Bank Fixed Deposits

Bank Fixed Deposits are also known as Term Deposits. In a Fixed Deposit Account, a certain sum of money is deposited in the bank for a specified time period with a fixed rate of interest. The rate of interest for Bank Fixed Deposits depends on the maturity period. It is higher in case of longer maturity period. There is great flexibility in maturity period and it ranges from 15days to 5 years. The interest can be compounded quaterly, half-yearly or annually and varies from bank to bank. Minimum deposit amount is Rs 1000/- and there is no upper limit. Loan / overdraft facility is available against bank fixed deposits. Premature withdrawal is permissible but it involves loss of interest.

Things to Remember Before Opening a FD Account
Before opening a fixed deposit account, check the financial position of the bank. Also, try to check the rates of interest for different banks for different periods. Instead of putting a big amount in one fixed deposit, keep the amount in five or ten small deposits. This way, in case of any premature withdrawal of partial amount, then only one or two deposits may need to be prematurely encashed. Thus, the loss of interest will be less than if a single big deposit were to be encashed. Check deposit receipts carefully to ensure that all details have been properly and accurately filled in. Do not leave the renewal column unfilled. Otherwise, on maturity the fixed deposit amount will go back into an FD. Before investing in a FD it is important to consider the rate of interest and the inflation rate. A high inflation rate can eat into your real returns. So, it is vital to have a look at the inflation rate before arriving at the real rate of interest.

Advantages of Fixed Deposit
Fixed deposits with the banks are nearly 100% safe as all the banks operating in the country, irrespective of whether they are nationalised, private, or foreign, are governed by the RBI's rules and regulations, and give due weightage to the interest of the investor. Till recently, all bank deposits were insured under the Deposit Insurance & Credit Guarantee Scheme of India, which has now been made optional. Nonetheless, bank deposits are among the safest modes of investment.
One can get loans up to 75- 90% of the deposit amount from banks against fixed deposit receipts. Though the interest charged will be slightly more than the interest earned by the deposit.
Tax Implications
The amount invested in fixed deposits with a maturity period of 5 years in a Scheduled bank is eligible for tax deduction under section 80C. However, the interest earned on the deposit is taxable.
Tax will be deducted at the source, if the interest income on a fixed deposit per annum exceeds Rs.10000.
How To Open a Bank Fixed Deposit Account
You can open a FD account with any bank, be it nationalized, private or foreign and make the deposit. However, some banks insist that you open a savings account with them to operate a FD.

9.25% FD Rate From IDBIwww.idbi.com9.25% Interest & 0.75% Extra for Senior Citizen

Deposit

A Fixed Deposit also known as a Term Deposit is an account which allows us to deposit money for a fixed time period. When the deposit period elapses, the depositors get interest on the amount deposited. The fixed deposit interest rates can be as high as 9.5% or more. Just deposit your savings at a bank of your choice and watch your money grow over time. Browse through the wide range of Fixed Deposit options and select the one that suits your needs the most.

At PaisaWaisa you can compare the fixed deposits rates, frequency of the interest payments etc. amongst banks like ICICI Bank, State Bank of India, IDBI Bank, HDFC Bank, Standard Chartered Bank etc. Browse through and open a fixed deposit account with just a few clicks.

Private Sector Banks

Indian Banks - Private Sector

BANK NAME / DURATION 1 yr<2 years 2yrs<3yrs 3yrs<5yrs
Axis Bank: 8.75 8.25 7.00
City Union Bank: 9.00 9.00 9.00
Development Credit Bank: 7.50 7.75 7.75
HDFC Bank: 8.00 8.25 8.25
ICICI Bank: 8.00 8.25 8.50
IndusInd Bank: 9.00 8.75 8.75
ING Vysya Bank: 8.50 8.75 8.75
Karnataka Bank: 9.75 9.50 9.25
Kotak Bank: 8.75 9.00 9.00
Tamilnad Mercantile Bank: 9.25 9.25 8.75
The Bank of Rajasthan Ltd: 8.00 8.25 8.50
The Catholic Syrian Bank: 8.60 8.80 8.80
The Dhanalakshmi Bank: 8.60 8.75 8.75
The Federal Bank: 9.25 8.75 8.75
The J & K Bank: 8.50 8.50 8.50
The Karur Vysya Bank: 10.00 9.75 9.00
The Lakshmi Vilas Bank: 10.10 9.00 7.75
The South Indian Bank 9.25 8.75 8.75
TNSC Bank 9.00 8.50 8.50
Yes Bank 8.25 8.50 8.75

Bank Fixed Deposit: Public Sector

Interest Rates on Bank Fixed Deposits

Indian Banks - Public Sector


BANK NAME / DURATION : 1 - 2yrs 2 - 3yrs 3 - 5yrs
Allahabad Bank : 8.00 8.25 8.25
Andhra Bank: 9.00 9.25 8.60
Bank of Baroda : 8.75 8.75 8.50
Bank of India: 8.75 8.25 7.75
Bank of Maharashtra: 8.30 8.30 8.30
Canara Bank: 8.75 8.75 8.50
Central Bank of India: 8.25 8.25 8.50
Corporation Bank: 9.15 9.25 9.25
Dena Bank: 8.50 8.50 8.25
IDBI Bank: 8.75 9.00 9.25
Indian Bank: 8.50 8.50 8.50
Indian Overseas Bank: 8.25 8.25 8.75
Oriental Bank of Commerce: 8.50 8.50 8.50
Punjab & Sind Bank: 8.50 9.00 9.00
Punjab National Bank: 8.75 8.50 8.50
State Bank of Bikaner&Jaipur: 8.50 9.25 9.00
State Bank of Hyderabad: 8.50 8.75 8.75
State Bank of India: 7.75 8.25 8.25
State Bank of Mysore: 8.75 8.50 8.50
State Bank of Patiala: 8.50 9.00 8.25
State Bank of Travancore: 8.50 8.75 8.75
Syndicate Bank: 9.00 9.00 9.00
UCO Bank: 8.00 8.25 8.25
Union Bank of India: 8.00 8.75 8.75
United Bank of India: 8.25 8.50 9.00
Vijaya Bank: 9.25 9.25 8.50