Fixed deposit accounts with a lock-in period of five or 10 years are eligible for deduction in income tax under Section 80C of the Income Tax Act.
Fixed deposit interest rates are subject to change from time to time.
Punjab National Bank (PNB) has revised its fixed deposit (FD) interest rates. With effect from February 1, 2019, PNB has added three new maturity periods – 111 days, 222 days and 333 days, according to the public sector lender’s website, pnbindia.in.
For 111 days, the bank is offering an interest rate of 6.50 per cent to general public and 7 per cent to the senior citizens, according to the PNB website. Fixed deposit accounts with a lock-in period of five or 10 years are eligible for deduction in income tax under Section 80C of the Income Tax Act.
Here’s is the new interest rates offered by PNB to its customers on domestic and NRO (non-resident ordinary) term deposits (fixed deposits) up to Rs. 1 crore:
Interest rate applicable to domestic/NRO fixed deposits up to Rs. 1 crore (with effect from 01.02.2019)
Maturity period (term) For general public For senior citizens
7 to 14 days 5.75% 6.25%
15 to 29 days 5.75% 6.25%
30 to 45 days 5.75% 6.25%
46 to 90 days 6.35% 6.85%
91 to 179 days 6.35% 6.85%
111 days 6.5% 7%
180 days to 270 Days 6.35% 6.85%
222 days 6.6% 7.1%
271 days to less than 1 year 6.35% 6.85%
333 days 7.1% 7.6%
1 year 6.75% 7.25%
555 days (effective for a period of 01.11.2018 to 31.03.2019) 6.85% 7.35%
above 1 year & up to 3 years 6.75% 7.25%
above 3 year & up to 5 years 6.25% 6.75%
above 5 years & up to 10 years 6.25% 6.75%
(Source: pnbindia.in)
Fixed deposit interest rates are subject to change from time to time. Last week, private sector lender Axis Bank also revised its fixed deposit interest rates.
Meanwhile, Union Minister Piyush Goyal, in his Budget speech, proposed to increase the limit for tax deduction at source (TDS) on interest income from Rs. 10,000 to Rs. 40,000 per annum. (Here’s how it impacts you)
