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SBI vs HDFC Bank FD Rates 2024: Term deposits or fixed deposits (TDs/FDs) are a popular and traditional investment option in the country. Recently, some banks including SBI, HDFC have changed the interest rates on deposits with select maturities. For example, HDFC Bank has increased the interest rate by 20 basis points (0.20%) on FDs ranging from 3 years 1 day to 5 years. Similarly, SBI had increased the interest rates on deposits ranging from 46 days to 1 year. Let us know where regular and senior citizens will earn more on an FD of Rs 10 lakh for 5 years in SBI and HDFC Bank.
SBI FD rates 2024: How much will you earn on ₹10 lakh in 5 years?
SBI is giving 6.5 percent annual interest on 5-year FD to regular customers. For senior citizens, these rates are 7.50 percent. The new interest rates of the bank will be applicable on deposits of less than Rs 2 crore from May 15, 2023.
According to the SBI FD calculator, a regular customer will get a total of Rs 13,80,419 on an FD of Rs 10 lakh in 5 years. Out of this, Rs 3,80,419 will come from interest.
On the other hand, senior citizens will get a total of Rs 14,49,948 in 5 years on depositing Rs 10 lakh. Out of this, Rs 4,49,948 will come from interest.
HDFC Bank FD Rates 2024: How much you will earn in 5 years on ₹10 lakh
HDFC Bank is offering 7.20 per cent annual interest on 5-year FDs to regular customers. For senior citizens, these rates are 7.70 per cent. These interest rates are applicable on deposits of less than Rs 2 crore from June 10, 2024.
According to the HDFC FD calculator, regular customers will get a total of Rs 14,28,747 on an FD of Rs 10 lakh in 5 years. Out of this, Rs 4,28,747 will come from interest.
On the other hand, a senior citizen will get a total of Rs 14,64,247 in 5 years on depositing Rs 10 lakh. In this, you will get Rs 4,64,247 from interest.
Tax benefits: Deduction up to Rs 1.5 lakh under 80C
Under Section 80C, you can claim a tax deduction of up to Rs 1.50 lakh in a financial year on a 5-year FD in a bank. This claim can be made only in the old tax system. A 5-year FD has a lock-in period of 5 years. This period can be extended to 10 years.
However, as per Income Tax rules, interest earned from FD is taxable. If the interest earned on FD/TD in a financial year exceeds Rs 40,000, then TDS (tax deduction at source) is deducted. For senior citizens, this limit is Rs 50,000. If a person's income is below the taxable limit, then he has to request the bank not to deduct TDS on FD/TD by filling Form 15G and 15H.
