look news india
Bank FD: Indians invest a lot of money in bank FDs. It remains a popular investment option due to good interest and no risk of losing money. Due to the increase in repo rate by the Reserve Bank of India, FD interest rates in India have now become quite attractive. However, the Monetary Policy Committee has kept the repo rate steady in its last few meetings. Still, some banks are increasing interest rates on FD to attract customers. Now the name of IDFC First Bank has also been added to this list. The bank has also announced to give higher interest on FD (IDFC FIRST Bank FD Price Hike). The new interest rates have become effective from March 21.
After the change in interest rates, now IDFC First Bank will give 3.0 percent to 8.0 percent annual interest on FD to common citizens. At the same time, the bank is giving 0.50 percent more interest to senior citizens than ordinary citizens. In such a situation, the bank will give annual interest ranging from 3.50 percent to 8.50 percent to senior citizens. Maximum interest is available on FD with a tenure of 500 days. There has been a change in interest rates on FDs of less than Rs 2 crore.
IDFC First Bank FD Rates
The bank is giving interest at the rate of 3 percent per annum on FD of 7 to 14 days. You will get 3 percent interest even if you make FD for 15 to 29 days and 30 to 45 days. The bank is also offering interest at the rate of 4.50 percent on fixed deposits of 46 to 90 days and 91 to 180 days. The bank will give 5.75 percent interest on FDs of tenure of 181 days to less than one year. On making FD for one year, you will get 6.50 percent interest. On FDs with a duration of one year, one day to 499 days, 7.50 percent interest will be given and on FDs with a duration of 500 days, general customers will get 8 percent interest and senior citizens will get 8.50 percent interest.
Tax has to be paid on the interest received from FD also.
The interest received from FD is fully taxable. Whatever interest you earn on FD in a year is added to your annual income. Interest income earned on FD is considered “income from other sources”. If your income is less than Rs 2.5 lakh in a year then the bank does not deduct TDS on fixed deposits.