Fixed deposit Interest rates 2022: Those who get FD often have the confusion that their money is tax free. It’s not like that. The interest earned is fully taxable.
Fixed deposit Interest rates 2022: When inflation increased, RBI started increasing the repo rate to control it. After this banks also increased the loan rates. Now it was the turn to get more interest on public’s savings. Banks started paying more interest on deposits. In the year 2020, at the time of Corona, the interest rates had come down to 3-4 or 5 percent. Now she is flying upwards again.
Means now once again more interest is being received on Fixed Deposit. From the country’s largest bank SBI to Axis Bank and ICICI HDFC have also started paying more interest to their customers. Post Office is also not behind in this matter. If you are also planning a fixed deposit in any bank or post office, then check the best rate. So that you can invest for more profit. Remember Fixed Deposit is a safe investment, it has a government guarantee.
Where and how much interest on FD of 2 years?
| SBI | ICICI | HDFC | pnb | Axis | post office |
| 6.25% | 6.40% | 6.50% | 6.25% | 6.50% | 5.70% |
Where and how much interest on FD of 3 years?
| SBI | ICICI | HDFC | pnb | Axis | post office |
| 6.10% | 6.50% | 6.50% | 6.10% | 6.50% | 5.80% |
Where and how much interest on 5 years FD?
| SBI | ICICI | HDFC | pnb | Axis | post office |
| 6.10% | 6.60% | 6.50% | 6.10% | 6.50% | 6.70% |
Tax is applicable on the income earned from the interest received on FD.
Those who get FD often have this confusion that their money is tax free. It’s not like that. The interest earned is fully taxable. Suppose you invest in FD for one year, then the interest earned during this period will be added to your annual income. Your tax slab will be decided on the basis of total income. The interest received from FD is counted in income from other sources. That’s why bank or post office will deduct TDS on this. TDS is deducted at the time of crediting the interest to your account.
If you want to save tax then definitely understand these nuances
Your income tax formula is also used on Fixed Deposit. Meaning if your annual income is up to Rs 2.5 lakh then TDS will not be deducted. But, for this Form 15G or 15H has to be submitted. TDS will not be deducted even if the annual interest received on FD is less than Rs 40,000. 10% TDS is deducted on interest above Rs 40,000. Bank can deduct 20% TDS for not submitting PAN card as KYC. However, for senior citizens, the limit of earning from FD is 50 thousand rupees. There is no tax on such earnings. If it is more than this, 10% TDS is deducted.
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