Fixed deposits are investment instruments offered by banks where individuals can deposit their money for a certain duration and earn a higher interest rate as compared to a savings account. Generally, an individual can open an FD account for 7 days up to 10 years. Once the money is put into a fixed deposit account, it remains locked until the time of maturity.
Interest on fixed deposits is payable on a monthly, quarterly, half yearly or annual basis. If a customer chooses the monthly interest pay-out option, it must be noted that the interest offered by the bank is at a discounted rate. The interest, which gets accrued, is then re-invested and paid during the time of maturity with the principal amount. The interest rate on fixed deposits will differ on the basis of the tenure and amount.
Most of the banks that offer FD schemes have the ‘Fixed Deposit (FD) CalculatorFixed Deposit (FD) Calculator’ facility on their website, where users can check the amount they stand to receive at maturity.
Following the steps mentioned below will help one find the money that is payable by the bank once the FD matures:
Step 1 - Go to the bank’s official website.
Step 2 - Click on the option that leads to the Fixed Deposit (FD) Calculator page.
Step 3 - Enter the Amount of Deposit and choose Type of Customer, Type of Fixed Deposit (Monthly Pay-out in this case) and Tenure.
On submitting all the required details, the calculator will show the rate of interest and how much the potential investor stands to receive in the form of aggregate interest amount.
Following are the interest rates applicable on fixed deposit in India. Individuals are requested to reconfirm the rates from the respective bank’s website before making any financial commitments.
| Institution | Interest % P.A. | Period | Investment (Rs.) |
|---|---|---|---|
| Deutsche Bank | 8.00 | Above 1 year to 1.5 years | Less than Rs. 1 cr |
| IndusInd Bank | 8.00 | 1 year to below 1 years 2 months | Less than Rs. 15 lakhs |
| Bandhan Co-operative Bank | 7.65 | Above 18 months to less than 2 years | Less than Rs. 1 cr |
| Standard Chartered Bank | 7.50 | 18 Months to less than 21 months | Less than Rs. 1 cr |
| Standard Chartered Bank | 7.40 | 1 year to 375 days | Less than Rs. 1 cr |
| Kotak Bank | 7.40 | 390 Days (12 months 25 days) | Less than Rs. 1 cr |
| Bandhan Co-operative Bank | 7.35 | 1 year to 18 months | Less than Rs. 1 cr |
| Federal Bank | 7.30 | 1 year to 549 days | Less than Rs. 1 cr |
| HDFC Bank | 7.30 | 1 Year | Less than Rs. 1 cr |
| Kotak Bank | 7.30 | 365 days to 389 days | Less than Rs. 1 cr |
| HDFC Bank | 7.30 | 1 year 4 days | Less than Rs. 1 cr |
| Yes Bank | 7.15 | 18 Months 8 Days to 18 Months 18 Days | Less than Rs. 1 crore |
| Lakshmi Vilas Bank | 7.00 | 1 year to 499 days | Less than Rs. 1 crore |
| Dhanalakshmi Bank | 7.00 | 365 days to 499 days | Less than Rs. 1 crore |
| Canara Bank | 7.00 | 1 year | Less than Rs. 1crore |
| Tamilnad Mercantile Bank | 7.00 | Above 1 year to less than 20 months 20 days | Less than Rs. 15 lakhs |
| Standard Chartered Bank | 7.00 | 391 days to less than 18 months | Less than Rs. 1 crore |
| Standard Chartered Bank | 7.00 | 376 days to 390 day | Less than Rs. 1 crore |
| Punjab National Bank | 6.90 | 1 year | Less than Rs. 1 crore |
| ICICI Bank | 6.90 | 1 year to 389 days | Less than Rs. 1 crore |
| Bank of Baroda | 6.85 | Above1 year to 400 days | Less than Rs. 1 crore |
| Oriental Bank of Commerce | 6.85 | 1 year to less than 2 years | Less than Rs. 1 crore |
| DCB Bank | 6.85 | 12 Months to less than 18 months | Less than Rs. 1 crore |
| Vijaya Bank | 6.80 | 1 Year | Less than Rs. 1 crore |
| State Bank of India (SBI) | 6.80 | 1 year to less than 2 year | Less than Rs. 1 crore |
| Axis Bank | 6.75 | 1 year to less than 13 months | Less than Rs. 1 crore |
| Axis Bank | 6.75 | 15 months to less than 16 months | Less than Rs. 1 crore |
| J&K Bank | 6.75 | 1 years to less than 2 year | Less than Rs. 1 crore |
| Allahabad Bank | 6.75 | 1 year to less than 2 years | Less than Rs. 1 crore |
| Syndicate Bank | 6.70 | 1 year exact | Less than Rs. 1crore |
| UCO Bank | 6.65 | 1 year | less than Rs. 1 crore |
| Dena Bank | 6.65 | 365 days | Less than Rs. 1 crore |
| Corporation Bank | 6.50 | 445 days to 554 days | Less than Rs. 1 crore |
| Central Bank of India | 6.50 | 555 days | Less than Rs. 1 crore |
| Catholic Syrian Bank | 6.50 | 1 Year | Less than Rs. 1 crore |
| Indian Bank | 6.50 | Above 1 year to less than 2 years | Less than Rs. 1 crore |
| Indian Overseas Bank | 6.50 | Above1 year to less than 2 years | Up to Rs. 1 crore |
| Axis Bank | 6.25 | 18 months to less than 2 years | Less than Rs. 1 crore |
| United Bank of India | 6.00 | Above1 years to less than 2 years | Less than Rs. 1 crore |
| Citi Bank | 5.25 | 365 days to 400 days | Less than Rs. 1 crore |
| Citi Bank | 5.25 | 401 days to 540 days | Less than Rs. 1 crore |
| HSBC | 5.00 | 365 days | Less than Rs. 1 crore |
| Royal Bank of Scotland | 4.00 | 1 year to less than 2 years | Less than Rs. 1 crore |
(Source: www.moneycontrol.com/fixed-income/bank_fd_main.php#data)
Note - Fixed deposit interest rates are subject to change anytime as per Banks discretion.
The eligibility criteria for openings such deposits are the same as those of FDs with annual or quarterly interest pay-out. The documents required will include the application form along with KYC documents such as identity proof, address proof etc. Documents that serve as ID proof include passport, PAN card and Voter ID card, among others, while those that serve as address proof include telephone bill, passport and electricity bill, among others.
Fixed deposits are one of the most popular investment options in India. Some of the reasons that make it a preferred form of investment include:
The interest earned on fixed deposit is fully taxable as per the investor's tax bracket. To avoid TDS deduction on the interest earned, an individual can submit Form 15G (or Form 15H for senior citizens) to the bank. Form 15G and Form 15H are forms that one can submit for making sure that no TDS is deducted on income, if certain conditions are met. Senior citizens can claim a tax deduction of Rs. 50,000 on the interest from deposits, on the basis of the newly inserted Section 80TTB.
Can I get monthly interest on FD?
Yes, generally most banks provide the facility of monthly interest pay-outs on fixed deposit.
Can I make withdrawals from FD account with monthly interest?
Fixed deposits do provide the facility of premature withdrawals. However, the depositor will be required to pay a penalty to the bank.
What is better interest paid monthly or annually?
In case one chooses the monthly interest payment route, the interest that is payable is at a discounted rate. This means an individual will stand to earn slightly higher interest on fixed deposits with annual interest over that of monthly interest pay-outs.
How to check monthly interest on fixed deposits?
Most banking institutions have the ‘Fixed Deposit (FD) Calculator’ facility on their website. This calculator helps potential investors to find the monthly interest they stand to get on their deposit.
Is monthly interest on fixed deposits taxable?
Yes, the interest that is earned on fixed deposits is fully taxable.
Which bank gives monthly interest on fixed deposit?
Most banks provide the option of monthly interest on fixed deposit. SBI, Kotak Bank and Canara Bank are few such examples.
