return in comparison to a savings account, for a specified period of time.

At present, the interest rate on one-year bank FDs - generally ranges from 7.75 per cent to 8.75% per annum.The interest earned on FDs is taxed as per one's income tax slab on accrual basis.

If the interest amount exceeds Rs 10,000, the bank would deduct tax at source (TDS) at the rate of 10 per cent per annum.

Investment in fixed deposits gives you an assured return.

The returns are generally over and above than what is offered by a savings bank account.

However, returns vary as per the tenure of investments.Given below are interest rates on fixed deposits (FDs) offered by State Bank of India (SBI), ICICI Bank, HDFC Bank, Axis Bank and YES Bank:Fixed deposit (FD) interest rates offered by State Bank of India (SBI)Interest rates for retail domestic fixed deposits 'Below Rupees One Crore'(All figures in % per annum)TenorsExisting for Publicw.e.f.

28.03.2018Revised For Publicw.e.f.

28.05.2018Existing for Senior Citizensw.e.f.

28.03.2018Revised for Senior Citizensw.e.f.

28.05.20187 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 year6.46.656.97.152 years to less than 3 years6.66.657.17.153 years to less than 5 years6.76.77.27.25 years and up to 10 years6.756.757.257.25Fixed deposit (FD) interest rates offered by ICICI BankInterest rates on domestic, NRO NRE deposits (Less than Rs 1 crore)Tenure PeriodRate of Interest (% p.a.)w.e.f June 07, 2018GeneralSenior 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 upto 5 years77.55 years 1 day upto 10 years77.55 Years Tax saver FD(Max upto Rs.

1.50 lac)77.5Fixed deposit (FD) interest rates offered by HDFC BankDomestic / NRO / NRE Fixed DepositsPeriod< 1 CroreInterest Rate (per annum)**Senior Citizen Rates (per annum)7 - 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 mnths 1 day- 6 mnths 3 days6.35%6.85%6 mnths 4 days6.35%6.85%6 mnths 5 days- 9 mnths6.40%6.90%9 mnths 1 day- 9 mnths 3 days6.40%6.90%9 mnths 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 Years 15 days7.00%7.50%2 Years 16 days7.00%7.50%2 years 17 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%Fixed deposit (FD) interest rates offered by Axis BankThe following interest rates on Axis Bank fixed deposits are with effect from 08/06/2018 for general public:PERIODINTEREST RATES (% P.A.)DEPOSITS BELOW RS.

1 CRORE7 days to 14 days3.5015 days to 29 days3.5030 days to 45 days5.5046 days to 60 days6.0061 days < 3 months6.003 months < 4 months6.004 months < 5 months6.005 months < 6 months6.006 months < 7 months6.257 months < 8 months6.258 months < 9 months6.259 months < 10 months6.5010 months < 11 months6.5011 months < 1 year6.501 year < 13 months7.1013 months < 14 months7.1014 months < 15 months7.0015 months < 16 months7.0016 months < 17 months7.0017 months < 18 months7.0018 Months < 2 years7.002 years < 30 months7.0030 months < 3 years7.003 years < 5 years7.005 years to 10 years7.00The following interest rates on Axis Bank fixed deposits are with effect from 08/06/2018 for senior citizens:PERIODINTEREST RATES (% P.A.)DEPOSITS BELOW RS.

1 CRORE7 days to 14 days3.5015 days to 29 days3.5030 days to 45 days5.5046 days to 60 days6.0061 days < 3 months6.003 months < 4 months6.004 months < 5 months6.005 months < 6 months6.006 months < 7 months6.507 months < 8 months6.508 months < 9 months6.509 months < 10 months6.7510 months < 11 months6.7511 months < 1 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 years7.503 years < 5 years7.505 years to 10 years7.50Fixed deposit (FD) interest rates offered by YES BankRESIDENT FIXED DEPOSIT INTEREST RATES (% p.a)**PeriodRates for < 1 Crore w.e.f 5th June 2018RegularSenior Citizen***Interest RatesAnnualised Yield^Interest RatesAnnualised Yield^7 to 45 days5.00%5.00%5.50%5.50%46 to 90 days7.00%7.00%7.50%7.50%3 months to < 6 months6.90%6.90%7.40%7.40%6 months to < 9 months6.70%6.76%7.20%7.26%9 months to < 1 Year6.70%6.81%7.20%7.33%1 Years to <= 10 years*7.10%7.29%7.60%7.82%*Special Rates12 Months 10 Days to 12 Months 20 Days7.40%7.61%7.90%8.14%18 Months 8 Days to 18 Months 18 Days7.50%7.71%8.00%8.24%36 Months 10 Days to 36 Months 20 Days7.25%7.45%7.75%7.98%Small finance banks offer interest rates up to 9 per cent on fixed deposits.

Post offices also offer the option of opening fixed deposits.

Among other investment options, recurring deposits and public provident funds can also be considered.