If you’re someone looking to invest your money safely, fixed deposits (FDs) are a great choice! Some private sector banks are currently offering really good interest rates on FDs, especially for amounts below Rs 3 crore. Here’s a friendly list of banks that offer interest rates as high as 8.05% for FDs that last one year. This information is perfect for regular people who are younger than 60.
Here’s What You Should Know:
– Bandhan Bank: Offers the highest rate at 8.05%.
– IndusInd Bank: Offers 7.75% interest.
– RBL Bank: Gives you 7.50%.
– Karnataka Bank: Offers 7.25%.
– YES Bank: Also gives 7.25%.
– DCB Bank: Offers 7.10%.
– Kotak Mahindra Bank: Offers 7.10%.
Total Interest Rates Per Bank:
– Bandhan Bank 8.05%
– IndusInd Bank 7.75%
– RBL Bank 7.50%
– Karnataka Bank 7.25%
– YES Bank 7.25%
– DCB Bank 7.10%
– Kotak Mahindra Bank 7.10%
How is FD Interest Taxed?
When you earn money from fixed deposits, it is taxable. You need to share this income on your tax return. If you earn more than Rs 40,000 a year (or Rs 50,000 if you’re a senior citizen), your bank will automatically take out some tax called TDS at 10%.
For example, if your FD interest is Rs 50,000, the bank will take away Rs 5,000 for tax. You’ll need to report the full Rs 50,000 in your tax return and can claim back the Rs 5,000 that was taken out.
If your total income is below Rs 2.5 lakh, the bank won’t take any TDS from you. To avoid TDS when your income is low, just fill out Form 15G or 15H and give it to the bank!
