Latest FD Interest Rates: SBI Vs HDFC Bank Vs ICICI Bank Vs Bank Of Baroda

Fixed deposits or term deposits offered by banks are popular among customers because of the simple reason that they fetch higher interest rates than other savings schemes. Another reason for the popularity of bank fixed deposits is the convenience with which they can be created. Banks offer online options to create fixed deposits. So these days creation of a bank fixed deposit does not even require the customer to physically visit a bank. Also fixed deposit interest rates are fixed over specific tenures. Thus, your income on fixed deposits is guaranteed even in volatile times.

Besides, fixed deposit interest rates are higher than savings accounts'. Normal savings accounts offer interest rates between 3-4 per cent usually. Fixed deposits, however, offer much higher interest rates than savings accounts.

However, income earned of fixed deposits that is, the interest accrued on fixed deposits, is taxable. Fixed deposit interest is tax-free until a certain threshold, after which it is charged as per the current guidelines of the Income Tax Act. After the interest earned exceeds Rs 10,000, tax is deducted at source. TDS or tax deducted at source is deducted even if the fixed deposit amount has not yet been paid to the customer.

A few exemptions are granted as per Section 80C of the Act but in that case, fixed deposit needs to be locked-in for a period of five or 10 years.

Given below are fixed deposit interest rates offered by State Bank of India (SBI), HDFC Bank, ICICI Bank, and Bank of Baroda (BoB):

Fixed deposit interest rates of State Bank of India (SBI) (Below Rs 1 crore)

The following fixed deposit interest rates came into effect on May 28, said SBI.

Fixed Deposit interest rates of HDFC Bank
Domestic / NRO / NRE Fixed Deposits
The following fixed deposit interest rates are applicable from July 6, 2018:

(Also Read: Fixed Deposit Interest Rates Of This Bank Are Better Than SBI's)

Fixed deposit interest rates of ICICI Bank

Interest rates on Domestic, NRO & NRE deposits (Less than Rs 1 crore)

(Also Read: Interest Rates On Fixed Deposits, Recurring Deposits, Savings Accounts Of SBI, ICICI Bank, HDFC Bank)

Fixed deposit interest rates of Bank of Baroda (BoB)

For Domestic & NRO fixed deposits [Per Annum] [Fresh & Renewal] [Callable] (ROI in %)
- Below Rs. One Crore, according to bankofbaroda.com:

Company fixed deposits offer much better returns than bank fixed deposits but are also riskier than bank FDs.

Small finance banks' fixed deposit interest rates are as high as 9 per cent.