Bank FD: Indians invest a lot of money in Bank FD. It remains a popular investment option because of good interest and no risk of losing money. Due to increase in the 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 stable in its last few meetings. Still, some banks are increasing FD interest rates 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 Rate 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 to ordinary citizens on making FD. At the same time, the bank is offering 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. Changes in interest rates have been made 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 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.
