According to reports from Bhawna Gupta, State Bank of India (SBI) is currently offering 6.30% interest rate on its 3-year FD scheme for general citizens, while ICICI Bank is providing 6.45% interest rate on the same tenure. SBI, being the country's largest public sector bank, and ICICI Bank, one of India's leading private lenders, offer different rates despite both being major banking institutions.
As reported by Bhawna Gupta, the maturity amounts for different investment amounts show that ICICI Bank provides better returns across all investment levels. For a ₹11 lakh investment, ICICI Bank offers ₹13,32,780 compared to SBI's ₹12,36,889. Similarly, on ₹21 lakh investment, ICICI Bank provides ₹25,44,397 versus SBI's ₹25,33,152. For the highest investment of ₹31 lakh, both banks offer identical maturity amounts of ₹37,39,415, as reported by Bhawna Gupta.
According to the report, FD investors have flexibility in investment tenure, with minimum investment period of 7 days and maximum tenure of 10 years. This flexibility allows investors to choose the optimal investment period based on their financial goals and risk appetite. The FD scheme provides guaranteed returns with capital safety, making it suitable for conservative investors seeking low-risk investment options.
As reported by Bhawna Gupta, FD interest is taxable as per the taxpayer's applicable income tax slab. This means the returns from both SBI and ICICI Bank FDs will be subject to income tax based on the investor's tax bracket. The tax treatment varies depending on the investor's overall income and tax slab allocation. Banks deduct TDS (Tax Deducted at Source) once interest income crosses prescribed thresholds, with higher thresholds for senior citizens. If total income is below taxable limits, investors can submit Form 15G/15H to avoid TDS deduction.
According to the report, fixed deposits are generally considered safe investment options due to their low-risk nature. They are a preferred choice for investors with zero risk appetite, offering guaranteed returns with capital safety. Most banks allow premature withdrawal with penalties, providing flexibility for investors needing early access to funds. Bank of Maharashtra offers additional features including overdraft facility against FDs (up to 90% of deposit value), digital FD booking through net banking, and ₹5 lakh DICGC insurance for deposits booked through partner platforms. The bank also provides accessibility to minors and various deposit categories with flexible eligibility criteria.
