PSU Banks Fixed Deposits News: Interest Rates, Exemptions, and More!

In a fixed deposit, the amount you invest is compounded with interest over a predetermined period of time. The bank pays interest on the fixed deposit at a fixed rate known as the fixed deposit interest rate. Different banks offer different interest rates which can also vary based on the deposit amount and tenure. Therefore it is important to compare the list of bank FD interest rates before making an investment. The following is a compilation of the top PSU bank FD interest rates as of June 7th 2023.

PSU Banks Fixed Deposits News: Interest Rates, Exemptions, and More

It’s worth noting that the above interest rates include special deposits and the tenure may vary from bank to bank. However, the list does not include the FD rates for super senior citizens. Senior citizens have the advantage of earning a higher interest rate compared to regular citizens. The additional interest rate offered on their fixed deposits can range from 0.25 percent to 1 percent. The tenure of the FD is one of the key factors that determine the interest rate, among other criteria.

As per the Bank of Baroda website, the exemption limit for TDS deduction on FDs is determined based on the income tax guidelines. Currently, for individuals who are not senior citizens, the exemption limit for TDS deduction on FDs is Rs. 40,000. For senior citizens, the exemption limit is Rs. 50,000. It is important to mention that individuals with a total taxable income are eligible for exemption from TDS payment on their FDs. These details are based on the guidelines provided by the Bank of Baroda website.