Everything Deposit
 

Fix Deposit (FD) is one of the safest financial assets to invest the money. Generally, Senior Citizens plan to invest in Fix Deposits mainly because of two reasons. Firstly, the surplus savings present in their bank accounts don’t yield enough rate of interest, and secondly, the principal amount invested in FD’s remains safe as compared to that inequity. Also, if the right bank FD policy is chosen – subject to tenure, then returns assured are higher than most of the investments.

For Senior Citizens, the interest on fixed depositis 0.50% higher. The minimum tenure for a fixed deposit is 7 days, while 10 years or beyond is the maximum. Banks offer a various rate of interests depending on the tenure and amount preferred by the senior citizen investor.

Recently developed section 80TTB of the Income Tax Act has special provisions for the senior citizens too. Deduction of Rs. 50,000 can be claimed from the income generated by interest on fixed deposits before paying the taxes. Also, after submitting Form-15H to the bank, senior citizens are exempted from deduction of 10% TDS up to the interest of Rs 50,000 in one year.

If we look at the FD interest rates for senior citizens, then all banks offer different interest depending on the period of investment. Therefore, it is essential to know which bank is paying the highest rate of interest amongst the other banks under RBI.

  1. According to a survey, most of the senior citizens do multiple FDs of a different bank in ascending tenure to avoid TDS and other taxes. In this methodology of investing, it becomes essential for them to choose a bank FD which given maximum interest for tenure less than a year. Lakshmi Vilas Bank offers an interest of 8.25% for 331-365 days and 8.15% for 181-330 days. Whereas, Ratnakar Bank (RBL Bank) yields 8.15% interest for 241-365 days. Both the banks are private sector banks and regulated by RBI.
  1. Senior citizens have an ideology to invest only for 1-2 years because of the uncertainty of life. Under such a state of mind, again having a fixed deposit in Lakshmi Vilas Bank is profitable. The bank offers 9% interest on fixed deposit for 450 days for the Indian senior citizens. Apart from that, IDFC First Bank and DCB Banks also offers attractive interest of 8.75% and 8.65% for 731 days and 18 months respectively.
  1. Investors who manage the portfolio of senior citizens often invest in FD’s extending for 2-5 years. DCB Bank and Ratnakar Bank (RBL Bank) are most profitable in this case. DCB Bank gives 8.75% interest for 36 months, while FD done in RBL Bank for 24-36 months offers 8.55% rate of interest.
  1. Long term investment in fixed deposits up to 10 years doesn’t show an attractive figure of interest. However, the overall quantitative profitability of interest is more than short-term FD investment. A newly established private sector banking company in 2015, Bandhan Bank offers 8.25% rate of interest for 2-7 years. However, if the investment period is up to 120 months, then both Lakshmi Vilas Bank and Ratnakar Bank (RBL Bank) offers 8.10% interest.
  1. Not many banks offer fixed deposits for a tenure of 20 years. However, Ratnakar Bank (RBL Bank) and IDBI Bank give 7.70% and 6.50% as FD interest rates for senior citizens for up to 20 years.
  1. Small Finance Banks give 0.75% more interest to senior citizens compared to 0.50% in regular banks. In 2015, RBI licensed ten Small Finance Banks, and these banks offer substantially more interest rates compared to fixed deposits of other banks in the country.
  • A senior citizen investing in a fixed deposit of Jana Small Finance Bank for 1 year or less than a year is liable for 9.10% rate of interest.
  • Investing in fixed deposits of Utkarsh Small Finance Bank and Fincare Small Finance Bank for 2 years returns 9.50% interest.
  • A 3-year fixed deposit investment in Fincare Small Finance Bank yield interest of 9.50%.
  • Jana Small Finance Bank gives an interest of 8.60% for 4-5 years.
  • A long-term investment in a fixed deposit of Capital Small Finance Bank for over 5 years gives 7.90% rate of interest.

Investing all the money post-retirement is a difficult decision, especially when you have so many options today in the market. The interest rates are also competitively placed. Two things which have to be taken into consideration:

  • The choice of a bank – This is important because you do not want to put your money in a bank which might find it difficult to give you the interest. Therefore it is important to note the CRISIL rating before investing. 
  • The rate of interest – as simple is it can get, you want to get the best for your money. Therefore, investing in a bank with the highest FD interest rates for senior citizens is as important as it can get. 

On the basis of senior citizen fixed deposit interest rates, these are our choice of banks if you wish to invest in an FD.

  1. DCB Bank is a cutting edge rising new age private area save money with 323 branches crosswise over 19 states and 3 association regions. It is a planned business bank managed by the Reserve Bank of India. DCB offers an assortment of Fixed Deposit plans to satisfy the necessities of its customers, for example, DCB Fixed Deposit Scheme, DCB Suraksha Fixed Deposit Scheme, DCB Tax Saver Fixed Deposit Scheme, and so forth. 
  2. Yes, Bank is India’s fourth-biggest private sector bank and was established in 2004. It is headquartered at Mumbai, Maharashtra. 
  3. IndusInd Bank is a part of the Hinduja Group and initiated tasks in 1994. It offers four kinds of Fixed Deposit plans to satisfy the speculation necessities of contributors crosswise over residencies. The plans, in particular, Indus Tax Saver Deposit Scheme, Indus Senior Citizen Deposit Scheme, Indus Deposit Plus Scheme, and Indus Sweep In/Out Deposit Scheme to enable people to spare a proportionate sum month to month. 
  4. SBI offers a wide scope of fixed store plans to standard people and senior residents both for a short and long residency. People can contribute and acquire appealing SBI fixed store rates on a few plans with different highlights and advantages. 
  5. RBL Bank was once in the past known as The Ratnakar Bank and is a business bank that is based in Kolhapur locale in Maharashtra. The Bank effectively settled its quality in the conditions of Maharashtra and Karnataka. It has extended to other states, for example, Punjab, Gujarat, Telangana, Andhra Pradesh, Tamil Nadu, Delhi NCR, Haryana, Madhya Pradesh, Rajasthan, and West Bengal.

So which of these to choose if you are looking for the highest FD rates?

The answer to your question depends on the duration for which you wish to make your FD. Banks tend to offer starkly different interest rates for a given time duration. So, here is our choice of banks on the based on how long you wish to make the FD for and highest FD interest rates for senior citizens

Under 1 year – RBL BANK

The best choice for you if your investment choice ranges anywhere between 15 days to 1 year is definitely RBL Bank. The interest rates are considerably higher than other banks, which average at around 5% per annum. 

15 to 45 days6.50
46 to 90 days7.50
91 to 180 days7.55
181 to 240 days7.55
241 to 364 days7.75

Between 12 Months 10 Days to 12 Months 20 Days – Indusland Bank

IndusInd bank, in this time period of investment, promises you an interest of 8.25% on the principal amount.  

Between 12 Months 10 Days to 12 Months 20 Days – Yes Bank

This is a very unique scheme for anyone planning for an investment for a year. For under a year, we suggest you choose RBL. But if you do not mind making an FD for a year and a few more days, you can get a higher interest rate of 8.35%. This is a wiser option if the extra 15 odd days do not matter to you. 

For complete 2 years – IDFC bank

IDFC Bank is our pick if your investment is for 2 years. It promises you a range-topping highest FD rate of 9% per annum for senior citizens. 

For Complete 3 years – DCB Bank

DCB bank gives you a return of 8.75% for an investment of 3 years. 

A leading Indian bank, the Bank of India is a financial solution stop to many people across the globe. By way of its attractive investment and deposit schemes, it has attracted many trusted customers through decades.

The Bank of India offers incredible interest rates and facilities on Fixed Deposit (FD) accounts. An FD is a long term savings option for people of all ages and professions.

Bank of India FD Interest Rates and Other Details:

Bank of India offers attractive FD schemes. Most of these have a higher than usual interest rate for senior citizens.

The minimum tenure of an FD account at Bank of India is 7 days while the maximum is 10 years. Customers may fix tenure according to their convenience. The bank’s FD interest rates are also different for different tenures and usually also vary according to the amount invested. The details of interest rates are as follows:

For deposits less than Rs. 10 crores:

·    A tenure of 7 days to 14 days warrants an interest rate of 5% for regular citizens. For senior citizens, these interest rates are also capped at 5%.

·    A tenure of 15 days to 30 days bring all citizens an interest rate of 5%.

·    For tenures with a minimum of 31 days and a maximum of 45 days, the interest 

rate is 5% for all citizens.

·    For tenures of 46 days to 90 days, the BOI FD rate is 5.5% for all citizens.

·    A tenure of 91 days to 179 days gives regular citizens an interest of 5.75%.

·    For a tenure of 180 days to 269 days, the bank’s FD interest rates are 6%.

·    A tenure of 270 days to less than a year will provide regular citizens with an interest rate of 6%.

·    For tenures of 1 year and above to less than 2 years, regular citizens receive an interest of 6.5%.

·    A tenure of 2 years and above to less than 3 years warrants an interest rate of 6.5% for regular citizens.

·    For a tenure of 3 years and above to less than 5 years, regular citizens receive an interest rate of 6.5%.

·    A tenure of 5 years and above but less than 8 years gives regular citizens an interest of 6.5%.

·    For a tenure of 8 years and above to a maximum of 10 years, regular citizens receive a BOI FD rate of 6.35%.

Senior citizens can receive additional interest, provided that they meet the following eligibility criteria as specified by BOI:

·    The period of deposit is 6 months or more.

·    The senior citizen is the first account holder and is above 60 years of age at the time of opening the FD account.

·    In case of term deposits, the additional interest rate is 0.5% of over and above the card rates on a deposit made of minimum Rs. 5,000.

Since FD’s are rigid, customers can withdraw the maturity amount only on the completion of their FD tenure. In case the customer withdraws any amount earlier, he/she will pay the penalty as stated below:

·    On deposits of less than Rs. 5 lacs, withdrawal on the completion of 12 months warrants no penalties.

·    For deposits of less than Rs. 5 lacs, withdrawal completed before the completion of 12 months from the date of the initiation of the deposit warrants a penalty of 0.5%.

·    Deposits of 5 lacs and above withdrawn prematurely lead to a penalty of Rs. 1%.

>> Documents:

To start an FD account at BOI, you will need the following documents:

·    Application form

·    Aadhar card or other KYC documents

·    Passport-sized photographs

·    Identity proof

·    Proof of Residence

·    PAN card

·    Other documents.

>> Calculation of Maturity Amount:

If you wish to open an FD account in the future, you will need some financial planning. One of the best ways to decide the deposit amount is to know the maturity amount based on the interest rate offered by BOI. To do this, you can use a BOI FD calculator. This calculator will ask you for details such as deposit amount, tenure, and interest and will predict the maturity amount for you.

It is a financial instrument used by banks that allows the customer to get a higher yield than a normal savings bank account. The investors get a higher rate of interest rate provided that there is a fixed maturity period after which they receive the revenue.

Let us talk about the features of Fixed Deposit Investments :

  • Market fluctuations do not affect interest rates.
  • At the end of the maturity period, the customer gets the principal amount as well as the interest earned so he/she gets a bigger amount in a net sum.
  • The maturity period depends on the customer he may vary it depending upon his/her needs like in yearly, half-yearly, etc.
  • The depositor gets a higher interest rate as compared to the savings account.
  • Premature withdrawal of the full or partial amount can be done.
  • The customer also gets tax benefits up to a certain amount.
  • It gives a higher Interest rate to the Senior Citizen.

Key points about Post Office FD scheme:

  • The minimum amount to be deposited in the Post Office is as low as 200INR.
  •  There is no upper limit for investment which means we can invest as much as we want.
  • The interest is calculated every quarter and the maturity periods available are 1year, 2year, 3year.
  • We can avail premature withdrawal after completion of 6months of the Maturity date.
  • Section 80 C of the Income Tax Act, 1961 allows the customer tax benefits too.
  • The accounts are transferable between post offices.
  • Both cash, as well as the check, can be used to deposit an amount.
  • Minors of age 10 and above can also have an FD account.
  • While creating the account you can also opt for nomination facility.

Some Requisites to have a post office TD account:

  • We need to attest a copy of the following documents along with the application.
  • Identity Proof : (one needs to have any one of these)
    • Adhaar Card
    • Ration Card
    • Driving License
    • Electoral Id
    • Post Office Id Proof
    • Government-issued Id Card
    • Pension Payment Order(if applicable)
    • Below Poverty Line (BPL) Card (if applicable)
    • MGNREGA Card (if applicable)
    • ID Card Issued by a verified Educational Institute.
    • Permanent Account Number (PAN) Card (for high risk and medium risk customers)
  • Residential Proof:
    • Passport 
    • Adhaar Card
    • Ration Card
    • Passbook Issued by any Bank
    • Salary Slip Issued By the Employer
    • Electricity or Telephone bill less than three months old
  • 1 recent color photograph of the applicant.

Calculation of Fixed Deposit:

The interest rate is calculated based on the amount of fixed deposit and the tenure for which it has been deposited. The interest calculated by the banks can be calculated by the formula given below.

A = P (1 + r/4/100) ^ (4*n) and A = P (1 + r/25)4n

Where,

  • A= Maturity Amount
  • P= Deposit Amount
  • n= Compound Interest Frequency
  • r = Rate of Interest

Calculation of FD based on the FD rates and amount can be a tricky job, so to ease up our burden there are numerous postal fixed deposit calculators available online.

Current FD rates at the Post Office:

The table below contains the details of the updated interest rates of the Post Office.

TENUREPost Office FD Interest Rates(p.a)
1year6.90
2years6.90
3years6.90
5years7.70

  • The highest interest rate given by the Post Office is 7.70% for a tenure of 5 years.
  • The interest rates are subject to change and this table shows the interest rate as updated on 24th July 2019.

How does an FD calculator work:

Let us learn stepwise how a postal fixed deposit calculator works

  • Step 1: Enter the following details in the respective columns
    • Principal amount 
    • Rate of Interest (Calculated as a percentage)
    • Tenor (Choose days months or years)
  • Step 2: From the frequency options given choose your plan for FD.
    •  Monthly
    • Quarterly
    • Half-Yearly
    • Annually
  • Step 3: Hover the cursor and click the submit button.
  • Step 4: The right-hand column will show you the following:-
    • Maturity Amount
    • Amount of interest earned

By following these steps and using different combinations of tenure and interest rates you can find the maturity amount which meets your expectations of the investment you want to make and accordingly decide your deposit for the Post Office Fixed Deposit Scheme.

Fixed Deposit is a term/time deposit an investor makes in a bank or a financial institution. Here, an investor invests a lump sum of money and locks it for a certain period to earn interest on it at a fixed rate. A fixed deposit is the safest and secure form of investment which provides an investor with good returns.

A fixed deposit matures after its tenure gets over and then you can withdraw the principal amount along with the interest amount. You can choose to break an FD before it matures, but you are obliged to pay certain charges or penalty fees for it.

The FD interest rates differ according to tenure. If the tenure is longer, you will get a higher interest rate. Hence, many people in our country prefer to invest in a fixed deposit.

Another benefit of an FD is that it is a tax saving investment. According to the income tax laws i.e., under section 80C of the Income Tax Act 1961, you can claim a tax deduction for investments up to Rs 1.5 lakh in tax-saving fixed deposits in a fiscal year. The amount invested is deducted from gross over-all income to attain a taxable income. 

Tax Saving deposits are offered by many banks and financial institutions. Tax saving deposits can be booked for a minimum period of 5 years and a maximum period of 10 years. The only condition for tax saving deposits is that no partial or premature withdrawal is permitted. For an FD, you can nominate a close friend or family person to withdraw your FD before or after maturity in the event of your death. Any redemption on maturity directly comes to your bank account just like other bank fixed deposits.

Tax Saving FDs interest rates.

Prominent Banks like SBI, HDFC, Axis, ICICI, and others offer a higher rate of interest on tax-saving fixed deposit schemes. Fixed deposits still top the charts for tax saving investment in spite of recent cuts in interest rates. Investing in an elastic and protected FD will help you to save tax on your yearly income. Banks propose different rates of interest for consistent investors, including individuals, senior citizens, NRIs, and bank staff. The FD interest rates differ depending on the diverse categories of applicants.

For your comfort, we have listed below interest rates offered by some banks on Tax saving FDs.

State Bank of India

They offer the applicants the tax saving FD with a lock-in period of 5 years. The customer can invest up to Rs 1,50,000 per year and claim benefits under section 80C of the income tax act. According to the SBI tax saving scheme, the interest rate of 6.60% is offered to general depositors, and an extra 0.50% of the rate is made available for senior citizens. The deposit value ranges from 1000 Rs to 1.5 lakhs. Investors can open this FD online as well as offline.

HDFC Bank

It also offers the lock-in period or tenure of 5 years. The bank gives 7.25% interest pa to consistent depositors and 7.75% to senior citizens. The deposit amount here ranges from Rs 100 up to 1.5 lakhs.

Axis Bank

Axis Bank provides us with two types of tax saver fixed deposits – the first providing for quarterly compounding/reinvestment of interest and the other providing for quarterly disbursement of interest to the selected active account of the investor. These fixed deposit schemes are for a tenure of 5 years beginning from the date of receipt. Axis Bank proposes an interest rate of 7.00% per annum for regular investors and 7.50% for older citizens.

ICICI Bank

The bank permits the depositor to make a minimum deposit of Rs. 10,000 and a maximum of Rs. 1,50,000 for 5 years. ICICI Bank provides us with a 7.25% interest per annum on a tax saver fixed deposit for general depositors and 7.75% for senior citizens.

Induslnd Bank

IndusInd Bank offers a 7.50% rate of interest on this scheme for normal citizens and 8.00% for senior citizens.

Deutsche Bank

It offers the highest rate of interest of 8.00% for both regular and senior citizens.

So, you must opt for a Tax saving fixed deposit as it helps you to plan for the future as well as in tax returns. It is the best option available to save income tax. 

In the event that you need to open a senior citizen fixed deposit, at that point you should be an occupant of India. NRI senior citizen also can open these FDs through NRE or NRO accounts. You additionally should be over the age of 60 years at the time of opening the fixed deposit. 

The investor more likely than not crossed 60 years old on the date on which he/she opens the individual term store account 

A few banks may permit clients who are over 55 years and have taken early retirement to apply for this kind of FD. This standard may change from bank to bank and are liable for specific terms and conditions.

These are a couple of banks that you ought to consider to put your cash if you are a senior citizen. 

Senior citizen fixed deposit interest rates:

BankBest Fixed Deposit Interest Rates* (in % p.a.) – 1 year3 years5 years
Senior CitizensSenior CitizensSenior Citizens
IndusInd Bank8.10%7.85%8.00%
DCB Bank7.50%8.75%8.25%
Kotak Mahindra Bank7.50%7.40%7.00%
YES Bank7.75%7.75%7.75%
ICICI Bank7.40%7.80%7.75%
HDFC Bank7.50%7.80%7.75%
SBI7.30%7.10%7.00%
RBL Bank8.40%8.10%8.10%
Axis Bank7.75%7.75%7.50%
DBS7.50%7.00%7.00%
IDFC Bank7.50%8.00%8.25%

From this table, it is clear that if your investment plan is for a year, then you should consider RBL bank for your FD. Further, if it is for 3 years, then prefer DCB bank and for 5 years, choose IDFC or DCB bank. But before choosing a bank to invest, make sure that you check the CRISIL ratings. 

As indicated by recently embedded segment 80TTB in the Income Tax Act, interest sum up to Rs 50,000 on deposits held with banks are exempted from taxes. This expense exclusion fills in as follows: A senior citizen can guarantee to the reason of up to Rs 50,000 premium salary earned from these substances as a conclusion from gross all out pay before the toll of assessment. 

Furthermore, no TDS will be deducted from the intrigue installments made up to Rs 50,000 of every one money related year. To stay away from the conclusion of TDS, a senior citizen can submit Form-15H to the bank.

On the basis of senior citizen fixed deposit interest rates These are our choice of banks if you wish to invest in an FD.

  1. DCB Bank is a cutting edge rising new age private area save money with 323 branches crosswise over 19 states and 3 association regions. It is a planned business bank managed by the Reserve Bank of India. DCB offers an assortment of Fixed Deposit plans to satisfy the necessities of its customers, for example, DCB Fixed Deposit Scheme, DCB Suraksha Fixed Deposit Scheme, DCB Tax Saver Fixed Deposit Scheme, and so forth. 
  2. Yes, Bank is India’s fourth-biggest private sector bank and was established in 2004. It is headquartered at Mumbai, Maharashtra. 
  3. IndusInd Bank is a part of the Hinduja Group and initiated tasks in 1994. It offers four kinds of Fixed Deposit plans to satisfy the speculation necessities of contributors crosswise over residencies. The plans, in particular, Indus Tax Saver Deposit Scheme, Indus Senior Citizen Deposit Scheme, Indus Deposit Plus Scheme, and Indus Sweep In/Out Deposit Scheme to enable people to spare a proportionate sum month to month. 
  4. SBI offers a wide scope of fixed store plans to standard people and senior residents both for a short and long residency. People can contribute and acquire appealing SBI fixed store rates on a few plans with different highlights and advantages. 
  5. RBL Bank was once in the past known as The Ratnakar Bank and is a business bank that is based in Kolhapur locale in Maharashtra. The Bank effectively settled its quality in the conditions of Maharashtra and Karnataka. It has extended to other states, for example, Punjab, Gujarat, Telangana, Andhra Pradesh, Tamil Nadu, Delhi NCR, Haryana, Madhya Pradesh, Rajasthan, and West Bengal.

These days fixed deposits are one of the most popular ways to save money. Fixed deposit interest rates are generally higher than other saving schemes. These are extremely low-risk investments with guaranteed returns. 

You can open an FD account at a bank. A post office. Or even at a qualified financial company. Here, in this article, we are going to be talking about the fixed deposit schemes for the Bank of Baroda. We are going to be talking about the Bank of Baroda FD interest rates. Tax benefits and TDS. And all the other relevant information.

What do you need to know? 

A fixed deposit is a very safe investment. Any FD interest calculation happens quarterly, which means that after every 3 months, the outstanding maturity amount becomes the principal amount. And then the new interest calculation happens over this new principal. 

To calculate the interest on your specific loan, you can use an interest rate calculator. There are a huge number of them available online.

You can avail the overdraft feature for 95% of your loan on any Bank of Baroda FD. Other features include premature withdrawal. But note that any premature withdrawal requires a withdrawal fee.

The minimum investment amount is Rs.1000. And there is no upper limit to this amount. The minimum investment tenure is of 7 days while the maximum is 10 years. 

Interest Rates 

The Bank of Baroda FD interest rates for Domestic & NRO Term Deposits [Per Annum] [Fresh & Renewal] [Callable] for amounts below Rs. 2 Crore are:

TenureInterest rates
7 days to 14 days5.25%
15 days to 45 days4.50%
46 days to 90 days4.75%
91 days to 180 days5.50%
181 days to 270 days6.25%
271 days & above and less than 1 year6.25%
1 year6.45%
Above 1 year to 400 days6.60%
Above 400 days and up to 2 Years6.55%
Above 2 Years and up to 3 Years6.45%
Above 3 Years and up to 5 Years6.45%
Above 5 Years and up to 10 Years6.45%

Now, this is just one of many such investment plans. To know about all the other plans, we recommend you visit their official website. 

One thing to remember is that the interest rates for senior citizens are 0.5% more than the stated interest rates. For example, the interest rate for an FD of amount Rs.1,00,000 is 6.45% for anyone below the age of 60. But for a senior citizen, it is 6.95%. 

How to calculate my benefits? 

You can use an Bank of Baroda FD Calculator to calculate all the information you need. Let’s take an example of Rs.1,00,000 to see what types of returns we get for all the different tenures:

Investment AmountTenureInterest rateMaturity AmountInterest Earned
Rs.1,00,0001 year6.45%Rs.1,06,608Rs.6,608
Rs.1,00,0002 years6.55%Rs.1,13,876Rs.13,876
Rs.1,00,0003 years6.45%Rs.1,21,162Rs.21,162
Rs.1,00,0004 years6.45%Rs.1,29,168Rs.29,168
Rs.1,00,0005 years6.45%Rs.1,37,703Rs.37,703
Rs.1,00,00010 years6.45%Rs.1,89,621Rs.89,621

So, we see that you can almost double your money if you invest for more than 10 years. Now in actuality, the interests generated will be a bit lower than the numbers shown here. That is because of the TDS deducted on the generated interests of the government.

Taxes 

The government deducts a TDS (Tax Deducted at Source) from the generated interest. There are several ways you could avoid these charges. Some of which are: 

  • Submit a 15G or 15H form, if applicable.
  • Opt for a Tax Savings FD under section 80C. In such an FD you cannot prematurely withdraw your money.

So, these were the basic pointers on the FD policies for the Bank of Baroda. To open an FD account, you can either by going to one of their branches or through their official website.

This article was just to give you all the relevant information. We highly recommend you go talk to an official at any of their branches before making any decision. And finally, be sure to read all the investment-related documents very carefully.

Fixed deposits are long-term investment options for people ready to save money for about 5 to 10 years. These require you to deposit a lump-sum amount in a bank account with a fixed interest rate, usually higher than that of a savings account.

Many banks in India offer Fixed Deposit schemes with varying interest rates. 

The tenure of the deposit is also variable from bank to bank. While most banks declare interest rates at the beginning of the financial year, interest rates can be altered anytime during the year by RBI or the concerned bank.

One of India’s largest banks, the Punjab National Bank offers many attractive fixed deposit options to people of all ages and professions. You can also use a PNB FD calculator to know the exact details about your deposit amount. The interest rate of all these varies as follows.

Punjab National Bank’s FD Rates:

The minimum amount that can be deposited in an FD account at PNB is Rs. 10,000 and the maximum is 99,99,000. The minimum tenure is 7 days and the maximum is 10 years. PNB also offers an auto-renewal feature for FD accounts. With this feature, your FD will automatically be renewed at the end of your tenure.

The highest PNB FD rate is 6.85% for youth and 7.35% per annum for senior citizens.

·        If you wish to start a short-term fixed deposit account, PNB will offer you tenure beginning at a minimum of 7 days and a maximum of 45 days for an interest rate of 5.75%. For senior citizens, this interest rate is 6.25%.

·        The PNB FD rate for tenures between 46 days to 364 days is 6.35%. Senior citizens get an interest rate of 6.85% for this tenure.

·        For an FD tenure of 1-3 years, the interest rate is 6.75%. Senior citizens receive an interest of 7.25% for this tenure.

·        If your FD tenure is between 3 years and 5 years, you will receive an interest rate of 6.25% on your deposit. For senior citizens, this interest rate is 6.75%.

The above are all interest rates for amounts less than Rs. 1 crore. If you wish to open an account with the deposit exceeding Rs. 1 Crore, the interest rates vary as follows:

·        For a tenure of 7 days to 14 days, the interest rate is 6% per annum.

·        For a minimum tenure of 15 days and a maximum tenure of 45 days, PNB offers a 6.25% interest rate.

·        For a tenure between 46 and 90 days, the interest rate offered is 6.55%.

·        If your tenure is between 91 days and 364 days, you will receive an interest rate of 6.5% per annum.

·        For a tenure of 1 year, PNB offers an interest rate of 6.75%

·        For an FD tenure of 555 days, the interest rate is 6.85%

·        An FD tenure of 1 to 3 years guarantees an interest rate of 6.5%

·        You will receive an interest rate of 6.25% per annum for a tenure between 3 to 5 years.

Punjab National Bank also offers special FD schemes that guarantee a higher rate of interest for deposits made for 333, 444 or 555 days. Apart from this, it also offers nan-callable deposit schemes and FD schemes for road accident victims. These are all titled as PNB Sugam Plus and PNB Uttam Schemes, along with the tenure in the title.

Other Details of an FD at PNB:

To be eligible for opening a Fixed Deposit account, you must be one of the following:

·        An Individual

·        A company

·        A minor with a guardian

·        An institution

·        An NRI

>> Documents:

To start an FD account at PNB, you will need the following documents:

·        Application form

·        Aadhar card or other KYC documents

·        Passport-sized photographs

·        Identity proof

·        Proof of Residence

·        PAN card

·        Form 60 or 61

>> Calculation of the Maturity Amount:

As an investor, you need to know how much you should deposit in an FD account. To get an idea of the maturity amount, you can always use a PNB FD calculator. This calculator will ask you for basic details of the amount deposited, tenure and the interest rate, and will accordingly calculate the final maturity amount for you.

Fixed deposits are a form of extremely low-risk investments. It’s like a loan that you give to a bank. The bank pays you an interest amount, which is compounded annually, quarterly, etc. It is the perfect investment option for passive investors. You are already aware of the interest rates. The deposit tenures. The return on investment. Everything.

There are several types of fixed deposits like FDs in government banks, a post office, private banks, and even private financial firms. All of them differ in slight ways. Here, in this article, we are going to be talking about post office fixed deposits.

General Information

First of all, there are no age limits for opening a post office FD. You can invest a minimum of Rs. 200. And, there are no upper limits to this principal amount. The tenure for such a deposit can lay anywhere between 1 to 5 years. Generally, this number is a lot higher for banks. These days you can get all the required information about any fixed deposit scheme by using a post office monthly income scheme calculator. These are fairly straightforward to use tool that gives you all the required information almost instantly.

Interest Rates

Post office fixed deposit interest rates change every financial year. Currently, interest rates are as follows:

PeriodRate
1yr.A/c 6.9%
2yr.A/c 6.9%
3yr.A/c 6.9%
5yr.A/c 7.7%

These are quarterly compounded interests, which means that after every 3 months, the outstanding maturity amount becomes the principal amount. And then the new interest calculation is done over this new principal. There are also annual, monthly, and many interests frequency policies.

Fixed Deposit Calculator

Now to get all the related information, you can use a post office monthly income scheme calculator. There is a huge number of them available on the internet. A simple google search will provide you with the said tool. The process of using this calculator is fairly simple. So, here are the steps:

  • Google the phrase “Post office Fixed deposit investment calculator” and pick one.
  • If there is an option for choosing your bank, choose Indian Post office.
  • Then pick the date of investment.
  • Enter the principal amount that you want to deposit.
  • Select the interest frequency.
  • For post office fixed deposits, it is quarterly.
  • Enter the interest rate.
  • Finally, enter the deposit tenure. Click on the “Calculate” button.

Now if you do everything correctly, the calculator will show you all the required information. As a test case, we are showing you the results for a principal amount of Rs. 1,00,000. This amount of investments are made for all the different available tenures. 

Investment AmountTenureInterest rateMaturity AmountInterest Earned
Rs.1,00,0001 year7%Rs.1,07,186Rs.7,186
Rs.1,00,0002 years7%Rs.1,14,888Rs.14,888
Rs.1,00,0003 years7%Rs.1,23,144Rs.23,144
Rs.1,00,0004 years7%Rs.1,31,993Rs.31,993
Rs.1,00,0005 years7.8%Rs.1,47,145Rs.47,145

Now, if you renew your fixed deposit, then after 5 more years you can almost double your money. Please note that the actual amounts will differ a bit from the numbers shown here. This is because of the TDS that is applied to the interest generated.

Taxes

As said earlier, a TDS (Tax Deducted at Source) amount is deducted from the interest generated. This TDS happens if the generated interest is more than Rs.10,000. You can claim this amount while filing a return if you don’t come under the income tax act. Plus, if you invest in a 5 year fixed deposit under Section 80C, you will not have to pay this amount.

How to Open a fixed deposit?

Currently, there are no online options for you to apply for an FD at your post office. Therefore, to open one, you have to go to your post office. You need to fill up a form and submit the required documents. Which are:

  • Your KYC
  • Identity Proof Address Proof
  • Bank Account Details
  • PAN Card.

Now, this article was just a way to give you all the relevant information. And guide you in the right direction. But we highly recommend you to go talk to your post office officials. And lastly, please make sure to read all the terms and conditions very carefully.

State Bank of India, formerly known as the Imperial Bank of India during the British Era is one of the oldest commercial banking institutions in our country. The Central bank of India (RBI) owns more than 50 % of the stakes of the SBI.

It is the largest bank in India with its branches spread out everywhere in the country including the rural and remote areas. It has been providing its banking services for a very long time now.

Almost every citizen of the country holds an account in this bank. A fixed deposit is a significant feature or service provided by this bank. Many customers have availed this service as it delivers promising returns.

What is a fixed deposit?

It is a financial instrument were an investor deposits a principal amount of money for a certain period or tenure at a fixed rate of interest. Fixed deposits fall under the category of term/time deposits. They are one of the safest and secure methods of investments.

When the tenure ends the FD matures, and you can withdraw your principal as well as the interest amount. FDs can be withdrawn prematurely, but you have to bear minimal charges or penalty fees.

Mostly people prefer investing in a fixed deposit rather than a savings account because FD offers a higher rate of interest. Banks also provide loans at varied rates in exchange for FD certificate.

The interest rate on FDs in the State Bank of India differs according to the maturity period. The longer the maturity period, the higher the rate of interest.

The SBI schemes offer short-term deposits with the shortest period consisting of just 30 days. It also offers medium and long-term deposit tenures, which range from 1 year to 10 years. State Bank of India also provides senior citizens with a senior citizen deposits facility here interest rate on FD is usually the highest. SBI interest rates range from 5.25% pa to 7.25% pa if compounded quarterly. For detailed information contact branch available near you.

There are several methods to calculate the maturity value or the interest rate of a bank. 

One popular method is to use the online FD calculators available on the internet. SBI fixed deposit calculator provides clients with accurate and error-free answers. It also helps the account holders to analyze the interest amount they will receive or earn with an FD.

How to use the calculator?

·   First, visit the fixed deposit calculator website.

·   Then, choose the type of FD from cumulative and non-cumulative.

·   Later, input the principal amount and the tenure of the investment period.

·   After, the information is filled, the calculator will automatically present you the maturity value that you will receive at the end of the maturity period and the interest rate you will get on your invested amount.

The formula used by the fixed deposit calculator is as follows,

MV = P * (1 + r )n

Where,

MV – Maturity value

P- Principal amount

r- Rate of Interest

n- number of compounding intervals since the date of deposit till the date of maturity

You can also choose to calculate manually through this formula, but due to its complexity and error occurring tendencies, many people choose to calculate directly through the available SBI fixed deposit calculator.

Things you must know before opening a Fixed deposit.

  • Deposit rates– In SBI to open an FD minimum amount required is RS 1000, and there is no limit for the maximum amount.
  • Tenure– In SBI, the minimum tenure is 6 months, and the maximum tenure is 10 years.
  • Reinvestment Option- State Bank of India offers its client a reinvestment option of the interest earned on an FD.

SBI fixed deposit Premature withdrawal charges.

It charges a penalty on the withdrawal of invested money before maturity up to Rs 5 lakhs. The

charge that the client has to bear is 0.50% of the principal amount. On the fixed deposits

which are above 5 lakhs penalty charged is up to 1%.

This penalty or charges are nothing when compared to the losses that one bears when investing in shares. Due to its remarkable returns, FDs are still considered a safe and protected investment by several people, and with SBI being the most trusted, safe and secure bank most people opt to open a fixed deposit account here.

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