Interest rate
Interest rate on fixed deposit also varies with the amount of deposit and tenure of FD booked. Interest rate also depends on the callable and non-callable type of deposit offered by the banks. Senior citizens are typically offered higher interest rates. To receive the interest payment, you can choose either cumulative option or non-cumulative option.
Banks offering best interest rate on 2 year fixed deposit
Bank Name | 2 Year | Qly Compound Return |
DCB Bank | 7.85 | 11682.18 |
IDFC First Bank | 7.5 | 11602.22 |
Indusind Bank | 7.5 | 11602.22 |
Axis Bank | 7.26 | 11547.66 |
Bandhan Bank | 7.25 | 11545.4 |
(Source: Compiled by ETIG; interest rates as on January 27, 2023)
DCB Bank offers an interest rate of 7.85%, which means that a Rs 10,000 investment will earn Rs 11682.18 in interest (quarterly compounded return).
IDFC First Bank and IndusInd Bank offer an interest rate of 7.50%, returns of RS 10,000 will earn an interest return of RS 11602.22 (quarterly compounded return).
If you invest in Axis Bank fixed deposit tenure of 2 years, the bank is offering an interest rate 7.26%, which will earn a return of Rs 11547.66 (quarterly compounded return).
Bandhan Bank and City Union Bank offer the interest rate of 7.25%, which means that a Rs 10,000 investment will earn Rs 11545.40 in interest (quarterly compounded return).Taxation on FD
The interest earned on an FD is completely taxable in the investor’s hands. It will be taxed at the rates that apply to your income tax brackets. According to current tax legislation, TDS would be deducted by the bank if the interest payment in a single fiscal year exceeds Rs 10,000. To avoid TDS, submit Form 15G or Form 15H (whichever is relevant) to the bank.