Union Minister Piyush Goyal on Friday proposed to increase the limit for tax deduction at source (TDS) on interest income from Rs 10,000 to Rs 40,000 per annum. The proposal will benefit senior citizens and small depositors who depend upon income from interest on deposits in banks and post offices, Mr Goyal said while presenting the Budget. With this announcement, investors are likely to get more returns from their fixed deposit (FD) investments. Fixed deposits (FDs) are secure investment avenue offered by banks, non-banking financial companies and post offices.The interest rates on fixed deposits (FDs), which are revised from time to time, vary according to the tenor of a fixed deposit.
Given below are the latest interest rates offered by SBI and post office on fixed deposits:
SBI offers maturity period ranging from seven days to ten years for fixed deposits. The following FD interest rates are applicable on deposits below Rs. 1 crore, according to the bank's website - sbi.co.in:
Post Office
Post office FD account offers interest rates across four maturities: one year, two years, three years, and five years. Given below are the FD interest rates offered by post office as mentioned on India Post's website- indiapost.gov.in:
In a post office FD account, interest is payable annually but is calculated quarterly.
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