Highest FD Rate latest News: Many banks have revised the interest rates of fixed deposits in the month of May. Some banks have increased the interest rate while some banks have reduced it. Recently Bank of India (BOI) has increased the interest rate of fixed deposits.
Yes, after increasing the interest rate of FD by Bank of India, now the bank has given the maximum interest rate for FD. Bank of India currently offers 7% interest rate on FDs of 1 year to general citizens.
New interest rate of bank of india
7 to 45 days: 3.00 percent interest rate
46 to 179 days: 4.50 percent interest rate
180 to 269 days: 5.00 percent interest rate
270 to 1 year: 5.50 percent interest rate
1 year: 7.00 percent interest rate
Tenure of more than 1 year to less than 2 years: 6.00 percent interest rate from 2 years
Tenure less than 3 years: 6.75 percent interest rate
Tenure from 3 years to less than 5 years: 6.50 percent interest rate
5 years to 10 years: 6.00 percent interest rate
Additional interest rate for senior citizens
Generally, almost all banks offer higher interest rates on fixed deposits to senior citizens. Similarly, Bank of India also offers additional interest rate to senior citizens.
Bank of India offers an interest rate of 0.50 per cent to senior citizens in addition to the interest rate offered to general citizens on FDs of less than 3 years duration. Bank of India offers an interest rate of 0.75 per cent to senior citizens in addition to the interest rate offered to general citizens on FDs with a tenure of more than 3 years.
Tax on FD interest rate
The interest earned from FD is fully taxable. Whatever interest you earn on FD in a year gets added to your annual income. Your tax slab is decided on the basis of total income.
Interest income earned on fixed deposits is treated as “income from other sources”. Also charged under Tax Deducted at Source or TDS. TDS is deducted when your bank deposits your interest income into your account.
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