Today I am going to let you know about the FD(Fixed Deposit) interest rates paid by banks in India. Before knowing the interest rate lets know about "Fixed Deposits" Fixed Deposits are one of the most popular ways to save money. which is also called safe investment, which comes with good returns, and are easy to open.
In a fixed deposit, you put a lump sum in your bank for a fixed tenure at an agreed rate of interest. At the end of the tenure, you receive the amount you have invested plus compound interest & its also called term deposits. In FD money is deposited for a specific time, which vary from 5 days to ten years.
Fixed deposits are offering higher interest rates than savings bank accounts, are offered by banks like "State Bank of India (SBI), HDFC Bank, ICICI Bank, among others. In a fixed deposit account, money is deposited for a specific time, which varies from 5 days to ten years. Some fixed deposits come with a premature withdrawal facility while some require a compulsory lock-in period. FD interest rates of most banks are higher for senior citizens as compared to those for the general public. The FD 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.
The FD is of two types: regular and tax-saving. Partial withdrawal of regular FDs is allowed, but FDs that save taxes require customers to close their savings for a minimum of five years.
The interest rates of fixed deposits (FD) are regularly reviewed according to the interest rate cycle established by the Reserve Bank of India (RBI) and the interest varies for several tenors of a fixed deposit. The interest rates for the elderly are also slightly higher than those of others.
State Bank of India (SBI)
The following FD interest rates are applicable on deposits below Rs. 2 crores, according to sbi.co.in:
| Tenors | Revised For Public w.e.f. 22.02.2019 | Revised for Senior Citizens w.e.f. 22.02.2019 |
|---|---|---|
| 7 days to 45 days | 5.75 % | 6.25% |
| 46 days to 179 days | 6.25% | 6.75% |
| 180 days to 210 days | 6.35% | 6.85% |
| 211 days to less than 1 year | 6.4% | 6.9% |
| 1 year to less than 2 year | 6.8% | 7.3% |
| 2 years to less than 3 years | 6.8% | 7.3% |
| 3 years to less than 5 years | 6.8% | 7.3% |
| 5 years and up to 10 years | 6.85% | 7.35% |
| (Source: sbi.co.in) |
HDFC Bank
The following FD interest rates are applicable on deposits below Rs. 2 crores from March 7, 2019, according to bank's website- hdfcbank.com
| Period | Interest Rate (per annum) | Senior Citizen Rates (per annum) |
| 7 - 14 days | 3.50% | 4.00% |
| 15 - 29 days | 4.25% | 4.75% |
| 30 - 45 days | 5.75% | 6.25% |
| 46 - 60 days | 6.25% | 6.75% |
| 61 - 90 days | 6.25% | 6.75% |
| 91 days - 6 months | 6.25% | 6.75% |
| 6 months 1 day- 6 months 3 days | 6.75% | 7.25% |
| 6 months 4 days- 9 months | 6.75% | 7.25% |
| 9 months < 1 Year | 7.10% | 7.60% |
| 1 year - 2 Years | 7.30% | 7.80% |
| 2 years - 3 Years | 7.40% | 7.90% |
| 3 years - 5 years | 7.25% | 7.75% |
| 5 Years - 8 Years | 6.50% | 7.00% |
| 8 Years - 10 Years | 6.50% | 7.00% |
ICICI Bank
The following FD interest rates are applicable on deposits below Rs. 2 crores, according to bank's website- icicibank.com
The rate of Interest applicable from March 7, 2019
| Tenure Period | General | Senior Citizen |
| 7 days to 14 days | 4 | 4.5 |
| 15 days to 29 days | 4.25 | 4.75 |
| 30 days to 45 days | 5.5 | 6 |
| 46 days to 60 days | 6 | 6.5 |
| 61 days to 90 days | 6.25 | 6.75 |
| 91 days to 120 days | 6.25 | 6.75 |
| 121 days to 184 days | 6.25 | 6.75 |
| 185 days to 289 days | 6.5 | 7 |
| 290 days to less than 1 year | 6.75 | 7.25 |
| 1 year to 389 days | 6.9 | 7.4 |
| 390 days to 2 years | 7.1 | 7.6 |
| 2 years 1 day up to 3 years | 7.5 | 8 |
| 3 years 1 day up to 5 years | 7.25 | 7.75 |
| 5 years 1 day up to 10 years | 7 | 7.5 |
| 5 Years Tax saver FD(Max up to Rs.1.50 lac) | 7.25 | 7.75 |
Punjab National Bank (PNB)
The following FD interest rates are applicable on deposits below Rs. 2 crores with effect from March 1, 2019, according to the bank's website - pnbindia.in
| Period | General public (% p.a.) | Senior citizen (% p.a.) | |
| 7 to 14 days | 5.75 | 6.25 | |
| 15 to 29 days | 5.75 | 6.25 | |
| 30 to 45 days | 5.75 | 6.25 | |
| 46 to 90 days | 6.35 | 6.85 | |
| 91 to 179 days | 6.35 | 6.85 | |
| 111 days | 6.5 | 7 | |
| 180 days to 270 Days | 6.35 | 6.85 | |
| 222 days | 6.6 | 7.1 | |
| 271 days to less than 1 year | 6.35 | 6.85 | |
| 333 days | 7.1 | 7.6 | |
| 1 year | 6.75 | 7.25 | |
| 555 days | 6.85 | 7.35 | |
| 6.75 | 7.25 | |
| above 3 years & up to 5 years | 6.25 | 6.75 | |
| above 5 years & up to 10 years | 6.25 | 6.75 |
Small finance banks often pay higher returns on term deposits (or fixed deposits (FD)) compared to commercial banks in the public and private sectors. Small financial banks, such as Ujjivan, Equitas, Utkarsh, Jana and Capital, offer interest at a rate of 5-9 percent in fixed deposits of up to Rs. 2 crores, as per their websites.
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Prashant Kr Abhishek
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