Even as Fixed Deposit interest rates for various tenors have gone up this year, post-tax returns for many depositors are still below the expected inflation number for FY 2023-24, a calculation done by FundsIndia in its monthly Wealth Conversations Report (September 2023) shows.

The inflation rate expected for FY 2023-24 is 5.4%. However, post-tax returns of fixed deposits of various tenors in four top banks work out to be lower than the inflation rate for depositors in the 30% tax bracket.

The calculation shows how the post-tax returns of the four banks are below inflation across different tenors for individuals in the 30% tax bracket. Let’s have a look:

6-month FD

HDFC Bank: The pre-tax FD return is 4.5% but post-tax it is only 3.14%.

ICICI Bank: The pre-tax FD return is 4.75% but post-tax it is only 3.31%.

SBI: The pre-tax FD return is 5.25% but post-tax it is only 3.66%.

PNB: The pre-tax FD return is 5.5% but post-tax it is only 3.83%.

Also Read: Canara Bank, Post Office, ICICI, BoB, Axis, HDFC Bank to SBI: 5-year Fixed Deposit rates compared

One-year FD

HDFC Bank: The pre-tax FD return is 6.6% but post-tax it is only 4.62%.

ICICI Bank: The pre-tax FD return is 6.7% but post-tax it is only 4.69%.

SBI: The pre-tax FD return is 6.8% but post-tax it is only 4.76%.

PNB: The pre-tax FD return is 6.75% but post-tax it is only 4.76%.

Fixed deposit post tax returns
Source: FundsIndia Wealth Conversations Report September 2023

2-year FD

HDFC Bank: The pre-tax FD return is 7% but post-tax it is only 4.95%.

ICIC Bank: The pre-tax FD return is 7.1% but post-tax it is only 5.02%.

SBI: The pre-tax FD return is 7% but post-tax it is only 4.95%.

PNB: The pre-tax FD return is 6.8% but post-tax it is only 4.81%.

3-year FD

HDFC Bank: The pre-tax FD return is 7% but post-tax it is only 5%.

ICICI Bank: The pre-tax FD return is 7% but post-tax it is only 5%.

SBI: The pre-tax FD return is 6.5% but post-tax it is only 4.63%.

PNB: The pre-tax FD return is 7% but post-tax it is only 5%.

5-year FD

HDFC Bank: The pre-tax FD return is 7% but post-tax it is only 5.09%.

ICICI Bank: The pre-tax FD return is 7% but post-tax it is only 5.09%.

SBI: The pre-tax FD return is 6.5% but post-tax it is only 4.72%.

PNB: The pre-tax FD return is 6.5% but post-tax it is only 4.72%.