Banks Offering Fixed Deposit Rates Above 9% (2024)

Due to changes in RBI repo rates, banks in India are no longer offering interest rates of 9% and above on fixed deposits (FDs). However, most of the leading banks in India are offering an interest rate starting at 7.00% on FDs, also called term deposits.

These are an ideal investment option, especially for those who are looking for benefits like high liquidity, premature withdrawal facilities, nomination facility, loan/overdraft, etc.

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While it's possible to manually calculate your fixed deposit, it can prove challenging due to the numerous variables involved. These calculations are often laborious and time-consuming, leaving room for errors.

Utilizing a tool for fixed deposit calculations offers a simpler and more accurate alternative. A Fixed Deposit Calculator proves invaluable in this regard, providing precise figures instantly once the necessary data is entered.

The formula for calculating the maturity amount (M) of a fixed deposit is:

M = P+ P {(1 + i/100) t-1}

Here, P represents the principal, i is the interest rate per period, and t signifies the tenure. Similarly, you can determine the interest earned on a bank Fixed Deposit (FD) using mathematical formulas, akin to calculating the maturity amount.

FD Earnings Taxation

1. You can avail of the tax deduction benefit under Section 80C of the Income Tax Act by investing up to Rs.1.5 lakh in a tax-saver fixed deposit account.
2. This scheme offers assured returns while safeguarding your capital. However, it's important to note that the interest income generated from this account is fully taxable.

1. The tax liability depends on your total income for the financial year and the tax bracket you fall into, with interest income categorized under 'Income from Other Sources'.

1. Additionally, banks are mandated to deduct tax at source if the interest earned exceeds Rs.40,000 in a financial year across all accounts held with the bank. A Tax Deducted at Source (TDS) certificate will be issued to confirm the deduction details.

Fixed Deposits with Tax Savings

1. Under the Income Tax Act, individuals and Hindu Undivided Families (HUFs) are eligible to invest in tax-saving FD schemes. These FDs typically have a lock-in period of 5 years, prohibiting premature withdrawals.
2. Investors can opt for FDs through any public or private bank, excluding rural and cooperative banks, and even Post Office Time Deposits with a 5-year tenure qualify for tax deductions.
3. FDs can be held individually or jointly, with the tax benefit granted to the first holder in the case of joint FDs.
4. Furthermore, senior citizens are often offered higher interest rates on FDs, including tax-saving FDs.