The fixed deposits which offer premature withdrawal facility do not offer income tax benefits.Fixed deposits (FDs), also known as term deposits, offer guaranteed returns on investments.
In a fixed deposit account, money can be invested for a higher rate of interest than savings accounts.
One can deposit a lump sum of money in fixed deposits for a specific period, ranging from seven days to 10 years.
Lenders also pay slightly higher interest rates on fixed deposits to senior citizens, compared to the general public.
Fixed deposits are of two types: with premature withdrawal facility and without premature withdrawal facility.
The fixed deposits which offer premature withdrawal facility do not offer income tax benefits.
However, FDs without a premature withdrawal facility require a lock-in period of five or 10 years and offer income tax benefits.State Bank of India (SBI)The following FD interest rates are applicable on deposits below Rs 2 crore, according to the bank's website - sbi.co.in:TenorsRevised For Public w.e.f.
22.02.2019Revised for Senior Citizens w.e.f.
22.02.20197 days to 45 days5.75%6.25%46 days to 179 days6.25%6.75%180 days to 210 days6.35%6.85%211 days to less than 1 year6.4%6.9%1 year to less than 2 year6.8%7.3%2 years to less than 3 years6.8%7.3%3 years to less than 5 years6.8%7.3%5 years and up to 10 years6.85%7.35%(Source: sbi.co.in)HDFC BankThe following FD interest rates are applicable on deposits below Rs 2crore with effect from March 7, 2019 according to the bank's website - hdfcbank.com:PeriodInterest rate onFD less thanRs 2 CroreGeneral publicSenior citizen7 - 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 days7.10%7.60%9 months 4 days7.10%7.60%9 months 5 days - 9 months 15 days7.10%7.60%9 months 16 days7.10%7.60%9 months 17 days < 1 Year7.10%7.60%1 Year7.30%7.80%1 year 1 day - 1 year 3 days7.30%7.80%1 year 4 days7.30%7.80%1 year 5 days - 1 Year 15 days7.30%7.80%1 Year 16 days7.30%7.80%1 year 17 days - 2 Years7.30%7.80%2 years 1 day - 2 Years15 days7.40%7.90%2 Years16 days7.40%7.90%2 years17 days - 3 Years7.40%7.90%3 years 1 day - 5 years7.25%7.75%5 Years 1 day - 8 Years6.50%7.00%8 Years 1 day - 10 Years6.50%7.00%(Source: hdfcbank.com)ICICI BankThe following FD interest rates are applicable ondeposits below Rs 2 crore, with effect from March 7, 2019, according to the bank's website - icicibank.com:Rate of Interest (% p.a.) w.e.f March 7, 2019Tenure PeriodGeneralSenior Citizen7 days to 14 days4%4.5%15 days to 29 days4.25%4.75%30 days to 45 days5.5%6%46 days to 60 days6%6.5%61 days to 90 days6.25%6.75%91 days to 120 days6.25%6.75%121 days to 184 days6.25%6.75%185 days to 289 days6.5%7%290 days to less than 1 year6.75%7.25%1 year to 389 days6.9%7.4%390 days to 2 years7.1%7.6%2 years 1 day up to 3 years7.5%8%3 years 1 day up to 5 years7.25%7.75%5 years 1 day up to 10 years7%7.5%5 years Tax saver FD (max up to Rs.
1.50 lakh)7.25%7.75%(Source: icicibank.com)IDBI BankThe following FD interest rates are applicable ondeposits below Rs 2 crore, with effect from March 4, 2019, according to the bank's website - idbi.com:Maturity SlabInterest Rate (% p.a.) for general publicSenior Citizen's Interest rates15-30days5.756.2531-45 days5.756.2546-60 days6.256.7561-90 days6.256.7591-6 months6.256.756 months 1 day to 270 days6.57271 days to < 1year6.571 year7.257.75gt;1yrs to 2yrs7.27.7gt;2 yrs to < 3 yrs7.057.553 yrs to < 1100 days6.857.351100 Days7.37.80(7.40)Applicable to Non-Callable Deposits(7.90)Applicable to Non-Callable Depositsgt; 1100 days to < 5 yrs6.857.355 years6.857.35gt; 5yrs - 7yrs6.256.75gt;7 yrs - 10 yrs6.256.75gt;10 yrs - 20 yrs*66.5Federal BankThe following FD interest rates are applicable ondeposits below Rs 2crore, with effect from February 23, 2019, according to the bank's website - federalbank.co.in:PeriodLess than Rs 2 crore7 days to 14 days3.50%15 days to 29 days4.50%30 days to 60 days5.00%61 days to 90 days5.70%91 days to 180 days6.50%181 days to less than 1 year6.90%1 year to 549 days7.30%550 days7.50%551 Days to 2 years7.30%Above 2 years to less than 3 years7.40%3 years and above7.25%An additional interest rate of 0.50 per centis available for deposits of senior citizens for all tenors, according to bank's website.Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections.
Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general elections.