Meaning

A fixed deposit is a deposit made with a bank for a fixed period of time. The investor is usually not allowed to withdraw this money till the end of the period (known as term) without paying a penalty. The interest rate paid on the deposit is pre decided at the beginning of the period and an investor has the option to withdraw interest either at regular periods or take a lump sum at maturity.

Pros of Fixed Deposit

Safety

Regular Income
Saves tax (deductible under section 80-C)

Cons of Fixed Deposit

Lower rate of returns

Taxes
Rising inflation can wipe out the interest benefits

INSTITUTI ON
ING Vysya Bank

GROUP

INTEREST % p.a

PERIOD

INVESTME NT (Rs)

INVESTOR TYPE

TAX STATUS

Indian Private Sector Banks Indian Private Sector Banks

9.25

365 days

upto Rs. 1 cr

General

Taxable

Yes Bank

9.25

15 Months 15 days to 16 Months 390 days to less than 2 years 500 days

Less than Rs. 1cr

General

Taxable

ICICI Bank

Indian Private Sector Banks

9.00

Less than Rs. 15 lakh

General

Taxable

IDBI Bank

Public Sector / Nationalized Banks Public Sector / Nationalized Banks Public Sector / Nationalized Banks

9.00

less than Rs. 1cr

General

Taxable

Canara Bank

9.00

1 year and above to less than 2 years 1 year to less than 2 years

Less than Rs. 1cr

General

Taxable

State Bank of India (SBI)

8.75

less than Rs. 1 Cr

General

Taxable