Winning Bizness Desk
Mumbai. HDFC Bank has increased interest rates on fixed deposits (FDs). Now the customers of this bank will get more interest on FD. HDFC has increased the interest rates on FDs above Rs 2 crore and less than Rs 5 crore. According to the official website of HDFC, the new interest rates have come into effect from 25 August 2022.
Ranging from 3.50% to 6.10%
Now you will get interest ranging from 3.50% to 6.10% on making FD in HDFC Bank. RBI had earlier this month increased its repo rates by 50 basis points (bps). Because of this HDFC Bank has increased FD rates. Last week, HDFC Bank increased the interest rates for FDs below Rs 2 crore. Before HDFC and Indian Bank, SBI, PNB and ICICI Bank also increased interest rates on FDs. These three banks had increased the interest rates on FDs of less than Rs 2 crore. Now you will get interest from 2.75% to 6.10% on making FD in ICICI Bank.
Tax is also to be paid on the interest earned from FD
On the other hand, you are getting a maximum 5.75% interest on making FD in PNB Bank. If you make FD in SBI, then you will get interest from 2.90 to 5.65. According to this, both HDFC and ICICI Bank are giving the highest interest of 6.10% on FD. If the interest received on bank FD in a financial year is less than 40 thousand rupees, then no tax will have to be paid on it. This limit is for people below 60 years of age. At the same time, above 60 years of age, that is, income up to 50 thousand rupees from FD of senior citizens is tax free. 10% TDS is deducted on income above this.
Tax exemption is available on 5 years FD
You also get income tax exemption by investing in tax saving FDs for 5 years. You do not have to pay any tax on the interest as well as the principal amount deposited in it. However, if the interest earned on your FD in any one financial year is more than Rs 10,000, then TDS will be deducted at the rate of 10%.