SBI vs HDFC bank FD Rates 2024: Know where regular and senior citizens will earn more on FD of Rs 10 lakh for 5 years in SBI and HDFC Bank.
SBI vs HDFC bank FD Rates 2024: Term deposits or fixed deposits (TDs/FDs) are a popular and traditional investment option in the country. Recently, some banks including SBI, HDFC have changed the interest rates on deposits with select maturities. For example, HDFC Bank has increased the interest rate by 20 basis points (0.20%) on FDs ranging from 3 years 1 day to 5 years. Similarly, SBI had increased the interest rates on deposits ranging from 46 days to 1 year. Let us know where regular and senior citizens will earn more on an FD of Rs 10 lakh for 5 years in SBI and HDFC Bank.
SBI FD rates 2024: How much will you earn on ₹10 lakh in 5 years
SBI is giving 6.5 percent annual interest to regular customers on 5-year FD. For senior citizens, these rates are 7.50 percent. The bank’s new interest rates are applicable on deposits of less than Rs 2 crore from May 15, 2023.
According to the SBI FD Calculator, a regular customer will get a total of Rs 13,80,419 on an FD of Rs 10 lakh in 5 years. In this, Rs 3,80,419 will be earned from interest.
On the other hand, a senior citizen will get a total of Rs 14,49,948 in 5 years on depositing Rs 10 lakh. Rs 4,49,948 will be earned from interest.
HDFC Bank FD rates 2024: How much will you earn in 5 years on ₹10 lakh
HDFC Bank is giving 7.20 percent annual interest on 5-year FD to regular customers. For senior citizens, this rate is 7.70 percent. These interest rates are applicable on deposits of less than Rs 2 crore from June 10, 2024.
According to HDFC FD Calculator, a regular customer will get a total of Rs 14,28,747 on an FD of Rs 10 lakh for 5 years. In this, Rs 4,28,747 will be earned from interest.
On the other hand, a senior citizen will get a total of Rs 14,64,247 in 5 years on depositing Rs 10 lakh. Rs 4,64,247 will be earned from interest.
Tax Benefits: Deduction up to ₹1.5 lakh under 80C
You can claim tax deduction of up to Rs 1.50 lakh in a financial year under section 80C on 5-year FDs in a bank. This claim can be made only in the old tax regime. 5-year FDs have a lock-in period of 5 years. This period can be extended up to 10 years.
According to the income tax rules, however, the interest earned from FD is taxable. If the interest earned on FD/TD in a financial year is more than Rs 40,000, then TDS (Tax Deduction at Source) is deducted. For senior citizens, this limit is Rs 50,000. If a person’s income is less than the taxable limit, then he has to fill Form 15G and 15H and request the bank not to deduct TDS on FD/TD.
