Current FD Rates (Major Banks)
| Bank | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
| SBI | 6.80% | 7.00% | 6.50% |
| HDFC | 6.80% | 7.10% | 7.00% |
| ICICI | 6.90% | 7.00% | 7.00% |
| Axis | 6.85% | 7.05% | 7.00% |
| Small Finance Banks | 7.5-8.5% | 8-9% | 8-8.5% |
FD Interest Calculation Formula
A = P × (1 + r/n)^(n×t)
Where: A = Maturity Amount, P = Principal, r = Rate (decimal), n = Compounding frequency, t = Time in years
Where: A = Maturity Amount, P = Principal, r = Rate (decimal), n = Compounding frequency, t = Time in years
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Senior Citizen Benefit
Senior citizens (60+) get 0.25-0.75% higher FD rates at most banks. Super senior citizens (80+) may get additional benefits.
FD vs Other Investments
- FD: Guaranteed returns, fully taxable, no market risk
- PPF: 7.1% tax-free, 15-year lock-in, 80C benefit
- Debt Funds: Market-linked, indexation benefit for 3+ years