Bank Fixed Deposit Interest Rate: FD stands for Fixed Deposit. It is a type of investment where an individual deposits a lump sum amount with a bank for a fixed period. The deposited amount earns interest at a fixed rate, which is decided at the time of account opening. FD holders can choose to receive the interest monthly, quarterly, half-yearly, or annually as per their preference. Recently, India’s major banks have updated their fixed deposit (FD) interest rates at the start of the new year. Here’s a breakdown of the new rates:

HDFC Bank FD Rates

HDFC Bank has raised rates on bulk deposits by 5-10 basis points. The interest rates range from 4.75% to 7.40% for general customers and 5.25% to 7.90% for senior citizens on FDs ranging from 7 days to 10 years.

PNB FD Rates

Punjab National Bank (PNB) is offering interest rates of 7.75% for general customers on FDs of 400 days. For a scheme of 303 days, customers will receive 7.5%. Senior citizens will earn 7.2% on FDs of 506 days. PNB’s interest rates range from 3.5% to 7.25% for common customers.

SBI FD Scheme for Senior Citizens

SBI has introduced a new FD scheme called ‘SBI Patron’ for senior citizens aged 80 years and above. Senior citizens will receive interest rates ranging from 4% to 7.50% on FDs of 7 days to 10 years. Super senior citizens (aged over 80 years) will get an additional 10 basis points compared to regular senior citizens.

Features and Benefits of a Fixed Deposit (FD)

  1. Assured Returns – FDs offer fixed interest rates, ensuring predictable returns on your investment.
  2. Flexible Tenure – You can choose a duration that suits your financial goals, ranging from a few days to 10 years.
  3. Safety and Stability – FDs are one of the safest investment options, providing stable growth for your savings.
  4. Easy Investment – You can open an FD online with minimal documentation.
  5. Loan Against FD – You can get a loan against your FD at competitive interest rates, up to 90% of the FD amount with any bank.
  6. Tax Benefits – Some FDs, like the 5-year tax-saving FD, offer deductions under Section 80C of the Income Tax Act.
  7. Senior Citizen FD – Many banks provide special FD schemes for senior citizens with higher interest rates.
  8. Periodic Interest Payouts – You can opt for periodic payouts to help manage monthly expenses.
  9. Regular Income – FDs offer periodic interest payouts, making them a good source of income.
  10. Capital Protection – Your principal amount is secure, ensuring guaranteed returns.

Disclaimer: Fixed Deposit (FD) interest rates and benefits vary by bank and are subject to change. Investors should check with their bank for the latest terms and conditions. This information is for general awareness and does not constitute financial advice. Times Bull is not responsible for any financial investments made, as it is entirely your responsibility. Please consult a financial advisor for better results.