alexa

Search in Indianmoney's WealthPedia

Home Articles Everything You Need To Know About Fixed Deposit Interest Rates

Everything You Need To Know About Fixed Deposit Interest Rates

IndianMoney.com Research Team | Posted On Tuesday, April 16,2019, 03:07 PM

5.0 / 5 based on 1 User Reviews

Everything You Need To Know About Fixed Deposit Interest Rates

 

 

Fixed deposit (FD) is a financial instrument offered by banks and non-banking financial companies, NBFCs. Under the fixed deposit scheme, investors deposit a lump sum over a fixed period of time. The money deposited in a fixed deposit account earns annual interest which is much higher than that of a normal savings bank account. The tenure of deposit ranges from 7 days to 10 years.

Want to know more on Fixed Deposits? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

Types of Fixed Deposits

There are two types of fixed deposits:

1) Cumulative Fixed Deposits: The cumulative fixed deposit scheme offers compounded interest on either quarterly or yearly basis. The interest earned is paid out to the investor when FD matures.

2) Non-Cumulative Fixed Deposits: Under non cumulative fixed deposits, the interest is paid out on a monthly, quarterly, half yearly or annual basis, as per the investor’s choice.

FD Interest 2019

As mentioned earlier, the interest rate offered on fixed deposit is much higher than that of a normal savings bank account. Senior citizens are offered a slightly higher rate of interest. The table below shows the interest rate offered on FD by various banks and NBFCs.

Bank

Interest Rates

FD Tenure

SBI Fixed Deposit

5.75% - 6.85%

7 Days - 10 Years

HDFC Bank Fixed Deposit

3.50% - 7.40%

7 Days - 10 Years

ICICI Bank Fixed Deposit

4.00% - 7.50%

7 Days - 10 Years

Axis Bank

3.50% - 7.95%

7 Days - 10 Years

Kotak Bank

3.50% - 7.20%

7 Days - 10 Years

IDFC Bank

4.00% - 8.25%

7 Days - 10 Years

Bank of Baroda

4.50% - 6.85%

7 Days - 10 Years

Citibank

3.00% - 6.50%

7 Days - 1095 Days

IDBI Bank

5.75% - 7.25%

15 Days - 20 Years

Indian Bank

4.50% - 6.75%

7 Days - 10 Years

Indian Overseas Bank

4.50% - 6.80%

7 Days - 10 Years

OBC

5.75% - 7.00%

7 Days - 10 Years

PNB

5.75% - 6.75%

7 Days - 10 Years

HDFC

7.70% - 7.70%

12 Months - 84 Months

PNB Housing Finance

8.25% - 8.45%

12 Months - 84 Months

Allahabad Bank

5.00% - 6.75%

7 Days - 10 Years

Andhra Bank

4.00% - 6.80%

7 Days - 10 Years

Bank of India

5.25% - 6.70%

7 Days - 10 Years

Bank of Maharashtra

4.25% - 6.50%

7 Days - 10 Years

Canara Bank

5.75% - 6.75%

7 Days - 10 Years

Central Bank of India

4.80% - 6.65%

7 Days - 10 Years

Punjab and Sind Bank

4.00% - 7.00%

7 Days - 10 Years

UCO Bank

4.50% - 6.60%

7 Days - 10 Years

Union Bank of India

5.00% - 6.75%

7 Days - 10 Years

United Bank of India

4.00% - 6.50%

7 Days - 10 Years

LIC Housing Finance

8.15% - 8.30%

1 Year - 5 Years

Yes Bank

5.00% - 7.25%

7 Days - 10 Years

Syndicate Bank

4.75% - 7.05%

7 Days - 10 Years

Standard Chartered Bank

4.25% - 7.50%

7 Days - 5 Years

South Indian Bank

4.00% - 7.60%

7 Days - 10 Years

Bajaj Finserv

8.00% - 8.75%

12 Months - 60 Months

RBL Bank

5.00% - 8.05%

7 Days - 20 Years

Bandhan Bank

3.50% - 7.65%

7 Days - 10 Years

Federal Bank

3.50% - 7.30%

7 Days - 10 Years

Lakshmi Vilas Bank

4.50% - 8.00%

7 Days - 10 Years

Karur Vysya Bank

5.00% - 7.25%

7 Days - 10 Years

Karnataka Bank

3.50% - 7.50%

7 Days - 10 Years

Jammu And Kashmir Bank

5.00% - 7.55%

7 Days - 10 Years

IndusInd Bank

3.75% - 8.00%

7 Days - 10 Years

Corporation Bank

4.50% - 7.00%

7 Days - 10 Years

DBS Bank

4.00% - 7.50%

7 Days - 10 Years

DCB Bank

4.00% - 8.05%

7 Days - 120 Months

Dhanlaxmi Bank

4.00% - 7.25%

7 Days - 10 Years

HSBC Bank

3.15% - 6.75%

7 Days - 47 Months

DHFL

8.50% - 9.25%

12 Months - 120 Months

Frequency of FD Interest payouts

  • Periodic Interest Payout - In this, you receive a fixed interest at the end of each compounding period. The interest amount remains unchanged throughout the tenure of the fixed deposit. The principal would be repaid at the end of the tenure of FD.
  • Cumulative Deposit – Under this, the interest earned at the end of each compounding period is added to the principal. The new principal is the summation of the initial principal invested and the total interest earned. The interest earned throughout the tenure is paid out along with the principal invested when FD matures.

SEE ALSO: Tax Saving Fixed Deposits

How To Calculate Your FD Interest?

The interest rate on FD varies on the basis of tenure of deposit and principal invested. FDs of longer tenure earn higher interest. The interest is compounded on a monthly, quarterly, bi annual or annual basis.

The formula to calculate the corpus at maturity is as given below:

A = P(1+r/n)nt

A = Total corpus at maturity

P= Principal invested

R= Interest rate

N= Number compounding in a year

T= Tenure of investment

Consider the following example, you invest a principle of Rs 5,00,000 in an FD for 5 years, the rate of interest offered is at 7.50% and the interest is compounded on a quarterly basis.

The total amount earned at maturity is given by the compound interest formula:

A = 500000 (1+ 0.075/4)(4*5) = Rs 7,24,974.01

Total interest earned will be = A – P

Total interest earned = Rs 7,24,974.01 – Rs 5,00,000

Total interest earned = Rs 2,24,974.01

SEE ALSO: FD Interest Rates Calculator

What Is The Tax Treatment Of Your FD Investment?

The interest earned on FD is taxable as per the income tax bracket you fall under. Previously, TDS was applicable if the interest on FD exceeded Rs 10,000 a year. This was revised in the 2019 budget. The TDS is applicable at 10% only if the interest earned is in excess of Rs 40,000 a year. If the FD account is not linked with the PAN, then the TDS applicable is at 20%.

You May Also Watch

Iframe Content

Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.

Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.

Be Wise, Get Rich

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
CIBIL Meter
Get It now!
Attention!

This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.