10 banks currently offering the highest interest rates on fixed deposits. A fixed currency or a time deposit is very popular in our country because of the guaranteed profit they offer. And they are extremely easy to invest, come in many words and involve a high level of investment. However, 10% TDS is deducted by the bank if the interest rate on all its FDs exceeds Rs 40,000 per annum. This limit is Rs 50,000 for adults.
That said, 20% TDS applies if you do not enter your PAN card details in the bank. But no TDS applies if the investor’s total annual value is less than the minimum tax of Rs 2.5 lakh, which can be deducted by sending Form 15H (if you are an adult citizen) or 15G (if you are not a senior citizen) to the bank, according to BankBazaar.
However, with the Reserve Bank of India leaving the repo rate unchanged at about 4% for almost a year now to combat the economic downturn of the Covid-19 scourge, most banks have reduced fixed deposit interest rates. This has been a source of concern for many risk-free investors as big citizens who rely heavily on their FD recovery not only to achieve their financial goals but also to finance their daily expenses.
In fact, most banks currently offer interest rates of 4.25% -5.75% per annum on standard FDs of less than Rs 1 crore. Senior Citizens get the preferred rates by 50 points above and above the standard FD levels. However, there are a few banks that still offer high interest rates on their FDs up to 7.51% per annum.
Investors may consider investing a portion of their investment in a fully-fledged risk assessment, and, if doing so is in line with their return expectations, risk tolerance requirements and debt, according to BankBazaar.
So, if you want to get a higher than average profit from FDs, here is a list of the top 10 banks currently offering the highest interest rates in the country. Note, all prices listed in the table below for standard FDs (for non-citizen citizens) amount to less than Rs 1 crore.
10 Banks Currently Offering the highest interest rates for FD
Disclaimer: Data was collected from the relevant banks’ banks on April 2, 2021. All standard deposit interest rates are less than Rs 1 crore. Compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.
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