Several banks in India have revised their fixed deposit (FD) interest rates in April 2024. The highest FD interest rate offered currently is 9.25%.
Click here to know all Banks Saving Account Interest Rates in May 2024
In India, fixed deposits (FDs) are one of the most popular ways to save money as they provide a safe mode of investment, offer good returns, and are easy to open. In an FD, you put a lump sum in your bank for a fixed tenure at an agreed rate of interest. At the end of the tenure, you receive the amount you have invested plus the standard compound interest.
Currently, the highest interest rate offered on FDs is 9.25%. The below table is the list of 5 banks that have revised their FD interest rates:
| Bank | Regular Interest Rate | Interest Rate for Senior Citizens |
|---|---|---|
| ICICI Bank | Up to 8.75% | Up to 9.25% |
| HDFC Bank | Up to 8.50% | Up to 9.00% |
| State Bank of India | Up to 8.25% | Up to 8.75% |
| Axis Bank | Up to 8.50% | Up to 9.00% |
| Kotak Mahindra Bank | Up to 8.75% | Up to 9.25% |
It is important for investors to compare FD interest rates from different banks before actually investing in FDs. This helps you to get maximum returns on your investment.
Here are some of the factors that you should consider while comparing FD interest rates:
- Minimum and maximum deposit amount: The minimum and maximum deposit amount can vary from different banks.
- Tenure: The tenure is the period of time for which your money is deposited in the FD account. If you wish to withdraw your funds before the tenure ends, you may have to pay some additional charges to the bank.
- Premature withdrawal penalty: The premature withdrawal penalty is the penalty that you may be charged if you withdraw your money from the FD account before the tenure ends.
Here are some additional things to keep in mind about FD interest rates:
- FD interest rates are subject to change. The interest rates that are offered by banks today may not be the same in the future.
- FD interest rates are generally taxable. The interest that you earn on your FD will be taxed unless you opt for a tax-saver FD.
Summary
If you are considering investing in an FD, it is important to do your research and compare FD interest rates from different banks. You should also consider all of the other factors mentioned above in order to make the best decision based on your individual needs investment goals.
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