fixed deposit interest rates

Here are some key points about fixed deposit interest rates:

Variability: Fixed deposit interest rates are not fixed across all banks or financial institutions. They can vary based on the bank’s policies, RBI regulations, and economic factors. Different banks may offer different rates for the same tenure.

Tenure: Longer tenures often result in higher interest rates. Banks typically offer higher interest rates for fixed deposits with longer lock-in periods to attract long-term investments.

Interest Payment Frequency: Interest can be compounded quarterly, half-yearly, or annually. Some banks offer the option of monthly payouts as well. The frequency of interest payments can affect the effective annual yield.

Senior Citizens: Many banks offer higher interest rates for senior citizens as a benefit to encourage their savings. Senior citizens can often get fixed deposit rates higher than those offered to regular investors.

Market Conditions: Economic conditions, inflation rates, and RBI policies play a role in determining the interest rates. During periods of high inflation, interest rates might be higher to offset the loss of purchasing power.

Comparison Shopping: It’s important for investors to compare the fixed deposit rates offered by different banks before making a decision. Different banks might have varying rates for the same tenure.

Taxation: Interest earned on fixed deposits is taxable as per the investor’s income tax slab. This taxation can impact the effective returns from the fixed deposit.

Penalties for Premature Withdrawal: Banks usually impose penalties if the fixed deposit is withdrawn before the maturity date. These penalties can affect the effective returns on the investment.

Here are the latest articles on fixed deposit interest rates from Financial Express:

1. BoI offers 7.5 per cent interest rate on 175-day special fixed deposit Read more


2. You can maximise Fixed Deposit returns and ensure liquidity with laddering. Know how it works Read more


3. Is Senior Citizen Fixed Deposit in banks better than Post Office? 5 factors to help you decide Read more


4. Fintech customers may switch to banks, NBFCs after rate hike Read more


5. What is Green Fixed Deposit? Interest Rate, Benefits, Risks and How it works – Explained Read more


6. Senior citizens can get up to 8% interest with HDFC Fixed Deposit. Details here Read more


7. Disadvantages of Fixed Deposit: 5 reasons not to invest Read more


8. Senior Citizen Fixed Deposit calculator: Interest on Rs 1 lakh FD – SBI vs HDFC Bank vs Post Office Read more


9. Post Office Fixed Deposit Interest Rate April-June 2023: Time Deposits to earn up to 7.7% now Read more


10. Fixed Deposit vs Debt Funds: Which is better for you after the recent change in taxation? Read more