Government of India has designated certain schemes as eligible for tax savings under Sec 80c of the IT Act. Amounts upto Rs. 1 lakh per year are deductible from taxable amounts under this provision. Schemes eligible under this provision include certain Post Office schemes, tax savings bank fixed deposits (which have to be of at least 5 years duration) as well as Equity Linked Savings Schemes (ELSS) which are equity based mutual funds requiring a lock-in period of 3 years.
Tax Benefit Under Fixed Deposit (FD)
- Fixed deposits made upto Rs. 1 lakh for a period of 5 years are exempted from payment of income tax under Sec 80C.
- The maturity period of term deposit shall be five years commencing from the date of the receipt. No term deposit can be encashed before the expiry of five years from the date of its receipt.
- No premature payment before 5 years possible.
- The deposit cannot be pledged to secure any loans or as security to any other loan/facility.
Lets Check the latest rates of fixed deposit (FD) in various banks and compare the rates accordingly. If you want to compare fixed deposit interest rates widely then go to http://www.paisawaisa.com/banking/fixed-deposit.aspx.
1) State Bank of India fixed deposit rates
a. Interest rates for domestic term deposits below Rs 1 crore
|
Duration
|
Revised Rates w.e.f. 08.09.2009
|
|
15 days to 45 days
|
3.00%
|
|
46 days to 90 days
|
4.00%
|
|
91 days to 180 days
|
5.25%
|
|
181 days to less than 1 year
|
6.00%
|
|
1 year to less than 2 years
|
6.50%
|
|
2 years to less than 3 years
|
7.00%
|
|
3 years to less than 5 years
|
7.25%
|
|
5 years to less than 8 years
|
7.50%
|
|
8 years and up to 10 years
|
7.75%
|
b. Interest rates for domestic term deposits of Rs 1 cr & above:
|
Duration
|
Revised Rates w.e.f. 15.06.2009
|
|
7 days to 14 days
|
1.50%
|
|
15 days to 30 days
|
2.00%
|
|
31 days to 45 days
|
2.25%
|
|
46 days to 90 days
|
2.50%
|
|
91 days to 180 days
|
3.00%
|
|
181 days to 270 days
|
4.00%
|
|
271 days to less than 1 year
|
4.50%
|
|
One Year & above
|
5.00%
|
2) HDFC Bank fixed deposit rates
for regular fixed deposits below Rs 15 lakh
|
Maturity Period
|
Revised Rates w.e.f. 18.05.2009
|
|
15 – 29 days
|
2.25%
|
|
30 – 45 days
|
3.00%
|
|
46 – 60 days
|
3.50%
|
|
61 – 90 days
|
3.75%
|
|
91 days to less than 6 months 1 day
|
4.50%
|
|
6 months 1 day – 6 months 15 days
|
5.50%
|
|
1 year 17 days – 2 years
|
6.00%
|
|
2 years 17 days – 3 years
|
6.00%
|
|
3 years 1 day – 5 years
|
6.00%
|
|
5 years 1 day – 10 years
|
6.00%
|
3) ICICI Bank fixed deposit (fd) rates
Interest rates for domestic term deposits:
|
Maturity Period
|
Deposit of less than Rs 15 lakh w.e.f. August 1, 2009
|
|
7 days to 14 days
|
N.A.
|
|
15 days to 29 days
|
3.00%
|
|
30 days to 45 days
|
3.00%
|
|
46 days to 60 days
|
3.50%
|
|
61 days to 90 days
|
3.50%
|
|
91 days to 120 days
|
5.25%
|
|
121 days to 180 days
|
5.25%
|
|
181 days to less than 1 year
|
6.00%
|
|
1 year to 389 days
|
6.50%
|
|
390 days
|
6.75%
|
|
391 days to 589 days
|
6.50%
|
|
990 days
|
7.75%
|
|
991 days to less than 3 years
|
7.00%
|
|
3 years to less than 4 years
|
7.50%
|
|
4 years to less than 5 years
|
7.50%
|
|
5 years up to 10 years
|
8.00%
|
4) HSBC India
Interest rates for domestic / Non-Resident Ordinary Rupee (NRO) term deposit accounts:
|
FD Period
|
Interest rates effective from August 14, 2009
|
|
15 days
|
2.80%
|
|
30 days
|
2.80%
|
|
60 days
|
3.25%
|
|
90 days
|
3.50%
|
|
180 days
|
3.90%
|
|
270 days
|
4.25%
|
|
1 year
|
4.25%
|
|
2 years
|
4.75%
|
|
3 years to 5 years
|
5.50%
|
5) Axis Bank
Interest rates for domestic deposits:
|
Period
|
Interest rate on deposits below Rs 50 lakh effective Aug 29, 2009
|
|
15 days to 29 days
|
2.50%
|
|
30 days to 45 days
|
3.00%
|
|
46 days to 60 days
|
3.50%
|
|
61 days to less than 3 months
|
4.00%
|
|
3 months to less than 6 months
|
4.50%
|
|
6 months to less than 9 months
|
6.00%
|
|
9 months to less than 1 year
|
6.25%
|
|
1 year to less than 2 years
|
6.75%
|
|
2 years to less than 3 years
|
7.30%
|
|
3 years to less than 5 years
|
7.05%
|
|
5 years up to 10 years
|
7.00%
|
6) Corporation Bank
The interest rates on domestic term deposits with effect from Sept 4, 2009:
|
Duration
|
Interest rate on less than Rs 15 lakh
|
From 15 lakh to less than Rs 1 cr
|
|
15 days to 29 days
|
2.75%
|
2.75%
|
|
30 days to 45 days
|
3.00%
|
2.75%
|
|
46 days to 90 days
|
4.00%
|
3.75%
|
|
91 days to less than 6 months
|
5.00%
|
4.75%
|
|
6 months to less than 9 months
|
6.00%
|
5.50%
|
|
9 months to less than 12 months
|
6.25%
|
6.00%
|
|
12 months to less than 2 years
|
7.00%
|
6.75%
|
|
2 years to less than 5 years
|
7.25%
|
7.00%
|
|
5 years to less than 8 years
|
7.50%
|
7.25%
|
|
8 years and above
|
7.75%
|
7.25%
|
Related posts:
- Tax Saver Fixed Deposit (FD): Tax Benefits
- How to Avoid Tax Deduction at Source (TDS) on Bank Fixed Deposit?
- Bank Term Deposit Scheme
- Tax Only When Interest Credited to Fixed Deposits: CBDT
- Post Office Time Deposit Account
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{ 12 comments… read them below or add one }
Dear sir
I need every type of updates about the VAT, Sales Taxes, as well as TDS updations. And Kindly send me the calculation procedure of all the taxes.
with regards
pawan bhardwaj
sir,
i want to knw about the fixed deposit rate in foreign banks as well.
Dear sir
I need every type of updates about the VAT, Sales Taxes, Service Tax,as well as TDS updations. And Kindly send me the calculation procedure of all the taxes.
Regards
swapnil
Dear Sir,
May I know how much percentage of TDS,Service Tax,Tcs & in which transaction deducted above tax.
so please kindly understand with briefly.
Dear Sir,
May I know how much percentage of TDS,Service Tax,Tcs & in which transaction deducted above tax.
so please kindly understand with briefly.
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(Thebuzzingstreet1@gmail.com)
I wanted to know the fixed deposit interest 6.75% you have mentioned is with or without TDS. What is the percentage of TDS?
the rates are relatively low compared to other providers for instance there is an investment management firm that gives 12% per year yet its investments are good as bank deposits because it issues you a 100% cash collaterised guarantee issued by a bank .i think peopl may try out such risk free high yeilding investments.
Dear Sir,
i need all banks fixed deposit rate from 2007 onwards
Dear Sir,
I want to know the details of which bank gave highest intrest rate for fixed deposit from 2007 onwards
Divya
Dear Sir ,
Kindly let me know what is the fixed deposite retes of Corporation Bank for latest 2011 for 1 year.
Regards,
Divya Shetty
Borivali(w)