FD Interest Rate: As you all know that the Reserve Bank of India (RBI) has cut the repo rate by 50 basis points. At the same time, this may continue in the coming time as the rate cut was seen as the beginning of the rate cut cycle by the banking regulator.
Following this, a private bank has already cut its savings bank interest rate. Not only this, there are expectations that most private and government banks will soon start cutting their interest rates on FDs. Before the banks do so, it is also considered an opportune time to lock your savings in FDs.
However, experts also advise to avoid locking too much money in FDs as interest income on FDs is taxable and those in the highest tax bracket, i.e. 30 per cent, effectively get less than 5 per cent of their interest income on FDs when the interest offered is 7 per cent.
However, if you are planning to invest a part of your portfolio in FDs for one year, these are the banks and their interest rates.
FD Interest Rates on One Year Deposit
HDFC Bank: The largest private bank offers 6.6 per cent and 7.10 per cent interest to general and senior citizens on one-year FD deposits.
ICICI Bank: This private lender offers 6.7 per cent and 7.20 per cent interest to general and senior citizens on one-year FD deposits.
Kotak Mahindra Bank: This private bank offers slightly higher interest rate of 7.10 per cent to general citizens and 7.6 per cent to senior citizens on 1-year FD deposits.
Federal Bank: It offers 7 per cent and 7.5 per cent interest to general citizens and senior citizens on 1-year FD deposits.
Bank of Baroda: This bank gives 6.85 percent interest to general citizens and 7.35 percent interest to senior citizens on 1 year FD.
Union Bank of India: This government bank gives 6.8 percent interest to general citizens and 7.3 percent interest to senior citizens on one-year FD.
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