Get 8.05% interest on FDs maturing in a year; check full list of banks

Top 1-year FD rates: Get 8.05% interest on FDs maturing in a year; check full list of banks

There are still some private sector banks left which continue to offer high interest rates on fixed deposits for retail depositors investing below Rs 3 crore. Given below is a list of banks which are offering up to 8.05% interest on FDs maturing in one year. This interest rate is for general citizens.

Here's the full list of banks offering up to 8.05% interest on FDs for one-year tenure for individuals less than 60 years of age and for fixed deposits less than Rs 3 crore.

Bandhan Bank FD rate

Bandhan Bank is offering a 8.05% interest rate to general citizens on its FDs maturing in one year.

IndusInd Bank FD rate

IndusInd Bank is offering a 7.75% interest rate to general citizens on its FDs maturing in one year.

RBL Bank FD rate

RBL Bank is offering a 7.5% interest rate to general citizens on its FDs maturing in one year.

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Karnataka Bank FD rate

Karnataka Bank is offering a 7.25% interest rate to general citizens on its FDs maturing in one year.

Similarly YES Bank is also offering an interest rate of 7.25% on its FD maturing in one year.

DCB Bank FD rate

DCB Bank is offering a 7.1% interest rate to general citizens on its FDs maturing in one year.

Kotak Mahindra Bank is also offering a 7.1% interest rate to general citizens on its FDs maturing in one year.

Bank name	Interest rate
Bandhan Bank	8.05%
IndusInd Bank	7.75%
RBL Bank	7.50%
Karnataka Bank	7.25%
YES Bank	7.25%
DCB Bank	7.10%
Kotak Mahindra Bank	7.10%

Source: paisabazaar.com as of December 4, 2024

How is FD interest taxed

According to the Ujjivan Small Finance Bank website as of December 5, 2024, "Interest income from fixed deposits is fully taxable and should be reported under the head 'Income from Other Sources' in your Income Tax Return. Regarding the taxation on fixed deposit interest, banks deduct tax at source (TDS) at the time of crediting interest to your account if the amount of interest exceeds Rs 40,000 for regular depositors and Rs 50,000 for senior citizens. The minimum TDS applicable on FD interest is 10%. It is important to note that the FD interest tax is deducted at the time of credit and not when the FD matures."

When is TDS deducted from bank FDs

According to the Ujjivan Small Finance Bank website, "TDS (Tax Deducted at Source) is a taxation mechanism through which tax is deducted from certain payments made to individuals. In the case of fixed deposits, the taxation on fixed deposit interest involves banks deducting TDS at a rate of 10% if the interest income exceeds Rs 40,000 (Rs 50,000 for senior citizens). For example, if you earn an FD interest of Rs 50,000, the bank would deduct an FD interest tax of Rs 5,000 and deposit it to the government. When filing your Income Tax Return, it is necessary to report the entire interest earned and claim the TDS deducted as a refund. It is important to note that if your total income is less than Rs 2.5 lakh, no TDS will be deducted. To avoid TDS on your FD interest in case you don't fall under the minimum tax bracket, you can submit Form 15G or 15H to the bank to claim interest income without TDS."

This story originally appeared on: India Times - Author:Faqs of Insurances