Bank fixed deposits or FDs are fixed-income instruments with fixed rate of return.Bank fixed deposits or FDs are fixed-income instruments which guarantee a fixed rate of return on investments.
Bank fixed deposits should not be confused with corporate fixed deposits, the returns on which depend on a company's performance.
Leading banks like State Bank of India (SBI), HDFC Bank, ICICI Bank, and Yes Bank offer the facility of opening a fixed deposit.
These days bank fixed deposits can be created online.
Thus, it is convenient for customers to create fixed deposits.How are FD interest rates determinedFixed deposit interest rates vary across banks according to the tenor of a fixed deposit.
Most banks offer fixed deposits starting from seven days up to a tenor of 10 years.Fixed deposit interest rates are subject to change from time to time.How to get an interest payout on fixed deposit investmentsYou can opt for a monthly, quarterly and annual interest payout.
You can also keep the entire amount as well as the interest income fixed to receive the proceeds on your FD investment at the time of maturity.How to calculate FD interestBefore creating an FD, you can always check the amount of interest that will accrue on your FD investment.
Most banks offer this facility on their websites.FD interest rates offered by SBI, HDFC Bank, ICICI Bank, Yes Bank:State Bank of IndiaThe following FD interest rates are applicable on deposits below Rs.
1 crore, according to the bank's website - sbi.co.in:HDFC BankThe following FD interest rates are for deposits below Rs 1 crore with effect from October 6, according to the bank's website - hdfcbank.com: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 mnths 1 day- 6 mnths 3 days6.75%7.25%6 mnths 4 days6.75%7.25%6 mnths 5 days- 9 mnths6.75%7.25%9 mnths 1 day- 9 mnths 3 days7.00%7.50%9 mnths 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 1day - 2 Years 15 days7.10%7.60%2 Years 16 days7.10%7.60%2 years 17 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%ICICI BankThe following FD interest rates are for deposits below Rs 1 crore, according to the bank's website - icicibank.com:Tenure PeriodRate of Interest (% p.a.) w.e.f August 14, 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 days6.57290 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 years77.55 Years Tax saver FD(Max upto Rs.
1.50 lac)7.257.75Yes BankThe following FD interest rates are applicable on deposits below Rs 1 crore with effect from June 5, 2018, according to yesbank.in:RESIDENT FIXED DEPOSIT INTEREST RATES (% p.a)**PeriodRates for < 1 Crore w.e.f 5thJune2018RegularSenior Citizen***Interest RatesInterest 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 to12 Months 20 Days7.40%7.90%18 Months 8 Days to18 Months 18 Days7.50%8.00%36 Months 10 Days to36 Months 20 Days7.25%7.75%Is FD interest taxableThe interest income earned on bank fixed deposits is fully taxable.
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.However, fixed deposits with a maturity period of five years or 10 years offer income tax benefits under Section 80 C of the Income Tax Act, 1961.