SOURCE : NEW18 NEWS
Last Updated:January 19, 2025, 09:55 IST
An individual can invest a certain amount of money at a predefined interest rate for a predetermined period of time, which can range from seven days to 10 years, using a fixed deposit (FD).
Customers should compare the FD interest rates that various banks are offering for the appropriate duration.
When compared to alternative investment options, bank fixed deposits have long been regarded as a safe investment. Many people choose fixed deposits (FD) because they believe they are safer, more reliable, and more stable. The length of the account, the quantity of the deposit, economic variables like inflation and the repo rate, and other economic considerations all affect the interest rates on fixed deposits, which differ from bank to bank.
For the required tenure, bank customers should compare the interest rates provided by various banks. A comparison of interest rates offered by private, public, and international banks over a three-year period may be seen in this table:
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Private sector banks like DCB Bank (7.55 per cent) and RBL Bank (7.5 per cent) offer the highest interest rates on 3-year fixed deposits, while Canara Bank leads among public sector banks with 7.4 per cent. Public sector banks generally offer slightly lower rates compared to private sector counterparts.
Among foreign banks, Deutsche Bank offers the highest interest rate on 3-year fixed deposits at 8 per cent, significantly outpacing HSBC Bank (7 per cent) and Standard Chartered Bank (7.1 per cent). This makes Deutsche Bank a standout choice for higher returns in this category.
It is important to note that the data comes from Paisabazaar as of January 8, 2025.
Fixed Deposit: How Easy It Is To Take Out Your Money?
While other investment options often have withdrawal restrictions or lock-in periods, a fixed deposit lets you quickly take your money in an emergency. The ability to quickly access funds for unforeseen expenses or crises is a useful characteristic of fixed deposits.
Fixed Deposit: When Is TDS Applicable?
In a fiscal year, TDS (tax-deducted-at-source) would be withheld if the interest on the FDs exceeded Rs 40,000 (Rs 50,000 for senior persons).
If your PAN card details have been supplied, the annual interest deduction for resident clients will be 10 per cent. If you do not have a PAN card, the bank will take 20 per cent of your income each year.
