SBI VS HDFC Bank Term Deposit Scheme: Interest rates on deposits from banks are now being increased. Bank Fixed Deposit or Term Deposit is a traditional investment option.
SBI VS HDFC Bank Term Deposit Scheme: Interest rates on deposits from banks are now being increased. Bank Fixed Deposit or Term Deposit is a traditional investment option. Bank FDs are a better way to give a safe and fixed income. The country’s largest bank SBI recently increased the interest rates of its term deposits. After this HDFC Bank has also decided to increase the interest on FD. The specialty of bank FDs is that you can make a fixed income by making a lump sum deposit. In this, a fixed interest is available on the principal amount i.e. the deposit. Now if you have, in addition to this, if you have made an FD for 5 years, then you can also take advantage of tax deduction.
SBI VS HDFC Bank: Interest Rates on 2 Year FD
According to the information available on SBI’s website, the bank is offering 5.20 percent annual interest to regular customers and 5.70 percent to senior citizens on 2-year FDs. On the other hand, if we talk about HDFC Bank, then on 2-year FD, it is giving 5% annual interest to regular customers and 5.50 percent to senior citizens. These interest rates are applicable on deposits of less than Rs 2 crore.
SBI: How much profit on 5 lakh deposit
According to the FD calculator, if you deposit a lump sum deposit of Rs 5 lakh in SBI for 2 years, then you will get Rs 5,54,429 on maturity. In this, interest of Rs 54,429 lakh will be earned. On the other hand, if you are a senior citizen, then after 2 years on an FD of Rs 5 lakh, you will get Rs 5,59,925. In this, there will be an income of Rs 59,925 from interest.
HDFC Bank: How much profit on 5 lakh deposit
According to the FD calculator, if you deposit a lump sum deposit of Rs 5 lakh in HDFC Bank for 2 years, then you will get Rs 5,52,243 on maturity. In this, interest of Rs 52,243 lakh will be earned. On the other hand, if you are a senior citizen, then on FD of Rs 5 lakh, you will get Rs 5,57,721 after 2 years. In this, there will be an income of Rs 57,721 from interest.
Benefits of Bank FD
Fixed deposits / term deposits of banks are considered safe. This is a good option for risk-averse investors. Tax exemption is available in section 80C on tax saving FDs of 5 years. However, the interest earned from FD is taxable.
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