State Bank of India (SBI), the largest lender of the country, revised its fixed deposit (FD) interest rates with effect from today, the bank said on its website - sbi.co.in. A fixed deposit (FDs) is a secure financial instrument offered by banks, which fetch guaranteed returns. In a fixed deposit account, money can be invested for a higher rate of interest than savings accounts. One can deposit a lump sum of money in fixed deposits for a specific period, ranging from seven days to 10 years.
Private sector peers HDFC Bank and ICICI Bank last revised their FD interest rates on November 6 and November 15 respectively. SBI hiked its FD interest rates ahead of the Reserve Bank of India's bi-monthly monetary policy review outcome on December 5.
The fixed deposit accounts which have a lock-in period of five or 10 years also offer income tax benefit under Section 80C of the Income Tax Act.