Bank FD Interest Rates 2022 PDF

Bank FD Interest Rates 2022 PDF Summary

Dear friends, here we are going to present Bank FD Interest Rates PDF for all of you. The State Bank of India (SBI) has increased fixed deposit (FD) interest rates on certain tenors by up to 20 basis points effective from June 14, 2022, for deposits below Rs 2 crore. The bank has raised the interest rate on FDs with terms ranging from 211 days to less than a year by 20 basis points to 4.60 percent.

The interest rate offered has been hiked to 5.30 percent from 5.10 percent for 1 year to less than 2 years and the interest rate has been raised by 15 basis points in 2 years to less than 3 years tenor FDs to 5.35 percent from 5.20 percent. Punjab National Bank (PNB), the country’s second-largest public-sector lender, has raised interest rates on fixed deposits of less than ₹2 crores.

The bank issued this announcement on June 14, 2022, and as a result of the modification, the bank has raised interest rates on deposits maturing in one year to ten years. The bank will continue to offer a 3 per cent interest rate on fixed deposits maturing in 7 to 45 days and a 3.25 per cent interest rate on fixed deposits maturing in 46 to 90 days.

Bank FD Interest Rates PDF 2022 in India

PNB FD Interest Rates 2022

• The bank will now provide an interest rate of 5.30 per cent on deposits maturing in more than two years and up to three years, up from 5.10 per cent previously, a 20 basis point increase.
• PNB will now provide an interest rate of 5.50 per cent on deposits of more than three years and up to five years, up from 5.25 per cent previously, a 25 basis point increase. PNB will now give an interest rate of 5.60 per cent, up from 5.25 per cent before, a hike of 35 bps on deposits of 5 years or more and up to 10 years.
• The bank has implemented a new tenure of 1111 days with an interest rate of 5.50 per cent for regular customers and a rate of 6 per cent for senior citizens. For the additional interest rate benefit of senior citizens, PNB has mentioned on its website that “The Senior citizens shall get an additional rate of interest of 50 bps over applicable card rates for all maturities on domestic deposits of less than Rs. 2 Crore.
• In the case of staff members as well as retired staff members who are also Senior Citizens, the maximum rate of interest to be allowed over the applicable card rate shall be 150 bps except in the case of the PNB Tax Saver Fixed deposit scheme, where the maximum rate of interest to be allowed over applicable card rate is 100 bps.”
• “The revised interest rates will be applicable to fresh deposits and renewal of existing deposits with effect from 14.06.2022,” the bank has mentioned on its website.

SBI FD Interest Rates 2022

• Meanwhile, the country’s largest lender, State Bank of India (SBI) has also hiked interest rates on fixed deposits of less than ₹2 Cr. The bank has hiked interest rates by 15 to 20 bps on deposits of 211 days to less than 3 years.
• The new interest rates of SBI fixed deposits are in force from today, 14th June 2022. The interest rate payable to SBI Staff and SBI pensioners will be 1.00% above the applicable rate.
• The rate applicable to all Senior Citizens and SBI Pensioners of age 60 years and above will be 0.50% above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident Indian Senior Citizen Pensioners will get both the benefits of Staff (1%) and resident Indian Senior Citizens (0.50%).
• The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits.
• The interest rates on the “SBI Tax Savings Scheme 2006(SBITSS)” Retail Deposits and NRO deposits shall be aligned as per the proposed rates for domestic retail term deposits.
• However, NRO deposits of Staff are not eligible for an additional 1% interest otherwise applicable to staff domestic retail deposits, these rates of interest shall also be made applicable to domestic term deposits from Cooperative Banks.

Bank FD Interest Rates 2022

The suggested interest rates will apply to new deposits as well as renewals of maturing deposits. The interest rates on retail deposits and NRO deposits under the “SBI Tax Savings Scheme 2006(SBITSS)” would be linked with the projected rates for domestic retail term deposits.

SBI last increased FD interest rates in February 2022. With effect from February 15, 2022, SBI had hiked interest rates for FD terms longer than two years by 10-15 basis points.

How to tweak your FD ladder in the current situation

• Making an FD ladder is an option as it helps you to break a big deposit into many parts and book each part after a time gap so that you get the average return and periodic liquidity when there is volatility in the interest rate.
• However, choosing the right tenure and frequency of deposit is important. In a rising rate scenario keeping the tenure and gap between deposits low is the key so that the deposit gets the benefit of growing rates quickly at the time of maturity.
• These can be gradually increased to complete a stable ladder. For instance, if you have Rs 10 lakh you can make the first FD of Rs 2.5 lakh for six months, then a second FD of Rs 2.5 lakh for 9 months and so on.
• Once your first FD matures you can increase the tenure to 2 years and after that, once the second FD matures you can keep the tenure for 2 years 3 months and so on. Once these FDs start maturing you increase the tenure to 3 years and increase the gap between the two FDs to 9 months.

• The Reserve Bank of India (RBI) hiked the repo rates by 50 basis points in its monetary policy meeting on June 8, 2022. That brings the total rate hike by the central bank to 90 bps in a little more than a month.
• More banks are expected to hike FD rates in the coming months, which is good news for FD investors.

What are the Types of FD?

Normal Fixed Deposit:

• These are the traditional fixed deposits that are offered by public/ private banks and NBFCs. The interest rate is pre-determined and the lock-in period varies from 7 days to 10 years.
• The interest rate ranges from 4% to 7.50% and is usually higher than the savings bank account interest rate. You don’t need a bank account to open an FD with a specific bank.

Tax-Saving Fixed Deposit:

As the name suggests a tax-saving FD provides a tax benefit of up to Rs 1.5 lakhs under section 80C of the Income Tax Act, 1961. However, you cannot withdraw before the lock-in period of 5 years.

You must account for your emergency requirements before investing in a tax-saving FD for 5 years.

Cumulative Fixed Deposit:

• A cumulative fixed deposit is just like a regular or traditional FD but with a difference in interest payout. In the case of a cumulative FD, the interest earned on the FD during the tenure is credited to the FD account at the end of each compounding period.
• However, this credited interest is not available for withdrawal and will be credited at maturity along with the principal amount. It is a better option for investors who are well aware of their near-future requirements of funds and do not need a regular payout of interest.

Non-Cumulative Fixed Deposit:

• Non-cumulative fixed deposit unlike cumulative FD allows a regular payout on interest. Here, the interest is paid to the investor at the chosen frequency of the interest payout.
• You need to choose the frequency at the time of application of the FD. The frequency can be monthly, quarterly, half-yearly, or annually. Since you withdraw the interest amount the maturity amount will decrease even more if the FD involves a higher payout frequency.

Company or Corporate Fixed Deposit:

• Non-Banking Financial Institutions (NBFC) offer Corporate Fixed Deposits or Company Fixed Deposits. It acts as a savings product for investors.
• The company or corporate FD provides an interest rate that is usually higher than the regular fixed deposits. However, you must always check the creditworthiness of the NBFC offering the FD before investing.

NRO Fixed Deposit:

• Similar to an NRE FD account, the NRO FD account also requires an investor to hold an NRO account to open an FD. You can invest in FD by logging into your NRO account and providing the documents.
• The interest earned is taxable in India and the tax can be reduced considering the applicability of the Double Taxation Avoidance Agreement (DTAA). The interest of FD is completely repatriated.

What are the benefits of Investing in a Fixed Deposit?

Assured Rate of Interest:

• One of the major advantages of investing in a fixed deposit is the assured rate of interest. Once you invest in an FD you will surely earn the rate of interest agreed upon between you and your bank.
• Moreover, the banks and NBFCs provide the interest rate on FDs on their official website. You can easily know the interest rate and accordingly invest with the bank/ NBFC providing the higher rate of interest.

Liquidity:

No doubt the fixed deposit comes with a lock-in period but you can withdraw anytime and anywhere. Premature withdrawal is very easy and simple. You just need to log in to your bank account through internet banking or mobile banking and request a withdrawal.

Loan against a Fixed Deposit:

• You can avail of a loan against your fixed deposit in case of a financial need for funds. Since a loan against an FD is a secured loan with the FD being collateral the interest rate will be lower than an unsecured loan.
• The process is very simple and seamless. You can avail of a loan for an amount ranging from 90% to 95% of the fixed deposit amount.

The flexibility of Tenure:

• You can invest in a fixed deposit for a tenure that suits your financial needs or purpose. You can invest for a tenure ranging from 7 days to 10 years in days, months, and years.
• For example, if you have a lumpsum amount and you want to invest in FD for a foreign trip you are willing to take in say another 4 months. You can invest for just 4 months and then liquidate your fixed deposit.

What is a Fixed Deposit?

A fixed deposit or FD is an investment product offered by banks and Non-Banking Finance Companies (NBFCs). In FDs, you invest for a set amount of time and get a fixed interest rate.

You know at the time of investing what interest rate you will get and how much money you will receive at the time of maturity. You also get the option of selecting a regular payout of interest.

You can download Bank FD Interest Rates PDF by going through the following download button.