You can calculate the returns of a fixed deposit on the basis of an FD calculator.Bank fixed deposits, the fixed income instruments that offer guaranteed returns, allow customers to make a lump sum investment and earn a fixed interest rate.
Fixed deposits have a wide-ranging tenors ranging from seven days to 10 years, which means that you can choose the time period for which you want to lock your investments.
Fixed deposits offer assured returns because FD interest rates do not change with market fluctuations.
In fact, a fixed deposit can be chosen as per your financial goals, say experts.So say, you want to buy car in three years and want to arrange for its down payment, you can lock a sum of money in a fixed deposit and calculate its returns on the basis of an FD calculator, offered by most banks.
You will then get to know the exact amount that you will get once the fixed deposit investment matures.However, you need to note that income above Rs 10,000 earned as interest on fixed deposits of all banks or branches put together is taxable.
If your total interest income on fixed deposits is below the taxable limit, you can avoid deduction of tax by submitting Form 15G and Form 15H to the bank requesting them not to deduct any TDS or tax deducted at source.Leading banks like State Bank of India (SBI), ICICI Bank, HDFC Bank and Bank of Baroda (BoB) offer the facility of opening a fixed deposit.Given below is a comparison of FD interest rates offered by SBI, ICICI Bank, HDFC Bank and BoB on deposits below Rs 1 croreState Bank of India (SBI)Interest rate in per cent with effect from July 30, 2018Maturity periodGeneral publicSenior citizens7 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(Source: sbi.co.in)HDFC BankInterest rate in per cent with effect from August 6, 2018Maturity periodGeneral publicSenior citizens7 - 14 days3.504.0015 - 29 days4.254.7530 - 45 days5.756.2546 - 60 days6.256.7561 - 90 days6.256.7591 days - 6 months6.256.756 mnths 1 day- 6 mnths 3 days6.757.256 mnths 4 days6.757.256 mnths 5 days- 9 mnths6.757.259 mnths 1 day- 9 mnths 3 days7.007.509 mnths 4 days7.007.509 months 5 days - 9 months 15 days7.007.509 months 16 days7.007.509 months 17 days < 1 Year7.007.501 Year7.257.751 year 1 day - 1 year 3 days7.257.751 year 4 days7.257.751 year 5 days - 1 Year 15 Days7.257.751 Year 16 days7.257.751 year 17 days - 2 Years7.257.752 years 1day - 2 Years15 days7.107.602 Years16 days7.107.602 years17 days - 3 Years7.107.603 years 1day - 5 years7.107.605 Years 1 Day - 8 Years6.006.508 Years 1 Day - 10 Years6.006.50(Source: hdfcbank.com)(: Small Finance Banks Pay Up To 9.5% Interest On Fixed Deposits Below 1 Crore Rupees)ICICI BankInterest rate in per cent with effect from August 14, 2018Maturity periodGeneral publicSenior citizens7 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 days6.57290 days to less than 1 year6.757.251 year to 389 days6.757.25390 days to 2 years77.52 years 1 day upto 5 years7.257.755 years 1 day upto 10 years77.5(Source: icicibank.com)Bank of Baroda:TenorsBelow Rs 1 Cr.
(w.e.f.
22.08.18)7 days to 14 days4.2515 days to 45 days4.7546 days to 90 days591 days to 180 days5.5181 days to 270 days6.25271 days above and less than 1 year6.51 year6.65Above 1 year to 400 days6.75Above 400 days and upto 2 Years6.7Above 2 Years and upto 3 Years6.6Above 3 Years and upto 5 Years6.7Above 5 Years and upto 10 Years6.6(Source: bankofbaroda.com.)Some banks also offer partial withdrawal and loan facilities on fixed deposits.Recently, the government hiked interest rates on small savings schemes, which also include fixed deposits.