Fixed Deposit Interest Rates: Check out the latest FD rates of SBI, HDFC Bank and others

Bank fixed deposits (FDs) continue to be a popular investment product not just among senior citizens, who are looking for guaranteed income, but also among investors who are risk averse. However, over-exposure to fixed deposits can cause sub-optimal usage of idle money. If you have put all your money in FDs, then you need to reassess your strategy to decide how much money you would want to park in them. The return gained from FDs may not give you a real return (a return that is above the rate of inflation). Hence, if you have thought of parking your money in FDs to sponsor your daughter’s marriage in 15 years, then an FD may not be the right strategy for you. However, if you are aiming to take a holiday in two years, then an FD can help.

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You can save money by parking your funds in the fixed income products and also earn an interest income on the same. However, investments and interest in fixed deposits are subjected to income tax. A benefit of tax deduction under section 80C cannot be availed for fixed deposits with a tenure lesser than 5 years.

Most Indian public sector banks like SBI and IDBI usually offer interest rates up to 6.75 per cent for periods less than 5 years, while private sector banks like HDFC, ICICI and Axis banks offer interest rates up to 7.5 per cent for the same period.

Here is a table of the latest bank fixed deposit interest rates:

Source: bankbazaar.com
For each year range, a maximum offered interest rate is considered; Interest Rate for normal fixed deposit amount below Rs 1 Cr