SBI vs HDFC bank: Where will regular and senior citizens get more benefit on FD of Rs 5 lakh for 5 years between two big banks of government and private sector, SBI and HDFC Bank?
SBI vs HDFC bank: Term deposits or fixed deposits (TDs/FDs) of banks are one of the popular investment options in the country. In these, the depositor does not have market risk and he gets a fixed income with interest after the fixed period. Let us know where regular and senior citizens will get more benefit on FD of Rs 5 lakh for 5 years in two big banks of government and private sector, SBI and HDFC Bank.
SBI FD rates 2024
SBI is giving 6.5 percent interest annually on 5 year FD to regular customers. For senior citizens these rates are 7.50 percent. These interest rates are applicable on deposits of less than Rs 2 crore from December 27, 2023.
According to SBI FD Calculator, if a regular customer makes an FD of Rs 5 lakh, he will get Rs 6,90,209 on maturity. That means, the interest income will be Rs 1,90,209. On depositing Rs 5 lakh, a senior citizen will get Rs 7,24,974 on maturity. In this, there will be a guaranteed income of Rs 2,24,974 from interest.
HDFC Bank FD rates 2024
HDFC bank is giving 7 percent interest annually on 5 year FD to regular customers. For senior citizens these rates are 7.50 percent. These interest rates are applicable for deposits of less than Rs 2 crore from 9 February 2024.
According to HDFC FD Calculator, if a regular customer makes an FD of Rs 5 lakh, he will get Rs 7,07,389 on maturity. That means, the interest income will be Rs 2,07,389.
On depositing Rs 5 lakh, a senior citizen will get Rs 7,24,974 on maturity. In this, there will be a guaranteed income of Rs 2,24,974 lakh from interest.
Tax Benefits: Deduction up to Rs 1.5 lakh
If you make an FD of 5 years in any bank, then you get the benefit of tax deduction under section 80C. In this, tax deduction can be claimed on investment up to a maximum of Rs 1.50 lakh in a financial year. There is a lock in period of 5 years. This period can extend up to 10 years.
According to income tax rules, however, the interest received from FD is taxable. If the interest received on FD/TD in a financial year is more than Rs 40,000, then TDS (Tax Deduction at Source) is deducted. This limit for senior citizens is Rs 50,000. If a person’s income is less than the taxable limit, then he will have to fill Form 15G and 15H and request the bank not to deduct TDS on FD/TD.
Form 15G is for those whose age is less than 60 years. The limit of tax exemption for taxpayers up to 60 years is Rs 2.5 lakh. On the other hand, Form 15H is for people aged 60 years and above.
(Note: FD interest rates have been taken from the official websites of banks.)
