Top 4 commercial banks that give up to 7.50% return on FDs for seniors


Investment

oi-Vipul Das

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On December 4, the Monetary Policy Committee agreed to keep repo rates stable and kept the policy program “accommodating” despite high inflation and some indicators of economic growth. Changes in the Reserve Bank of India’s (RBI) monetary policy, such as the repo rate, the prime rate, the internal liquidity position of banks, economic circumstances and the pace of credit demand, are the factors on which the term deposits of banks rely. For FD investors, this is good news as banks will no longer cut interest rates on term deposits. Banks that offer FD rates ranging from 7 days to 10 years are State Bank of India (SBI), ICICI Bank, HDFC Bank, and YES Bank. Depending on the deposit amount, the type of depositor and the maturity period, the FD interest rates of different banks differ.

Top 4 commercial banks that give up to 7.50% return on FDs for seniors

SBI FD rate

India’s largest trading giant SBI is promising its general investors interest rates of 2.9% to 5.4% and 3.4% to 6.2% on retail FDs to its senior investors. To synchronize them with the benchmark rates, the SBI periodically adjusts the interest rates. For term deposits up to Rs 2 crore, SBI offers eight maturity alternatives. The maturity period starts from seven days and lasts up to 10 years.

Mandate General public The elderly
7 days to 45 days 2.90% 3.40%
46 days to 179 days 3.90% 4.4%
180 days to 210 days 4.40% 4.90%
211 days to 365 days 4.40% 4.90%
1 year to 2 years 4.90% 5.40%
2 years to 3 years 5.10% 5.60%
3 years to 5 years 5.30% 5.80%
5 years to 10 years 5.40% 6.20%

ICICI Bank FD rate

ICICI Bank offers 2.50% to 5.50% to the general public on term deposits of 7 to 14 days and an additional 0.5% to the elderly. These rates are already in effect since October 21.

Mandate General public The elderly
7 days to 29 days 2.50% 2.90%
30 days to 90 days 3% 3.50%
91 days to 184 days 3.50% 4%
185 days to 365 days 4.40% 4.90%
1 year to 1.5 years 4.90% 5.40%
2 years 1 day to 3 years 5.15% 5.65%
3 years 1 day to 5 years 5.35% 5.85%
5 years 1 day to 10 years 5.50% 6%

HDFC FD Bank Rate

HDFC Bank, promises general investors 2.5% for 7-14 days and an additional 0.5% on term deposits for seniors with 12 maturity options. The maturity period varies from 7 days to 10 years. The bank updated its interest rates on fixed deposits forcefully from November 13.

Mandate General public The elderly
7-14 days 2.50% 3%
15-29 days 2.50% 3%
30-45 days 3% 3.50%
46-60 days 3% 3.50%
61-90 days 3% 3.50%
91 days – 6 months 3.50% 4%
6 months – 9 months 4.40% 4.90%
1 year 1 day – 2 years 4.90% 5.40%
2 years 1 day – 3 years 5.15% 5.65%
3 years 1 day – 5 years 5.30% 5.80%
5 years 1 day – 10 years 5.50% 6.25%

Yes Bank FD rate

Yes, the Bank offers interest rates for deposits of up to Rs 2 crore, ranging from 3.5% to 7% for the general public and an additional 0.50% for the elderly. The revised interest rates are in effect from November 5.

Mandate General public The elderly
7 days to 14 days 3.50% 4%
15 days to 45 days 4% 4.50%
46 days to 90 days 4.50% 5%
3 months to 6 months 5% 5.50%
6 months to 9 months 5.50% 6%
9 months to 1 year 5.75% 6.25%
1 year 1 day to 2 years 6.50% 7.00%
2 years 1 day to 3 years 6.50% 7.00%
3 years 1 day to 10 years 6.75% 7.50%

Top 4 commercial banks that give up to 7.50% return on FDs for seniors

Taxation

At your flat tax rate, FD interest is taxable along with the corresponding surcharge / termination. For example, if you have a gross annual income of Rs 10 lakh, you will be on the 30 percent tax slab. Suppose Rs 1 lakh is your FD interest. It will bear a tax of Rs 31,200 (tax rate of 30 percent and 0.4 percent cess). If the level of interest for the whole year reaches Rs 10,000 for AY 2019-20, the TDS limit on term deposits (FD) is 10%. This TDS deduction ceiling on FD is increased to Rs. 40,000 per year in the 2019 provisional budget, which comes into force in AY 2020-21. The TDS limit on fixed deposit interest is 20% under applicable tax laws if you do not provide the bank with your PAN card.

A fixed deposit is an investment strategy in which a sum of money can be deposited for a specified period and interest can be charged on it. The investor receives the interest received as well as the capital that he has deposited after the maturity of the term deposits. FD up to Rs. 5 lakh are guaranteed by the Deposit Insurance Guarantee Corporation of India (DIGCI), making it a secure investment vehicle. You can submit or use the 15G / 15H form if your overall income for the year is less than Rs 2.5 lakh. This indicates that the bank does not subtract the TDS, so the income from the taxable slabs does not decrease and you are not responsible for paying the income tax.

About Ruben V. Albin

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