Bank FD Rates: This private bank has increased the interest on FD, know how much interest you will get annually

IDFC First Bank FD Rates: Private sector IDFC First Bank has recently increased the interest on fixed deposits (FD). After this change made by the bank, 3 to 8 percent annual interest is being offered on FD to regular customers. At the same time, the bank is giving 0.50 percent more interest to senior citizens than the common citizens. That means senior citizens will get 3.50% to 8.50% annual interest on making FD in this bank. Let us tell you that the change in interest rates made by IDFC First Bank is for FDs of less than Rs 2 crore. The new rates have come into effect from March 21.

Take these precautions while getting FD

1- Choose the right tenure

Everyone wants to earn interest on FD, but while making FD, always look at your convenience first. It is important to choose the right tenure for FD. If you break the FD before it matures, you will have to pay a penalty.

2- Do not invest all the money together in one FD

Never invest all the money in a single FD. If you want to make a total FD of Rs 10 lakh, then make 8 FDs of Rs 1 lakh each and 4 FDs of Rs 50-50 thousand. With this, whenever you need money, you will be able to fulfill your needs by breaking one or two FDs and there will not be much loss.

3- There is tax on the interest received on FD.

Tax also has to be paid on the interest received from FD. Whatever interest you earn on FD in a year is added to your annual earnings. Your tax slab is decided on the basis of total income. Interest received on FD is considered as income from other sources. If you get less than Rs 40,000 interest in a financial year from all FDs then TDS will not be deducted. Whereas if the interest income is more than Rs 40,000 then 10 percent TDS will be deducted.