Fixed Deposit (FD) Interest Rates: SBI Vs HDFC Bank Vs ICICI Bank Vs PNB


Bank fixed deposits (FDs) are hugely popular among risk-averse investors. Investments in stocks and mutual funds offer far superior returns but customers still bet big on bank fixed deposits (FDs) mainly because the returns (interest rates) are assured and do not depreciate according to market-driven volatilities. FDs are of two types: one that is a tax-saver and the other are regular FDs. Tax-saving bank FDs require a minimum lock-in period of five years and cannot be withdrawn before the stipulated period. Regular FDs offer the facility of premature withdrawal.

Investments in regular FDs require you to pay income tax. If the interest amount exceeds Rs 10,000, the bank would deduct tax at source (TDS) at the rate of 10 per cent per annum. But there are also tax-saving FDs, which allow you to save on income tax outgo.

(Also Read: Latest Marginal Cost Of Funding-Based Lending Rates Of SBI, Other Banks Compared)

FDs provide you with the flexibility of fixing your money over a period of time. They offer various tenors with duration ranging from seven days to 10 years. But every bank has its own tenure criteria. Nevertheless, you should go for an FD in any bank, whether you hold a bank account or not. Choose what suits you the best, rather than falling into the trap of premature withdrawals, say financial experts.

Consider the following interest rates: a bank fixed deposit of less than Rs 1 crore with a tenure of up to one year fetches you an interest rate of 6.65 per cent in State Bank of India (SBI), 6.60 per cent in ICICI Bank, 6.85 per cent in HDFC Bank, 7.10 per cent in Axis Bank, and 6.60 per cent in Punjab National Bank (PNB).
Given below is a comparison of fixed deposit (FD) interest rates of State Bank of India (SBI), ICICI Bank, HDFC Bank, Axis Bank, and Punjab National Bank (the interest rates are valid only on bank fixed deposits below Rs 1 crore):

BanksUp to 1 yearUp to 3 yearsUp to 5 yearsUp to 10 years
ICICI Bank6.60%7%7%7%
HDFC Bank6.85%7%7%6%
Axis Bank7.10%7%7%7%

Some of these key banks also offer savings account options which can help you earn FD-like interest rates. Post offices also offer fixed deposits.
Source: NDTV Profit