Fixed deposits offer much higher interest rates than savings accounts.Fixed deposits (FDs) are secure financial instruments, which offer guaranteed returns.
FD interest rates vary according to the tenure of the fixed deposit and across banks.
In a fixed deposit account, money is deposited for a specific time, which can vary from 7 days to ten years.
Fixed deposits offer much higher interest rates than savings accounts.
The fixed deposit accounts which have a lock-in period of five or 10 years also offer income tax benefit under Section 80C of the Income Tax Act.Here is a comparison of fixed deposit (FD) rates offered by State Bank of India (SBI), HDFC Bank, Punjab National Bank (PNB), and Yes Bank:Fixed deposit (FD) rates offered by State Bank of India (Below Rs.
1 crore):Revised from July 30, 2018:TermInterest rate for general public w.e.f.
30.07.2018Interest rate for senior citizens w.e.f.
30.07.20187 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 year6.77.22 years to less than 3 years6.757.253 years to less than 5 years6.87.35 years and up to 10 years6.857.35.FD interest rates offered by Yes Bank:RESIDENT FIXED DEPOSIT INTEREST RATES (% p.a)PeriodRates for < 1 Crore w.e.f 5th June 2018Regular Interest RatesSenior Citizen Interest Rates7 to 45 days5.00%5.50%46 to 90 days7.00%7.50%3 months to < 6 months6.90%7.40%6 months to < 9 months6.70%7.20%9 months to < 1 Year6.70%7.20%1 Years to <= 10 years*7.10%7.60%Special Rates12 Months 10 Days to 12 Months 20 Days7.40%7.90%18 Months 8 Days to 18 Months 18 Days7.50%8.00%36 Months 10 Days to 36 Months 20 Days7.25%7.75%Fixed deposit (FD) rates offered by Punjab National Bank (Below Rs.
1 crore):Domestic TD Less Than Rs.1 Cr.
W.e.f August 1, 2018Sl.
NoPeriodROI (% p.a.)For Senior Citizen ROI (% p.a.)17 to 14 days5.76.2215 to 29 days5.76.2330 to 45 days5.76.2446 to 90 days6.356.85591 to 179 days6.356.856180 days to 270 Days6.356.857271 days to less than 1 year6.356.8581 year6.757.259above 1 year upto 3 years6.757.2510above 3 year upto 5 years6.256.7511above 5 years upto 10 years6.256.75FD interest rates offered by HDFC Bank applicable from August 6, 2018 for deposits below Rs 1 crore:Period< 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 months 1 day- 6 months 3 days6.75%7.25%6 months 4 days6.75%7.25%6 months 5 days- 9 months6.75%7.25%9 months 1 day- 9 months 3 days7.00%7.50%9 months 4 days7.00%7.50%9 months 5 days - 9 months 15 days7.00%7.50%9 months 16 days7.00%7.50%9 months 17 days < 1 Year7.00%7.50%1 Year7.25%7.75%1 year 1 day - 1 year 3 days7.25%7.75%1 year 4 days7.25%7.75%1 year 5 days - 1 Year 15 Days7.25%7.75%1 Year 16 days7.25%7.75%1 year 17 days - 2 Years7.25%7.75%2 years 1 day - 2 Years15 days7.10%7.60%2 Years16 days7.10%7.60%2 years17 days - 3 Years7.10%7.60%3 years 1 day - 5 years7.10%7.60%5 Years 1 Day - 8 Years6.00%6.50%8 Years 1 Day - 10 Years6.00%6.50%Fixed deposit interest is tax-free until a certain threshold, after which it is chargeable.
After the interest earned exceedsRs.10,000, tax is deducted at source.