Best bank account for higher interest rate

Best is to put in different banks to avoid tds being deducted.. Generally all banks gives around 5.5-6% on fd for more than 1 year

Bandhan bank gives 5% upto 10 Lakh on savings. 

Jana bank

The_Dark_Knight wrote:

Best is to put in different banks to avoid tds being deducted.. Generally all banks gives around 5.5-6% on fd for more than 1 year

But still if u combine all interest together, it will add upto more than 10k and TDS shud be paid right ?

alokatzenith wrote:

Bandhan bank gives 5% upto 10 Lakh on savings. 

Bandhan bank is doing most of things on paper they are still not modernise. If the branch isn’t near you then not recommended 

IDFC and IndusInd banks are giving more than 6% interest rate on FD's for more than a year.

SaveMoney69 wrote:
But still if u combine all interest together, it will add upto more than 10k and TDS shud be paid right ?

Tds deducted on more than 40000 interest on non senior fd.

Jana bank gives 7% on savings above 1L

SaveMoney69 wrote:
But still if u combine all interest together, it will add upto more than 10k and TDS shud be paid right ?

For fd it's 40k.. I guess it is deducted by bank so it will be deducted only if same bank has more than 40k..they shouldn't have idea on what other banks have 

AU Small Finacial Bank more then the IDFC and Indusd Bank, other don't know

SaveMoney69 wrote:
But still if u combine all interest together, it will add upto more than 10k and TDS shud be paid right ?

TDS threshold changed now it's 40K.

why you want to deposit such a huge amount for fd in first place?

Bajaj gives 7.5%

Various bank fd rates 

https://www.thehindubusinessline.com/money-and-...

chota_chattri wrote:

Bandhan bank is doing most of things on paper they are still not modernise. If the branch isn’t near you then not recommended 

Using it for more than 4 yrs. Never faced any problem. Everything is available online just like SBI/HDFC/ICICI. Using for emergency corpus. 

Ok so I have savings account balance across multiple banks as 3L and 7L. If I make an FD instead of keeping as savings account balance,I can increase TDS exempted interest from 10k to 40k ?

Equitas Small Finance bank gives 6% on savings balance above 1 lakh.

@K_G Instead of fd in one bank, you can go for T-Bill from RBI, safest and secure. Interest is still higher than any bank FD by at least 0.5-1% extra. No headache and no tension.

5 lac in equates and 5 lac in Yes bank

somu7668 wrote:

@K_G Instead of fd in one bank, you can go for T-Bill from RBI, safest and secure. Interest is still higher than any bank FD by at least 0.5-1% extra. No headache and no tension.

Where is this available? 

Check in Zerodha coin and rbi website.

More details: https://www.business-standard.com/article/finan...

LG50 wrote:

IDFC and IndusInd banks are giving more than 6% interest rate on FD's for more than a year.

Do we need to open savings bank account for both and which one is better?
Want to invest in FD around 1lakh.

SaveMoney69 wrote:
But still if u combine all interest together, it will add upto more than 10k and TDS shud be paid right ?

FD interest is 100% taxable, right from Re.1. Savings acct interest is tax free upto 10K. Bank is not required to do TDS on FD upto 40K but individual has to deposit tax and show in ITR

kartikxxx wrote:

why you want to deposit such a huge amount for fd in first place?

Bajaj gives 7.5%

U invested in bajaj fd?

sudbht wrote:
Do we need to open savings bank account for both and which one is better?
Want to invest in FD around 1lakh.

You need to open the bank account, IDFC bank is better in terms of services. DM me for referral.

SaveMoney69 wrote:
Ok so I have savings account balance across multiple banks as 3L and 7L. If I make an FD instead of keeping as savings account balance,I can increase TDS exempted interest from 10k to 40k ?

You are misunderstanding. You will have to pay tax on all the interest amount no matter fd or savings interest. Only difference is that if FD interest is more than 40k in a bank then bank deducts 10% as tds on that amt & submit it to income tax dept. Later when you file your itr then system calculates the tax on your interest income(from fd & savings interest) as per your tax slab & if it is more than your calculated tax then you will have to pay the difference but if it is less than tax calculated then you get the difference in amt as refund.

Suppose you open a fd of 10 lakh in idfc bank at 6% interest & keep 1 lakh in hdfc bank at 3% interest so your fd interest becomes 60k while savings acc interest becomes 3k. Now idfc will deduct tds at 10% or 6k & you will get 54k at the end of 1 year FD. Now you file itr in which it will be pre-filled that your interest income was 60+3=63k(all banks report it) under other sources of income as interest income. Now you show your salary income/other income as 2 lakh so your total income becomes 2.63 lakh. Now under 5 lakh total gross income means basically zero tax so after filing itr & after it gets processed you will get a refund of 6k.

If in above example you show your salary income as 4.5 lakh then your total income becomes 4.5+63k=5.13 lakh & you will have to pay tax of:

up to 2.5 lakh--0

2.5 lakh to 5 lakh portion of income--at the rate of 5%--12500

above 5 lakh portion of the income(till 10 lakh)--at 20% rate so 20% of 13k--2600

Total tax--0+12500+2600=15100 out of which 6k tds already paid so balance amt need to be paid will be 15100-6k=9100.

P.S. Non senior citizens get up to 10k deduction for savings acc interest income so in above example your total taxable income will be 5.10 lakh as 3k will be availed as deduction under this clause. I just didn't mention it for simplicity.

LG50 wrote:
You need to open the bank account, IDFC bank is better in terms of services. DM me for referral.

I already have idfc account. My friend needed it for FD. Any account opening offers on idfc? How is indusind bank in terms of service and charges.

guest_999 wrote:

You are misunderstanding. You will have to pay tax on all the interest amount no matter fd or savings interest. Only difference is that if FD interest is more than 40k in a bank then bank deducts 10% as tds on that amt & submit it to income tax dept. Later when you file your itr then system calculates the tax on your interest income(from fd & savings interest) as per your tax slab & if it is more than your calculated tax then you will have to pay the difference but if it is less than tax calculated then you get the difference in amt as refund.

Suppose you open a fd of 10 lakh in idfc bank at 6% interest & keep 1 lakh in hdfc bank at 3% interest so your fd interest becomes 60k while savings acc interest becomes 3k. Now idfc will deduct tds at 10% or 6k & you will get 54k at the end of 1 year FD. Now you file itr in which it will be pre-filled that your interest income was 60+3=63k(all banks report it) under other sources of income as interest income. Now you show your salary income/other income as 2 lakh so your total income becomes 2.63 lakh. Now under 5 lakh total gross income means basically zero tax so after filing itr & after it gets processed you will get a refund of 6k.

If in above example you show your salary income as 4.5 lakh then your total income becomes 4.5+63k=5.13 lakh & you will have to pay tax of:

up to 2.5 lakh--0

2.5 lakh to 5 lakh portion of income--at the rate of 5%--12500

above 5 lakh portion of the income(till 10 lakh)--at 20% rate so 20% of 13k--2600

Total tax--0+12500+2600=15100 out of which 6k tds already paid so balance amt need to be paid will be 15100-6k=9100.

P.S. Non senior citizens get up to 10k deduction for savings acc interest income so in above example your total taxable income will be 5.10 lakh as 3k will be availed as deduction under this clause. I just didn't mention it for simplicity.

Very well explained.
Thanx bro❤️

Bandhan bank vs RBL bank  ?

For Sc

IndusInd  7.5% for 1.5 years beating Scss