Full list of banks offering the highest interest rate on one-year fixed deposits: FD rate of up to 8.25% 😊

Maximizing Your Fixed Deposit Gains 📈

If you’re considering ways to boost your income through fixed deposits, there are several options available to you. Fixed deposits allow you to invest a specific amount of money for a predetermined period of time, with varying durations and interest rates based on the tenure. Here’s a breakdown of the top banks offering competitive interest rates on one-year fixed deposits:

Top Banks Offering Competitive Rates

Small Finance Banks:
- AU Small Finance Bank: 7.25%
- Equitas Small Finance Bank: 8.2%
- ESAF Small Finance Bank: 6%
- Jana Small Finance: 8.25%
- NorthEast Small Finance Bank: 7%
- Suryoday Small Finance Bank: 6.85%
- Ujjivan Small Finance Bank: 8.25%
- Unity Small Finance Bank: 7.85%
- Utkarsh Small Finance Bank: 8%
Private Sector Banks:
- Axis Bank: 6.7%
- Bandhan Bank: 7.25%
- City Union Bank: 7%
- CSB Bank: 5%
- DBS Bank: 7%
- DCB Bank: 7.1%
- Federal Bank: 6.8%
- HDFC Bank: 6.6%
- ICICI Bank: 6.7%
- IDFC First Bank: 6.5%
Public Sector Banks:
- Bank of Baroda: 6.85%
- Bank of India: 6.8%
- Bank of Maharashtra: 6.75%
- Canara Bank: 6.85%
- Central Bank of India: 6.85%
- Indian Bank: 6.1%
- Indian Overseas Bank: 6.9%
- Punjab National Bank: 6.8%
- Punjab & Sind Bank: 6.3%
- State Bank of India: 6.8%
- Union Bank of India: 6.8%
Foreign Banks:
- Deutsche Bank: 7%
- HSBC Bank: 4%
- Standard Chartered Bank: 7.5%

Implications of Booking an FD Without PAN 💸

In the absence of a PAN card, booking a fixed deposit can have several implications for customers, including:

TDS will be recovered at 20% instead of 10%
No TDS credit from the Income Tax department
No TDS certificate will be issued
Form 15G/H and other exemption certificates will be invalid, leading to penal TDS

Understanding TDS Deductions 🧾

TDS is deducted by the bank every time interest is paid or reinvested during the financial year, as well as on interest accrued but not yet paid by the end of the financial year on 31st March.

Liability for TDS 💼

If the total interest you earn on all deposits under a single customer ID across branches exceeds Rs. 40,000 (Rs. 50,000 for senior citizens) in a financial year, you are liable for TDS. This liability is determined based on PAN numbers, not branch-wise.

Hot Take 🔥

Make informed decisions when investing in fixed deposits to maximize your earnings and understand the implications of not providing a PAN card for your FD bookings. Stay up to date on TDS deductions and ensure compliance with tax regulations to make the most of your investments.