If you want to earn extra income by investing in fixed-term deposits, you have numerous options. The period for which you can deposit money varies from seven days to ten years, and the interest rate also varies depending on the term.
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Here are the top banks offering the best interest rates on one-year fixed deposits.
Bank Fixed Deposit Rates | |
Name of the bank | |
1 year stay (%) | |
SSHOPPING CENTER FINANCING BANKS | |
Small Finance Bank of Australia | 7.25 |
Equitas Small Finance Bank | 8.2 |
ESAF Small Finance Bank | 6 |
Jana Small Finances | 8.25 |
Northeast Small Finance Bank | 7 |
Suryoday Small Finance Bank | 6.85 |
Ujjivan Small Finance Bank | 8.25 |
Unity Small Finance Bank | 7.85 |
Utkarsh Small Finance Bank | 8 |
PRIVATE SECTOR BANKS | |
Axis Bank | 6.7 |
Bandhan Bank | 7.25 |
Union City Bank | 7 |
CSB Bank | 5 |
DBS Bank | 7 |
DCB Bank | 7.1 |
Federal Bank | 6.8 |
HDFC Bank | 6.6 |
ICICI Bank | 6.7 |
First IDFC Bank | 6.5 |
Industrial Bank | 7.75 |
Bank of Jammu and Kashmir | 7 |
Karur Vysya Bank | 7 |
Bank of Karnataka | 7.1 |
Kotak Mahindra Bank | 7.1 |
RBL Bank | 7.5 |
SBM Bank India | 7.05 |
Bank of South India | 6.7 |
Merchants Bank of Tamilnad | 7 |
SI Bank | 7.25 |
PUBLIC SECTOR BANKS | |
Bank of Baroda | 6.85 |
Bank of India | 6.8 |
Bank of Maharashtra | 6.75 |
Canara Bank | 6.85 |
Central Bank of India | 6.85 |
Bank of India | 6.1 |
Indian Overseas Bank | 6.9 |
National Bank of Punjab | 6.8 |
Punjab and Sind Bank | 6.3 |
State Bank of India | 6.8 |
Union Bank of India | 6.8 |
FOREIGN BANKS | |
German Bank | 7 |
HSBC Bank | 4 |
Standard Chartered Bank | 7.5 |
SSource: Money Bazaar | |
Interest rates as of August 27, 2024 |
What are the implications of booking an FD without PAN?
In the absence of the PAN, the implications for clients are as follows:
- TDS will be recovered to 20% (instead of 10%)
- NO TDS credit from Income Tax department
- NO TDS certificate will be issued (as per CBDT circular no: 03/11)
- Form 15G/H and other exemption certificates will not be valid and a penal TDS will apply.
When is TDS deducted?
TDS is deducted whenever the Bank pays/reinvests interest during the financial year. In addition, TDS is also deducted on interest accrued (but not yet paid) at the end of the financial year i.e. 31st March.
Responsibility for TDS
If the aggregate interest that you are likely to earn on all your deposits held at branches in one customer ID is more than Rs.40,000/- (Rs.50,000/- for senior citizens) in a financial year, you become liable for TDS.
Note: Tax liability for TDS purposes is determined by account number and not by branch by account number. Deposits held by minors are also subject to TDS. Credit for TDS can be claimed by the person in whose possession the income of the minor is included.
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