INSUBCONTINENT EXCLUSIVE:
Fixed deposit accounts which have a lock-in period of five or 10 years also offer income tax benefits.Fixed deposits (FDs) are secure
financial instruments, which offer guaranteed returns
FD interest rates vary according to the tenure of the fixed deposit and across banks
In a fixed deposit account, money is deposited for a specific time, which varies from 7 days to ten years
Some fixed deposits come with a premature withdrawal facility while some require a compulsory lock-in period
Recently, banks such as Kotak Mahindra Bank, HDFC Bank,ICICI Bank have revised their fixed deposit rates.Here is a comparison of fixed
deposit (FD) rates offered by State Bank of India (SBI), Kotak Mahindra Bank, Axis Bank, HDFC Bank and ICICI Bank:Fixed deposit (FD) rates
offered by Kotak Mahindra Bank (Below Rs
Premature Withdrawal AllowedLess than Rs 1 CroreLess than Rs 1 Crore7 - 14 Days3.50%4.00%15 - 30 Days4.00%4.50%31 - 45 Days5.00%5.50%46 - 90
Days5.50%6.00%91 - 120 Days6.00%6.50%121 - 179 days6.25%6.75%180 Days6.50%7.00%181 Days to 269 Days6.75%7.25%270 Days6.75%7.25%271 Days to
363 Days7.00%7.50%364 Days7.00%7.50%365 Days to 389 Days7.25%7.75%390 Days (12 months 25 days)7.25%7.75%391 Days - Less than 23
Months7.25%7.75%23 Months7.30%7.80%23 months 1 Day- less than 2 years7.30%7.80%2 years- less than 3 years7.10%7.60%3 years and above but
less than 4 years7.10%7.60%4 years and above but less than 5 years7.00%7.50%5 years and above up to and inclusive of 10
1 crore):Revised from July 30, 2018:TermInterest rate for general public w.e.f
30.07.2018Interest rate 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
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
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
to 60 days6661 days < 3 months663 months < 4 months664 months < 5 months665 months < 6 months666 months < 7 months6.256.57 months < 8
months6.256.58 months < 9 months6.256.59 months < 10 months6.56.7510 months < 11 months6.56.7511 months < 1 year6.56.751 year < 13
months7.17.7513 months < 14 months7.17.7514 months < 15 months77.6515 months < 16 months77.6516 months < 17 months77.6517 months < 18
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
However, income earned on fixed deposits is taxable
Fixed deposit interest is tax-free until a certain threshold, after which it is chargeable
After the interest earned exceeds Rs
10,000, tax is deducted at source.
