What is the current FD interest rate in India 2026?+
FD rates in India 2026 (for general public): SBI 3.50–7.00%, HDFC Bank 3.00–7.40%, ICICI Bank 3.00–7.25%, Post Office 6.90–7.50%. Senior citizens get an additional 0.25–0.50% over regular rates. Small finance banks like Unity SFB and Utkarsh SFB offer up to 9%.
Is FD interest taxable?+
Yes, FD interest is fully taxable as 'Income from Other Sources' at your income tax slab rate. TDS of 10% is deducted at source if FD interest exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G (below 60 years) or Form 15H (60+ years) to avoid TDS if your total income is below the taxable limit.
What is the FD interest rate for senior citizens?+
Senior citizens (60+ years) receive 0.25–0.50% extra over regular FD rates. Example: SBI gives 7.50% to seniors for certain tenures, vs 7.00% for regular customers. Some banks like HDFC Bank give 0.50% extra for 5-year FDs. Senior citizens' threshold for TDS is also higher at ₹50,000/year.
What is the maximum FD amount insured by DICGC?+
The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures bank deposits up to ₹5 lakh per depositor per bank (covering both principal and interest). This applies to all types of deposits — savings, FD, RD, current accounts. To safeguard more money, spread deposits across different banks.
Can I break a fixed deposit before maturity?+
Yes, FDs can be broken (pre-closed) before maturity, but with a penalty. Banks typically charge 0.5–1% lower interest rate than the contracted rate on premature closure. Some banks like SBI don't charge premature withdrawal penalty on deposits below ₹5 lakh. Tax-saver FDs (80C) have a mandatory 5-year lock-in and cannot be broken early.
What is a tax-saver FD?+
Tax-saver FDs (5-year FDs under Section 80C) let you invest up to ₹1.5 lakh per year and claim tax deduction under Section 80C. Minimum lock-in: 5 years (cannot be broken early or pledged as collateral). Current rates: SBI 6.50%, HDFC 7.00%. Note: Interest earned is still fully taxable even though principal is eligible for 80C.