Special FD rates: These banks offer up to 8.10% interest till Dec 31

If you’re looking for fixed deposits with attractive interest rates, Punjab & Sind Bank and IDBI Bank are offering special schemes that run until December 31, 2024. These schemes come with competitive rates for various tenures, for both general customers and senior citizens.

 

IDBI Bank special FD details  

IDBI Bank’s Utsav Fixed Deposits are available for tenures of 300 days, 375 days, 444 days, and 700 days. The deadline for investing is December 31, 2024.  

 

For general customers, interest rates are:

300 days: 7.05%

375 days: 7.25%

444 days: 7.35%

700 days: 7.20%

 

Senior citizens enjoy slightly higher rates:

300 days: 7.55%

375 days: 7.75%

444 days: 7.85%

700 days: 7.70%

 

Special conditions for IDBI Bank’s Utsav FDs include:  

—  The 300-day tenure is not available for NRE deposits.  

—  Premature withdrawal or closure is permitted.  

—  Staff and senior citizen rates do not apply to NRO and NRE term deposits.  

 

All other standard features and terms remain unchanged for this scheme.

 

Punjab & Sind Bank special FD details  

Punjab & Sind Bank also has special fixed deposit schemes with varying tenures. These offers are valid until December 31, 2024, according to the bank’s website.  

 

For general customers, the interest rates are:  

222 days: 6.30%  

333 days: 7.20%  

444 days: 7.30%  

555 days (callable): 7.45%  

777 days: 7.25%  

999 days (callable): 6.65%

 

Higher rates for senior citizens  

Senior citizens get an additional 0.50% interest on deposits below Rs 3 crore for maturities of 180 days or more. The rates range between 4% and 7.95%, with the highest rate offered on the 555-day callable deposit.  

 

Special benefits for super senior citizens  

Super senior citizens (80 years and above) receive an extra 0.15% interest on select tenures, including 222, 333, 444, 555, 777, and 999 days. The highest rate for super senior citizens is 8.10%, available on the 555-day tenure.

 

For both banks, these special schemes provide a chance to maximise returns, but investors should check the full terms and conditions before making decisions.

 

How FDs are taxed in India

 

Interest earned on fixed deposits is taxable based on an individual’s income tax slab.

 

“The interest is added to your total income and taxed according to your income tax slab,” said Adhil Shetty, CEO of Bankbazaar. Banks deduct 10% TDS if the interest exceeds Rs 50,000 for senior citizens (Rs 40,000 for others). This rate rises to 20% if the PAN is not provided.

 

Let’s take Mr Mann, a 50-year-old resident of Chandigarh, as an example:

 

Total interest earned: Rs 75,000 annually

TDS threshold: Rs 40,000 for general citizens

TDS deducted: 10% of Rs 75,000 = Rs 7,500

 

The Rs 75,000 interest will be added to Mr Mann's taxable income. If his total income is below Rs 2.5 lakh, no additional tax will be payable.

 

To avoid TDS deductions, Mr Mann can submit Form 15G at the beginning of the financial year. This declaration confirms his income is below the taxable limit, ensuring no upfront TDS is deducted.