The State Bank of India (SBI), the country’s largest public sector bank, has increased the interest rates on fixed deposits (FDs).Details Inside
SBI Interest Rates On Fixed Deposits: The State Bank of India (SBI), the country’s largest public sector bank, has increased the interest rates on fixed deposits (FDs). The SBI has increased the interest rate on FD from 46 days to 179 days from 4.75% to 5.50%, on FD from 180 days to 210 days, the interest rate will now be 6.00% instead of 5.75%.
Similarly, on FDs of 211 days to less than 1 year, the interest rate will now be 6.25% instead of 6.00%.
There has been no change in the interest rates for the remaining period. These interest rates have come into effect from Wednesday, May 15. These interest rates apply to Fixed Deposits of less than Rs 2 crore.
Duration Wise Interest Rates
- For short-term deposits ranging from 7 days to 45 days, the interest rate is 3.50%.
- For deposits between 46 days and 179 days, the rate increases to 5.50%.
- For 180 days to 210 days, the interest rate is 6.00%.
- Deposits held for 211 days to less than one year earn an interest rate of 6.25%.
- For a tenure of 1 year to less than two years, the interest rate is higher at 6.80%.
- The rate reaches its peak for deposits of 2 years to less than three years, standing at 7.00%.
- For durations of 3 years to less than five years, the interest rate slightly decreases to 6.75%.
- For long-term deposits spanning five years up to 10 years, the interest rate is 6.50%.
Interest Received On Fixed Deposit Is Taxable
The interest received on FDs is fully taxable. Whatever interest you earn on FDs in a year is added to your annual income. Based on the total income, your tax slab is determined. Since interest income earned on FD is considered “Income from Other Sources”, it is charged under Tax Deducted at Source or TDS. When your bank deposits your interest income into your account, TDS is deducted at the same time.