Fixed Deposit Schemes, Interest Rates Jan 2017 of all Banks in India Explained

What is a fixed deposit (FD)?

  • Fixed deposit is a fixed income instrument whereby the depositor earns interest at a fixed contracted interest rate for a defined period.
  • Interest rates on fixed deposits vary from bank to bank and based upon tenure of the fixed deposit and in some cases even by the amount deposited.
  • While the interest rate payable remains fixed for the period of the deposit, the rates offered for fresh deposits and for renewals may vary from time to time.
  • Interest on a fixed deposit may be paid either periodically (say, quarterly or half yearly or annually) or on maturity.
  • Interest on a FD is usually compounded quarterly in case of fixed deposits issued by banks.

Who can issue a fixed deposit?

    A fixed deposit may be issued by any of the following entities:
  • Scheduled banks operating in India including public sector banks, private banks and foreign bank branches operating in India
  • Deposit taking NBFC’s permitted by the RBI to accept deposits
  • Housing Finance Companies regulated by the National Housing Bank
  • Public Sector Companies and Undertaking
  • Private Sector Companies
  • Cooperative banks

Fixed Deposit Interest Rates and Calculators

Bank Name Get Current Fd Interest Rates Calculate Maturity Amount Last Update
SBI SBI FD Interest Rates SBI FD Calculator 02nd Jan 17
HDFC Bank HDFC Bank FD Interest Rates HDFC Bank FD Calculator 02nd Jan 17
ICICI Bank ICICI Bank FD Interest Rates ICICI Bank FD Calculator 02nd Jan 17
Axis Bank Axis Bank FD Interest Rates Axis Bank FD Calculator 16th Jan 17
Kotak Bank Kotak Bank FD Interest Rates Kotak Bank FD Calculator 02nd Jan 17
IDFC Bank IDFC Bank FD Interest Rates IDFC Bank FD Calculator 14th Dec 16
Bank of Baroda Bank of Baroda FD Interest Rates Bank of Baroda FD Calculator 16th Jan 17
Corporation Bank Corporation Bank FD Interest Rates Corporation Bank FD Calculator 10th Jan 17
IDBI Bank IDBI Bank FD Interest Rates IDBI Bank FD Calculator 28th Dec 16
Indian Bank Indian Bank FD Interest Rates Indian Bank FD Calculator 28th Dec 16
Indian Overseas Bank Indian Overseas Bank FD Interest Rates Indian Overseas Bank FD Calculator 28th Dec 16
OBC OBC FD Interest Rates OBC FD Calculator 29th Dec 16
PNB PNB FD Interest Rates PNB FD Calculator 02nd Jan 17
SBBJ SBBJ FD Interest Rates SBBJ FD Calculator 30th Dec 16
Syndicate Bank Syndicate Bank FD Interest Rates Syndicate Bank FD Calculator 14th Jan 17
Allahabad Bank Allahabad Bank FD Interest Rates Allahabad Bank FD Calculator 16th Jan 17
Andhra Bank Andhra Bank FD Interest Rates Andhra Bank FD Calculator 16th Jan 17
Bank of India Bank of India FD Interest Rates Bank of India FD Calculator 16th Jan 17
Bank of Maharashtra Bank of Maharashtra FD Interest Rates Bank of Maharashtra FD Calculator 16th Jan 17
Canara Bank Canara Bank FD Interest Rates Canara Bank FD Calculator 16th Jan 17
Central Bank of India Central Bank of India FD Interest Rates Central Bank of India FD Calculator 16th Jan 17
Dena Bank Dena Bank FD Interest Rates Dena Bank FD Calculator 10th Jan 17
Punjab and Sind Bank Punjab and Sind Bank FD Interest Rates Punjab and Sind Bank FD Calculator 30th Dec 16
State Bank of Hyderabad State Bank of Hyderabad FD Interest Rates State Bank of Hyderabad FD Calculator 30th Dec 16
State Bank of Mysore State Bank of Mysore FD Interest Rates State Bank of Mysore FD Calculator 16th Dec 16
State Bank of Patiala State Bank of Patiala FD Interest Rates State Bank of Patiala FD Calculator 14th Jan 17
State Bank of Travancore State Bank of Travancore FD Interest Rates State Bank of Travancore FD Calculator 14th Jan 17
UCO Bank UCO Bank FD Interest Rates UCO Bank FD Calculator 14th Jan 17
Union Bank of India Union Bank of India FD Interest Rates Union Bank of India FD Calculator 14th Jan 17
Vijaya Bank Vijaya Bank FD Interest Rates Vijaya Bank FD Calculator 14th Jan 17
United Bank of India United Bank of India FD Interest Rates United Bank of India FD Calculator 14th Jan 17
IndusInd Bank IndusInd Bank FD Interest Rates IndusInd Bank FD Calculator 28th Dec 16
Karur Vysya Bank Karur Vysya Bank FD Interest Rates Karur Vysya Bank FD Calculator 15th Dec 16
Ratnakar Bank Ratnakar Bank FD Interest Rates Ratnakar Bank FD Calculator 30th Dec 16
Yes Bank Yes Bank FD Interest Rates Yes Bank FD Calculator 14th Jan 17
Citibank Citibank FD Interest Rates Citibank FD Calculator 10th Jan 17
Deutsche Bank Deutsche Bank FD Interest Rates Deutsche Bank FD Calculator 10th Jan 17
HSBC Bank HSBC Bank FD Interest Rates HSBC Bank FD Calculator 28th Dec 16
Standard Chartered Bank Standard Chartered Bank FD Interest Rates Standard Chartered Bank FD Calculator 30th Dec 16
DHFL DHFL FD Interest Rates DHFL FD Calculator 02nd Jan 17
HDFC HDFC FD Interest Rates HDFC FD Calculator 14th Dec 16
LIC Housing Finance LIC Housing Finance FD Interest Rates LIC Housing Finance FD Calculator 02nd Jan 17
PNB Housing Finance PNB Housing Finance FD Interest Rates PNB Housing Finance FD Calculator 02nd Jan 17
Catholic Syrian Bank Catholic Syrian Bank FD Interest Rates Catholic Syrian Bank FD Calculator 16th Jan 17
City Union Bank City Union Bank FD Interest Rates City Union Bank FD Calculator 10th Jan 17
Development Credit Bank Development Credit Bank FD Interest Rates Development Credit Bank FD Calculator 27th Dec 16
Dhan Laxmi Bank Dhan Laxmi Bank FD Interest Rates Dhan Laxmi Bank FD Calculator 27th Dec 16
Karnataka Bank Karnataka Bank FD Interest Rates Karnataka Bank FD Calculator 15th Dec 16
South Indian Bank South Indian Bank FD Interest Rates South Indian Bank FD Calculator 30th Dec 16
Tamilnad Mercantile Bank Tamilnad Mercantile Bank FD Interest Rates Tamilnad Mercantile Bank FD Calculator 14th Jan 17
Federal Bank Federal Bank FD Interest Rates Federal Bank FD Calculator 27th Dec 16
Jammu And Kashmir Bank Jammu And Kashmir Bank FD Interest Rates Jammu And Kashmir Bank FD Calculator 15th Dec 16
Lakshmi Vilas Bank Lakshmi Vilas Bank FD Interest Rates Lakshmi Vilas Bank FD Calculator 15th Dec 16
Nainital Bank Nainital Bank FD Interest Rates Nainital Bank FD Calculator 15th Dec 16
DBS Bank DBS Bank FD Interest Rates DBS Bank FD Calculator 10th Jan 17
Bandhan Bank Bandhan Bank FD Interest Rates Bandhan Bank FD Calculator 12th Dec 16
Ahmedabad Mercantile Cooperative Bank Ahmedabad Mercantile Cooperative Bank FD Interest Rates Ahmedabad Mercantile Cooperative Bank FD Calculator 12th Dec 16
Abhyudaya Cooperative Bank Abhyudaya Cooperative Bank FD Interest Rates Abhyudaya Cooperative Bank FD Calculator 12th Dec 16
Akola Janata Commercial Cooperative Bank Akola Janata Commercial Cooperative Bank FD Interest Rates Akola Janata Commercial Cooperative Bank FD Calculator 12th Dec 16
Almora Urban Cooperative Bank Almora Urban Cooperative Bank FD Interest Rates Almora Urban Cooperative Bank FD Calculator 12th Dec 16
Jalgaon Janata Sahakari Bank Ltd Jalgaon Janata Sahakari Bank Ltd FD Interest Rates Jalgaon Janata Sahakari Bank Ltd FD Calculator 31st Dec 69
Janakalyan Sahakari Bank Ltd Janakalyan Sahakari Bank Ltd FD Interest Rates Janakalyan Sahakari Bank Ltd FD Calculator 15th Dec 16
Janaseva Sahakari Bank Borivli Janaseva Sahakari Bank Borivli FD Interest Rates Janaseva Sahakari Bank Borivli FD Calculator 15th Dec 16
Kalyan Janata Sahakari Bank Kalyan Janata Sahakari Bank FD Interest Rates Kalyan Janata Sahakari Bank FD Calculator 15th Dec 16
Kapol Cooperative Bank LTD Kapol Cooperative Bank LTD FD Interest Rates Kapol Cooperative Bank LTD FD Calculator 15th Dec 16

Comparison of FD schemes of banks and institutions?

Bank FD NBFC FD, HFC FD Corporate FD
Safety Highest Typically lower than banks Typically lower than banks
Credit rating Not required Mandatory Mandatory
Interest Rates Market linked, lower than other FD’s Typically higher than banks but linked to credit rating Typically higher than banks but linked to credit rating
FD Tenure Few days to 10 years 1 year to 5 years 1 year to 5 years
Options available Non cumulative and cumulative Non cumulative and cumulative Non cumulative and cumulative
Coverage under DCGCI Yes No No
Security None None None
Loan against FD Available at 0.5 – 1.0% over FD rate May be available Not available
Flexi/ Sweep facility Offered by many banks Not available Not available
Frequency of interest compounding Quarterly May vary May vary
Tax deduction at Source (TDS) On interest income of more than Rs. 10,000/ - for a PAN in one bank across branches On interest income of more than Rs. 5,000/ - for a PAN On interest income of more than Rs. 5,000/ - for a PAN
Tax Benefit Available on principal amount for long term deposits under Section 80-C None None
Availability Always on tap From time to time From time to time
Renewal Always possible at then interest rates From time to time From time to time
Nomination Facility Available Available Available
Employee FD’s Available; slightly higher interest (upto 0.5%) may be offered Available; slightly higher interest (upto 0.5%) may be offered Available; slightly higher interest (upto 0.5%) may be offered
Special schemes for senior citizens 0.25% to 1.0% higher interest rates 0.25% to 1.0% higher interest rates 0.25% to 1.0% higher interest rates
Shareholder FD’s No extra benefit Slightly higher interest may be offered in some cases Slightly higher interest may be offered in some cases

Are fixed deposits secured?

Fixed deposits are not secured. However, deposits (including all types of deposits with a bank) of an individual or entity upto Rs. 100,000 with banks are guaranteed by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

Typical features of fixed deposits

  • FD allows an individual to earn higher interest rate on surplus money as compared to normal saving accounts which earns only 4-6% p.a.
  • Fixed deposit period can range from a few days to 10 years.
  • A separate deposit is issued each time an amount is deposited as FD. However, there is no limitation on how many FD’s one can open.
  • Depositor gets a fixed deposit receipt (FDR), which he/ she has to return to the bank at the time of maturity.
  • Bank FD’s can be renewed if the depositor so desires. The FD interest rates applicable at the time of renewal (and not the FD interest rates at which the earlier FD is placed) will apply. FD’s issued by other entities may o may mot be renewed depending upon their requirements.
  • An individual can avail loans against fixed deposit from the same bank from which the FD has been issued. Loans against a bank’s own FD are exempt from base rate benchmarked pricing and hence can be offered below base rate also. Typically banks offer loans against FD at 0.5 % to 1.0% above FD rate.
  • Part withdrawals are not allowed. However, in case of emergency an individual can close the fixed account prior to maturity date. In such cases, bank may charge a penalty to the investor and the rate of interest will change for the period. Let’s say Anita invested in an FD for, say, 6 years with interest rate of 8% with a bank in India but decided to withdraw the deposit after 2 years. The FD interest payable to Anita will be 1 – 2% less than the interest rate applicable on the date of deposit for 2 year FD tenure (says 7.5%). So, instead of the contracted rate of 8%, Anita will earn interest at 5.5% to 6.5%.

Advantages of Bank Fixed Deposit

  • Fixed return; no risk of lower return irrespective of market movements.
  • Higher interest rate compared to savings bank account.
  • Loan facility against FD from the same bank at low rates.
  • Channelizes surplus capital towards economic development of the country.
  • Safety and security of principal and interest.

Disadvantages of Fixed Deposit Account

  • Potentially lower returns compared to other investment options.
  • Penalty applicable in case of premature withdrawal.
  • No hedge against inflation in the economy.

Six things to check when selecting a Bank Fixed Deposit

  • Compare fixed deposit rates of all banks.
  • Compare FD rates of non banks like NBFC’s, HFC’s and private companies in case you have higher risk appetite and can forego liquidity.
  • Check frequency of compounding when comparing FD rates. Always try and compare effective rates on same basis of compounding.
  • Mode of interest pay out and FD maturity – prefer direct credit to bank account to avoid delays and cheque handling.
  • Understand pre mature withdrawal facility offered on chosen FD and its penalty, if any
  • Find out if the bank offers auto sweep facility

Eligibility to open a fixed deposit account

  • Individual depositors above 18 years of age and having a PAN
  • Hindu Undivided Family (H.U.F) with a separate PAN
  • Minors (those below 18 years of age) under guardianship of a guardian more than 18 years old
All depositors must satisfy RBI mandated KYC guidelines which include identity proof, age proof and address proof, among others.

Renewal of Fixed Deposit

On maturity, the customer may renew the bank deposit by contacting the branch. Customer can also place an auto renewal request with the bank for either the maturity amount or only the principal component (in which case the interest, subject to TDS, will get credited to the depositor’s bank account).
Corporate, NBFC and HFC renewals are dependent upon their then existing policies.

Nomination facility on Fixed Deposits

  • All deposit accepting banks, NBFC’s, HFC’s and corporates offers nomination facility.
  • Nominee is a person who claims the deposit upon depositor’s death.
  • Without a nominee, money in the FD will not be automatically transferred to the account-holder’s next of legal heirs and the claimants will need to establish their bonafide with the bank.
  • Nominations can be changed or cancelled by the FD account holder.

Loan against Fixed Deposit

  • Banks offer facility of loan against FD. This is particularly helpful if the FD is for a long term and the requirement of funds is only for a brief period making it unattractive to break the fixed deposit. Loan against FD can be availed only from the same bank at which the deposit is placed.
  • Most banks allow loans upto 90% of the value of the fixed deposit.
  • Tenure for loan against FD has to be within the balance maturity of the deposit.
  • The interest rate on a loan against Fixed Deposit is usually 0.5% – 2% above the interest rate on the deposit. Loans against bank’s own deposits are exempt from base rate and hence cane b offered below the bank’s base rate also.
  • Loan against FD can typically be availed even if the applicant has a poor credit history or CIBIL record and a low CIBIL score. Regular repayment of loan agsnt FD may also help improve one’s CIBIL score.

Income tax on Fixed Deposit interest

  • Interest on FD’s is taxed at marginal tax rate applicable to the depositor. Hence, for a person in highest tax bracket, the post tax return on a FD that earns 9% interest may work out to just 6%.
  • One point that lot of depositors are unaware of is that interest income on FD’s is taxed on accrual basis. To explain this further, lets take the example of a cumulative fixed deposit of Rs. 100,000/ placed at 10% for 5 years on 1st April 2014. The maturity value of this FD will be Rs. 163,862 taking into account quarterly compounding. The first year interest accrued on this FD comes to Rs. 10,381. However, the depositor will not receive any interest credit on this FD in the year 2014-15 as the interest is payable on maturity. Still, the depositor must pay tax on the accrued interest in the year 2014-15 in the assessment year 2015-16.
  • In case the interest earned by you on fixed deposits with all branches of a bank in a year exceeds Rs. 10,000, your interest income will be subject to tax deduction of source (TDS) at 10.3%. Remember to quote your IT PAN whne opening the fixed deposit, as otherwise the bank will need to deduct twice the tax at 20.6%. Also, you can claim credit for TDS only if your PAN is recorded with the bank.

What is a tax saver Fixed Deposit (80-C deposit)?

This is a special type of fixed deposit where the investor gets tax deduction on principal invested under Section 80-Cwhen they invest a sum of money in the deposit. The maximum benefit is available up to an investment of Rs. 1 Lakh with a lock-in period of 5 years. Different banks offer different schemes under this category FD. Interest rate may vary from bank to bank and the deposit amount. Premature withdrawal is not allowed under this category. However, if the deposit is encashed before maturity, the amounts held under this scheme do not qualify for deductions.

Income tax on Fixed Deposit interest

  • Interest on FD’s is taxed at marginal tax rate applicable to the depositor. Hence, for a person in highest tax bracket, the post tax return on a FD that earns 9% interest may work out to just 6%.
  • One point that lot of depositors are unaware of is that interest income on FD’s is taxed on accrual basis. To explain this further, lets take the example of a cumulative fixed deposit of Rs. 100,000/ placed at 10% for 5 years on 1st April 2014. The maturity value of this FD will be Rs. 163,862 taking into account quarterly compounding. The first year interest accrued on this FD comes to Rs. 10,381. However, the depositor will not receive any interest credit on this FD in the year 2014-15 as the interest is payable on maturity. Still, the depositor must pay tax on the accrued interest in the year 2014-15 in the assessment year 2015-16.
  • In case the interest earned by you on fixed deposits with all branches of a bank in a year exceeds Rs. 10,000, your interest income will be subject to tax deduction of source (TDS) at 10.3%. Remember to quote your IT PAN whne opening the fixed deposit, as otherwise the bank will need to deduct twice the tax at 20.6%. Also, you can claim credit for TDS only if your PAN is recorded with the bank.
News - Jan 2017
17th Jan 17 ICICI Bank blocks payments for its customers on Flipkart wallet PhonePe
ICICI Bank has blocked payments for its customers on Flipkart wallet PhonePe due to security concern on customer data. The bank has barred the payment services since 13th January, 2017.
17th Jan 17 LIC Housing Finance registers a 19 percent growth in its net profit in third quarter of FY 17
LIC Housing Finance has reported an increase of 19 per cent in its net profit at Rs. 499 core for third quarter ending on 31st December, 2016 as compared to Rs. 419 crore for the corresponding period a year ago. Non performing assets of the company have declined to 0.56 percent from 0.58 percent during the same period a year ago.
17th Jan 17 LIC Housing Finance registers a 15 percent growth in its loan disbursements in third quarter of FY 17
LIC Housing Finance has reported an increase of 15 per cent in its loan disbursements at Rs. 9, 684 crore during October to December quarter of FY17 as compared to Rs. 8, 422 crore for the same quarter last year. The housing finance company has also registered a 15 per cent growth in disbursements for loan against property at Rs. 1, 35, 366 crore in the third quarter of FY17 as compared to Rs. 1, 17, 396 crore in the same quarter a year ago.
17th Jan 17 DHFL net profit increases by 38 percent in third quarter of FY 17
DHFL has registered an increase of 38 percent in its net profit at Rs 244 crore for the third quarter ending on 31st December, 2016 as compared to Rs. 185 crore in the corresponding period a year ago. The growth in profit has been contributed by a healthy growth in loan sanctions and disbursements as well as improved revenue and interest margin.
17th Jan 17 State Bank of India likely to increase its stake in its credit card joint venture SBI cards
SBI is likely to increase its stake in its credit card joint venture named as SBI cards and payments services (SBICPSL). SBI expects to complete the deal by March, 2017. Currently, SBI with 47.6 lakh credit cards has the second largest number of credit cards in circulation in the country.
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