After State Bank of India (SBI), now Canara Bank has also cut the interest rates of fixed deposits i.e. FD. According to the new interest rates, now general citizens will get interest at the rate of 6.85% on FD for 1 year. At the same time, 6.90% annual interest will be given on 2-year FD, 7.00% on 3-year FD and 6.70% on 5-year FD. At the same time, the bank is offering 7.00% interest on FD of 444 days. At the same time, the bank is giving interest up to 7.50% to senior citizens. 6.50% interest on 1 year FD in SBI
Earlier this month, SBI had cut the interest rates of FD by 0.20%. Now 6.50% interest is being given on 1-year FD in SBI. The new interest rates have come into effect from 16 May 2025. The bank had also cut interest rates on April 15 last month. Keep these 3 things in mind while making FD 1. Choosing the right tenure is important
Before investing in FD, it is important to think about its tenure. This is because if investors withdraw before maturity, they will have to pay a penalty. Breaking the FD before it matures will attract a penalty of up to 1%. This can reduce the total interest earned on the deposit. 2. Do not invest all the money in a single FD
If you are planning to invest Rs 10 lakh in FD in a single bank, then instead invest in 8 FDs of Rs 1 lakh and 4 FDs of Rs 50 thousand in more than one bank. This way, if you need money in between, you can arrange money by breaking the FD in between as per your need. Your remaining FDs will remain safe. 3. Tax exemption is available on 5 year FD
5 year FD is called tax savings FD. By investing in it, you can claim a deduction of Rs 1.5 lakh from your total income under section 80C of the Income Tax Act. In simple language, understand it like this, you can reduce up to 1.5 lakhs from your total taxable income through section 80C.
