Fixed deposits (FDs) are secure financial instruments, which offer guaranteed returns.
In a fixed deposit account, money is deposited for a specific time, which varies from seven days to 10 years.
Besides, fixed deposit offer higher interest rates than savings accounts.
Normal savings accounts offer interest rates between 3-4 per cent usually.
Fixed deposits, however, 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 interest rates offered by State Bank of India (SBI), Punjab National Bank (PNB), Union Bank, HDFC Bank and ICICI Bank on fixed deposits up to Rs.
1 crore:State Bank of India (SBI)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.
30.07.2018Revised 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 years6.857.35Punjab National BankThe following FD interest rates are applicable on deposits below Rs 1 crore, according to the bank's website - pnbindia.in:Sl.
NoPeriodInterest rate for general public(with effect from August 1, 2018)Interest rate for senior citizens(with effect from August 1, 2018)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 up to 3 years6.757.2510above 3 year up to 5 years6.256.7511above 5 years up to 10 years6.256.75Union BankThe following FD interest rates are applicable on deposits below Rs 1 crore with effect from August 27, 2018 according to the bank's website - pnbindia.in:Tenurelt; Rs.
1 Cr7 day 14 day515 day 30 day531 day 45 day546 day 90 day5.591 day- 120 day6.25121 day to - 179 days6.25180 days6.5181 day to <10 Month6.510 Month to 14 Month6.75gt;14 Month to 3 Year6.7gt;3 year - 5 Year6.85gt;5 year - 10 Year6.85HDFC 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:Periodlt; 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 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 applicable on 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)7.257.75Small finance banks such as Jana Small Finance Bank, Fincare Small Finance Bank and ESAF Small Finance Bank offer interest rates up to 9.5 per cent on FDs.