Some fixed deposits also offer the benefit of income tax deduction.

Bank fixed deposits (FDs) are fixed-income instruments with a guaranteed rate of return on investments. Investing in a fixed deposit is secure because the returns are fixed across predetermined, specific periods of time. Some fixed deposits also offer the benefit of income tax deduction. However, bank fixed deposits which come with a premature withdrawal facility do not offer income tax deduction benefits. Fixed deposit accounts which do not offer a premature withdrawal facility offer this benefit but have a lock-in period.

Top lenders like State Bank of India (SBI), ICICI Bank and HDFC Bank offer the option of creating a fixed deposit account. Interest rates on fixed deposits vary according to separate maturity baskets across different banks



Given below are interest rates offered by SBI, ICICI Bank, HDFC Bank, Bank of Baroda and Canara Bank on fixed deposits up to Rs 1 crore:

State Bank of India (SBI):

The following FD interest rates are applicable on deposits below Rs 1 crore, according to the bank's website - sbi.co.in:



Tenors Revised For Public w.e.f. 28.11.2018 Revised for Senior Citizens w.e.f. 28.11.2018 7 days to 45 days 5.75 6.25 46 days to 179 days 6.25 6.75 180 days to 210 days 6.35 6.85 211 days to less than 1 year 6.4 6.9 1 year to less than 2 year 6.8 7.3 2 years to less than 3 years 6.8 7.3 3 years to less than 5 years 6.8 7.3 5 years and up to 10 years 6.85 7.35 (Source: sbi.co.in)

ICICI Bank

The following FD interest rates are applicable on deposits below Rs 1 crore, according to the bank's website - icicibank.com:

Maturity Period Interest rates (per annum) Term deposits of less than Rs 1 crore New rates (with effect from November 15) Increase in basis points (bps) 7 days to 14 days 4.00% - 15 days to 29 days 4.25% - 30 days to 45 days 5.50% - 46 days to 60 days 6.00% 25 bps 61 days to 90 days 6.25% 25 bps 91 days to 120 days 6.25% 25 bps 121 days to 184 days 6.25% 25 bps 185 days to 289 days 6.50% - 290 days to less than 1 year 6.75% - 1 year to 389 days 6.90% 15 bps 390 days upto 2 years 7.10% 10 bps 2 years 1 day upto 3 years 7.50% 25 bps 3 years 1 day upto 5 years 7.25% - 5 years 1 day upto 10 years 7.00% - 5 years (80C FD) 7.25% -

HDFC Bank

The following FD interest rates are applicable on deposits below Rs. 1 crore from November 6, 2018, according to the bank's website - hdfcbank.com: