FD calculator: Fixed deposits of banks have always been popular instruments of safe and fixed income.
Fixed Despite many other investment options in the market, even today the craze of bank FD remains. However, along with the fall in the interest rates of loans, ie lending rates, there has been a steady decrease in the deposit rates of banks. In the recent few days, many banks have changed the interest rates on their FDs. Talking about 5-year FD, the interest rates in most commercial banks are more than 5 percent. Let us know about the revised FD rates of those banks which have changed this month. These interest rates on FDs are for deposits of less than Rs 2 crore.
Kotak Mahindra Bank
Kotak Mahindra Bank’s new FD rates have come into effect from 8 September 2021. After the change in FD rates, interest rates of Kotak Mahindra Bank have gone up from 2.50 per cent to 5.25 per cent per annum for tenures ranging from 7 days to 10 years. According to the bank’s website, FD rates are 2.50 percent on 7-14 days. 4.50 per cent for one year, 5 per cent for 2 years, 5.10 per cent for 3 years and 5.25 per cent for 5 years to 10 years. Senior citizens will get 0.50 percent more interest.
The new FD rates of Axis Bank are effective from 9 September 2021. Axis Bank’s FD interest rates range between 2.50 per cent to 5.75 per cent after the pressure in deposit rates. According to the bank’s website, FD rates are 2.50 percent on 7-14 days. 5.10 per cent for one year, 5.40 per cent for 2 years, 5.40 per cent for 3 years and 5.75 per cent for 5 years to 10 years.
IDFC First Bank
The new FD rates of IDFC First Bank are effective from 15 September 2021. IDFC First Bank FD interest rates range between 2.50 per cent to 5.25 per cent after the pressure in deposit rates. According to the bank’s website, FD rates are 2.50 percent on 7-14 days. 4.75 per cent on FDs of 1-2 years, 5.0 per cent for 2 years 1 day to 3 years and 5.20 per cent for 5 years and 5.25 per cent for 5 years 1 day to 10 years. 5.25 percent annual interest will be available on the 5-year tax saver FD. The bank is giving half percent more interest to senior citizens.
Fixed Income from FD
Fixed deposits / term deposits of banks are considered safe. This is a good option for risk-averse investors. It is not affected by market fluctuations. In this, the interest rates are fixed at the time of deposit itself. You have a fixed income on maturity.
FD: Best Tax Saving Option
Tax saving benefits under section 80C are available on tax saving FDs of 5 years. Tax deduction can be availed on deposits up to Rs 1.50 lakh per annum. However, it is important to know here that the interest earned from FD is taxable.