FD interest rates by top banks: From SBI to ICICI Bank, check how much returns they offer

Fixed deposits (FDs) are secure investments that offer predetermined interest on the amount invested for a specific time with a bank. They are considered low-risk investments with no risk of a capital loss.

How does fixed deposit work?

An individual needs to open a FD and invest a specific amount of money. The money should not be withdrawn before maturity to earn an interest rate. The duration of FDs ranges from 7 days to 10 years.

They offer benefits and features like fixed returns, flexible tenure, loans against FD and capital preservation.

Types of fixed deposits

Standard term FD: It is available with all banks where a person deposits a fixed amount for a specific tenure. The interest is paid on maturity.

Senior citizen FD: This FD is for citizens above the age of 60 years. It offers higher interest rates than standard FDs.

Tax-saving FD: This option provides tax benefits under Section 80C of the Income Tax Act. Individuals can claim deduction of up to ₹1.5 lakh annually by investing in tax-saving FDs. The lock-in period for tax-saving FDs is five years.

FD interest rates by top 8 banks

• State Bank of India: 6.8% for one year, 6.5% for three years, 6.5% for five years
• HDFC Bank: 6.6% for one year, 7% for three years, 7% for five years
• ICICI Bank: 6.7% for one year, 7% for three years, 7% for five years
• Axis Bank: 6.7% for one year, 7.1% for three years, 7% for five years
• Kotak Mahindra Bank: 7.10% for one year, 7% for three years, 6.20% for five years
• Bank of Baroda: 6.85% for one year, 6.5% for three years, 6.5% for five years
• Canara Bank: 6.85% for one year, 6.8% for three years, 6.7% for five years
• Punjab National Bank: 6.75% for one year, 7% for three years, 6.5% for five years

While fixed deposits are safe investments, one must research extensively and select a plan offering a reasonable interest rate with a moderate lock-in period.