A fixed deposit (FD) allows you to put money aside for a set period of time (tenure) and earn a predetermined rate of interest. A fixed deposit typically earns more interest than a conventional savings account until the term expires.
Remember that the interest rate on a fixed deposit is not the same for all tenures. Choosing the longest term offered does not guarantee you the best interest rate. Check the interest rate table, which is normally available on the bank’s website, and choose the tenure that gives you the highest compound interest rate.
FD interest rates with 1 year tenor
| Bank Name | 1 Year | Qly Compound Return |
| RBL Bank | 6.25 | 10639.80 |
| Indusind Bank | 6.00 | 10613.64 |
| Bandhan Bank | 5.75 | 10587.52 |
| IDFC First Bank | 5.75 | 10587.52 |
| DCB Bank | 5.55 | 10566.66 |
FD interest rate with 2 year tenor
| Bank Name | 2 Year | Qly Compound Return |
| Indusind Bank | 6.50 | 11376.39 |
| RBL Bank | 6.50 | 11376.39 |
| Bandhan Bank | 6.25 | 11320.54 |
| DCB Bank | 6.25 | 11320.54 |
| IDFC First Bank | 5.75 | 11209.55 |
Is your FD safe with bank?
Your deposits are covered up to Rs 5 lakh in insurance. Most of the banks are governed by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a Reserve Bank of India (RBI) subsidiary that insures deposits and provides credit guarantees.
When deposit matures
You can reinvest the remaining balance in a new deposit, transfer the funds to your savings account, or merely transfer the interest to your savings account and reinvest your initial investment in a new deposit.
Implications of booking a Fixed Deposit without PAN?
According to the Kotak Mahindra bank, in the absence of PAN, following are the implications for customers:
- TDS will be recovered at 20% or the applicable higher rate (as against 10%)
- NO TDS credit from the Income Tax department
- NO TDS credit from the Income Tax department
- Form 15G/H and other exemption certificates will be invalid and TDS at higher rates will apply
