INSUBCONTINENT EXCLUSIVE:
Fixed deposit (up to 1 year) below Rs 1 crore draws 6.65% interest rate in State Bank of India (SBI).
Bank fixed deposits (FDs) are hugely popular among risk-averse investors
Investments in stocks and mutual funds offer far superior returns but customers still bet big on bank fixed deposits (FDs) mainly because
the returns (interest rates) are assured and do not depreciate according to market-driven volatilities
FDs are of two types: one that is a tax-saver and the other are regular FDs
Tax-saving bank FDs require a minimum lock-in period of five years and cannot be withdrawn before the stipulated period
Regular FDs allow the customers to withdraw prematurely.Investments in regular FDs require you to pay income tax
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
But there are also tax-saving FDs, which allow you to save on income tax outgo.(: Latest Marginal Cost Of Funding-Based Lending Rates Of
SBI, Other Banks Compared)FDs provide you with the flexibility of fixing your money over a period of time
They offer various tenors with duration ranging from seven days to 10 years
But every bank has its own tenure criteria
Nevertheless, you should go for an FD in any bank, whether you hold a bank account or not
Choose what suits you the best, rather than falling into the trap of premature withdrawals, say financial experts.Consider the following
interest rates: a bank fixed deposit of less than Rs 1 crore with a tenure of up to one year fetches you an interest rate of 6.65 per cent
in State Bank of India (SBI), 6.60 per cent in ICICI Bank, 6.85 per cent in HDFC Bank, 7.10 per cent in Axis Bank, and 6.60 per cent in
Punjab National Bank (PNB).Given below is a comparison of fixed deposit (FD) interest rates of State Bank of India (SBI), ICICI Bank, HDFC
Bank, Axis Bank, and Punjab National Bank (the interest rates are valid only on bank fixed deposits below Rs 1 crore):BanksUp to 1 yearUp to
3 yearsUp to 5 yearsUp to 10 yearsSBI6.65%6.70%6.75%6.75%ICICI Bank6.60%7%7%7%HDFC Bank6.85%7%7%6%Axis
Bank7.10%7%7%7%PNB6.60%6.75%6.25%6.25%Some of these key banks also offer savings account options which can help you earn FD-like interest
