Fixed deposits (FDs) are secure investment instruments that offer higher interest rates than deposits in savings accounts.
Unlike stocks and mutual funds, fixed deposits offer safereturns as they are unaffected by market volatility, experts say.
FDs are of two types: with premature withdrawal facility and without premature without facility.
The fixed deposits which offer premature withdrawal facility do not offer income tax benefits.
On the other hand, FDs without a premature withdrawal facility offer income tax benefits but require a lock-in period of five or ten years.
FD accounts can be started for a specific period, which can be as short as seven days.Fixed deposit interest rates are subject to change from time to time.
Private sector lender ICICI Bank revised its fixed deposit interest rates with effect from Monday.State Bank of IndiaThe following FD interest rates are applicable on deposits below Rs.
2 crore with effect from May 9, 2019, according to sbi.co.in:PeriodGeneral public (% p.a.)Senior citizens (% p.a.)7 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 year77.52 years to less than 3 years6.757.253 years to less than 5 years6.77.25 years and up to 10 years6.67.1Punjab National BankThe following FD interest rates are applicable on deposits up to Rs.
2 crore with effect from May 1, 2019, according to pnbindia.in:PeriodGeneral public (% p.a.)Senior Citizen (% p.a.)7 to 14 days5.756.2515 to 29 days5.756.2530 to 45 days5.756.2546 to 90 days6.356.8591 to 179 days6.356.85111 days6.57180 days to 270 Days6.356.85222 days6.67.1271 days to less than 1 year6.356.85333 days6.957.451 year77.5555 days6.857.35above 1 year - up to 3 years6.757.25above 3 year - up to 5 years6.256.75above 5 years - up to 10 years6.256.75HDFC BankThe following FD interest rates are applicable on deposits below Rs.
2 crore from June 12, 2019, according to hdfcbank.com:PeriodGeneral Public (% p.a.)Senior Citizen(% p.a.)7 - 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 months 1 day- 6 months 3 days6.757.256 months 4 days6.757.256 months 5 days- 9 months6.757.259 months 1 day- 9 months 3 days7.107.609 months 4 days7.107.609 months 5 days - 9 months 15 days7.107.609 months 16 days7.107.609 months 17 days < 1 Year7.107.601 year7.307.801 year 1 day - 1 year 3 days7.307.801 year 4 days7.307.801 year 5 days - 1 year 15 days7.307.801 Year 16 days7.307.801 year 17 days - 2 years7.307.802 years 1 day - 2 years 15 days7.407.902 years 16 days7.407.902 years 17 days - 3 years7.407.903 years 1 day - 5 years7.257.755 years 1 day - 8 years6.507.008 years 1 day - 10 years6.507.00ICICI BankThe following FD interest rates are applicable on deposits below Rs.
2 crore from June 17, 2019, according to icicibank.com:Senior citizens usually get a higher rate of interest on fixed deposits compared to general public.