Bank Fixed Deposit (FD): Interest Rate, Lock-In Period, Other Details

Bank fixed deposits (FDs) are very popular among investors looking for a guaranteed return from their investments. Leading banks like State Bank of India (SBI), HDFC Bank, ICICI Bank, among others offer the facility of opening a fixed deposit. From 7 days to 10 years, bank fixed deposits come with different maturity periods. Investors can opt for a monthly, quarterly and annual interest payout. He/she can also keep the entire amount as well as the interest income fixed to receive the proceeds on the FD investment at the time of maturity. Before creating an FD, one can always check the amount of interest that will accrue on the FD investment. Most banks offer this facility on their websites.

(Also read: Senior Citizen Savings Scheme Vs Public Provident Fund Scheme)

Given below are the latest interest rates offered by SBI, HDFC Bank, ICICI Bank, UCO Bank on fixed deposits:

State Bank of India

The following FD interest rates are applicable on deposits below Rs. 1 crore, according to the bank's website - sbi.co.in:

HDFC Bank

The following FD interest rates are applicable on deposits below Rs. 1 crore with effect from November 6, 2018 according to the bank's website - hdfcbank.com:

ICICI Bank

The following FD interest rates are applicable on deposits below Rs. 1 crore, according to the bank's website - icicibank.com:

UCO Bank

The following FD interest rates are applicable on deposits below Rs. 1 crore, according to the bank's website - ucobank.com:

Bank FD accounts with a lock-in period of five or 10 years are eligible for deduction in income tax under Section 80C of the Income Tax Act. In the interim Budget for 2019-20, the government proposed to raise the tax deducted at source (TDS) threshold on interest earned on bank and post office deposits from Rs. 10,000 to Rs. 40,000. The proposed TDS hike will come into effect from April 1, 2019.