Calculate your Loan EMI & Total Interest Due
Monthly amount paid to your Loan provider
Your debt repayment schedule in regular instalments over a period of time.
|Year||Principal Paid(A)||Interest Paid(B)||Total Payment (A+B)||Outstanding Loan Balance||Pre-payment|
Let us assume that these are the details of your personal loan:
|Loan amount||Loan tenure||Interest rate||Processing fee||Loan EMI|
|Rs.7 lakh||5 years||10.99%||2%||Rs.15,216|
Total amount payable
|Total interest due||Rs.2,12,972|
|Total amount to be paid||Rs.9,26,972|
EMI breakup for a personal loan of Rs.7 lakh
|Year||Principal (in Rs.)||Interest (in Rs.)||Total of Principal and Interest (in Rs.)||Outstanding Loan Balance (in Rs.)|
We have assumed here that you will not be making any pre-payment. Click here to fully understand how a personal loan EMI calculator works.
Let us assume that these are the details of your home loan:
|Loan amount||Loan tenure||Interest rate||Processing fee||Loan EMI|
|Rs.30 lakh||10 years||9.75%||0.5%||Rs.39,231|
Total amount payable
|Total interest due||Rs.17,07,729|
|Total amount to be paid||Rs.47,22,729|
EMI breakup for a home loan of Rs.30 lakh
|Year||Principal (in Rs.)||Interest (in Rs.)||Total of Principal and Interest (in Rs.)||Outstanding Loan Balance (in Rs.)|
Here, we have assumed that you will not be making any pre-payment. Click here to fully understand how a home loan EMI calculator works.
Let us assume that these are the details of your car loan:
|Loan amount||Loan tenure||Interest rate||Processing fee||Loan EMI|
|Rs.18 lakh||7 years||9.12%||2.5%||Rs.29,070|
Total amount payable
|Total interest due||Rs.6,41,887|
|Total amount to be paid||Rs.24,86,887|
EMI breakup for a car loan of Rs.8 lakh
|Year||Principal||Interest||Total of Principal and Interest||Outstanding Loan Balance|
We have assumed here that you will not be making any pre-payment. Click here to fully understand how a car loan EMI calculator works.
To put it quite simply, an EMI calculator is a tool that will require you to enter the amount you want to borrow, the duration of the loan, the interest rates and the processing fee and it will do the rest. The basic formula that works behind an EMI calculator is:
E = P x r x (1+r)^n/((1+r)^n – 1)
This is the most basic formula that will be used by the calculator but there are some that may even include things like the processing fee for the loan, into the calculation of the monthly instalment. The processing fee will generally be a certain percentage of the amount being borrowed and can range from 1% to 3% but since it is decided by the bank it can be different for each bank.
Whether you obtain a secured loan (home loan or car loan) or an unsecured loan (personal loan), you have to repay the loan through Equated Monthly Installments (EMIs) over a specified period of time called the loan tenure. The cost of your loan is calculated in terms of monthly payments. Loan EMI calculation can help you find out the monthly cost of your loan. Accordingly, you can create a monthly budget to create a balance between your income and expense.
Here are some important reasons why it is advisable to calculate your loan EMI beforehand:
Manual loan EMI calculation can be cumbersome and prone to human error. With the advent of technology, it has become easier to calculate loan EMI online with just a few clicks of your mouse. Use the free online EMI calculator available on a reliable third-party website or a bank website to get instant and accurate results. Online EMI calculators can be used to calculate the cost of any type of loan scheme that you choose.
To ensure your loan EMI payments are within your repayment capacity, you can either adjust the loan tenure or the loan amount, or both. You can’t adjust the loan interest rate and processing fee levied by a bank. However, you can compare various loan offers and choose one with a low interest rate and zero processing fee to lower the cost of your loan.
There are three parts to the information that an EMI calculator provides. The first is the EMI itself, the second a breakup of the payments due and the third the amortisation table.
The EMI or the Equated Monthly Instalments are the amount that you can expect to pay if you go in for a loan. It includes payments of the principal and the interest that are applicable on the loan. It is the most important information that the calculator provides since the EMI is at the basis of the decision about the affordability of the loan.
The breakup is a breakup of the entire amount that you will pay to the bank or the financial institution. It will tell you the amount that will be paid back as the principal and the amount that will be paid as the processing fee for the loan. It will also tell you how much of the repayment will be the interest on the loan.
The amortisation table is a snapshot of the progression of the loan and tells you how much you will have paid back at the end of each year, as the loan progresses. It also helps you understand how the interest on the loan will be paid back. It also shows you how much of the initial EMIs will be the interest and how much will be the principal will be.
Most banks offer car loans up to 85% of the on-road price or ex-showroom price of the car. Tip to borrowers - make a higher down payment to lower the cost of your car loan. Let’s say the total price of your dream car is Rs.15 lakh and you have Rs.5 lakh to put as down payment, then a car loan of Rs.10 lakh can be used to pay the remainder of the cost.
To calculate the monthly cost of your car loan, use the free online EMI calculator. Enter the principal loan amount, loan tenure, interest rate and processing fee into the tool and click on the ‘calculate’ button. You will get instant and accurate results in the form of an amortisation table, a pie-chart, and a colorful bar graph.
The amortisation table represents the periodic repayment schedule of your car loan. It consists of the monthly EMIs, interest payments, and the outstanding dues after each EMI payments.
BankBazaar has customised its EMI Calculator to suit different loan schemes. To calculate your EMIs on your personal loan, navigate to the Personal Loan EMI Calculator provided under the sites ‘Financial Tools’ section. Similarly, you can calculate EMIs on your auto and home loans using BankBazaar’s Car Loan EMI Calculator and BankBazaar’s Home Loan EMI Calculator, respectively.
Should you find yourself flush with cash, you may decide to prepay your loan (i.e. pay an extra amount towards principal). If so, you can calculate your new EMIs by adjusting for the amount you wish to prepay. This will let you know how much interest you save by reducing the principal outstanding. (interest is calculated on the principal outstanding)
When you are planning to take a loan for your financial needs, you need to calculate the amount that you will have to pay through equated monthly installments (EMIs) in order to match with your repayment capability. For this, you will need to factor in the loan amount and rate of interest (ROI) along with the term of your loan. However, your equated monthly installments (EMIs) can be impacted for a number of reasons. Mentioned below are the scenarios when a loan EMI can change:
Pick the most affordable loan by comparing EMIs for different loan tenures. This can be done by altering the loan period in the calculator; keeping the loan amount and interest rate the same. By lengthening the loan period for a chosen loan scheme, the EMI amount can be reduced. Using the calculator, you can quickly compare EMIs for different tenures and choose the one that most suits your budget.
Understand loan repayment schedules by altering the interest rate, keeping loan amount and tenure the same. In case of fixed rate loans, interest rates remain constant over the loan tenure. In this case, EMIs also remain constant. This is usually the case with car loans and personal loans.However, in case of floating rate loans, interest rates can vary with movements in market rates. In this case, EMIs will change. This is particularly beneficial for home loans.Input the new interest rate in BankBazaar’s EMI Loan Calculator to compare EMIs before interest rate changes and after. A new amortization schedule is also generated to reflect changes in EMIs.
A fixed rate of interest is one where the interest rate on a loan remains fixed throughout the loan repayment period (loan tenure). This type of interest rate is comparatively higher than a floating rate of interest. Fixed rate of interest is better for those who don't prefer the risk of fluctuation that is an integral part of a variable interest rate. In the case of a fixed rate of interest, the loan EMI remains the same throughout the loan tenure.
The online loan EMI calculator can be used to calculate loan EMIs with a fixed rate of interest. Depending on the results, the borrower can carefully plan his or her monthly budget in order to maintain a low debt-to-income ratio. All one has to do is enter the loan amount, loan tenure, and fixed rate of interest rate into the tool and click on the ‘calculate’ button to get instant and accurate results. If there is a processing fee charged by the bank, enter the processing fee into the too. If you want to prepay your loan before the end of its loan tenure, you can enter the prepayment amount into the tool to get a revised amortization schedule. Banks charge a prepayment penalty for loans with a fixed rate of interest.
Floating rate of interest changes depending on the market-lending rate. It is also known as variable rate of interest. If the lending rate increases, the floating interest rate will also increase. Due to the risk of fluctuation, the floating rate of interest is usually lower than the fixed rate of interest. With a floating rate of interest for a specified loan tenure, you can either expect your EMI to reduce or increase depending on the rise in the interest rate.
When there is an increase in the floating rate of interest on your home loan, the bank will give you the option to either increase your EMI and keep the same loan tenure or to keep your EMI the same and increase the loan tenure. If your loan tenure reaches the upper limit, then the bank will give you the option to prepay a part of your loan. Using a home loan EMI calculator for various combinations of loan tenure and interest rates can help you make a smart decision with regards to loan repayment. Some banks may waive off the prepayment penalty fee for loans with a floating rate of interest.
The home loan EMI calculator comes packed with features that can range from the obvious to the not so obvious. It, obviously, shows the exact EMI that will be payable every month for a specific amount borrowed and a specific tenure. The feature that are not so obvious is the fact that this calculator can also provide the facility to include planned pre-payments towards the home loan. This means that when the calculator shows you the instalments payable, it has already accounted for prepayments and has also included them when showing the breakup of the expenses. The detailed break up will include the amount borrowed, the interest payable, the amount you will pay through prepayment, the processing fee and the fee for prepayment.
The car loan calculator is a tool that can be used to calculate the exact amount that you will have to pay on a monthly basis when you decide to take a car loan. This calculator too will collect information related to the amount you wish to borrow, the interest rates, the processing fee and the tenure of the loan and provide you with the amount that you will pay every month. Down payments for the vehicle don’t have to be considered when using this calculator and it too comes with the breakup of the expenses and the amortisation table.
The personal loan EMI calculator is the ideal tool for deciding how much you can afford to pay back since it is specific to personal loans. It too collects details of how much you wish to borrow, the duration, interest rates and the processing fee for the loan. It can also be customised to take into account any prepayments that you intend to make before telling you the EMI that you will have to pay.
Business loans like any other type of loans are repaid through equated monthly installments over a specified period of time. Here again, carrying out manual EMI calculation can be time-consuming and prone to human errors. Therefore, it is advisable to use an online business loan EMI calculator that is available on the bank website or a reliable third-party website. The tool can be used any number of times for free. It is not only simple and easy to use but also instant and accurate in terms of results. One major advantage of using a business loan EMI calculator is the flexibility to try out different combinations of loan tenure, loan amount, and interest rate in order to save money on interest payments. Business Loan EMI is calculated using the below formula:
E = P*r* (1+r)^n/([(1+r)^n]-1), where E is the equated monthly installment, P is the principal loan amount, r is the interest rate, and n is the loan tenure.
Enter the business loan amount, interest rate, and loan tenure into the tool and click on the ‘Calculate’ button. You will get an amortization table which represents your periodic loan repayment schedule. The table will consist of the EMIs, outstanding dues after each EMI payment, and interest payment. Using the business loan EMI calculator, you can pick a suitable loan tenure and a loan amount within your repayment capacity. Sometimes, borrowers choose to prepay a part of the loan amount before the end of the tenure in order to reduce the repayment period or the interest payment. The EMI calculator can also be used to get a revised loan repayment schedule that includes business loan prepayment.
A simple interest loan EMI calculator can help you calculate the simple interest on a given loan amount for a specified loan tenure at the applied rate of interest. The tool is simple and easy to use. All you have to do is input the borrowed amount, the simple interest rate, and the loan tenure into the tool. Click on the ‘calculate’ button to get instant and accurate results. For example, if you borrow a loan of Rs.3 lakh for 3 years at a simple interest rate of 3% p.a., you have to pay a simple interest of Rs.27,000 which is Rs.750 per month.
Apart from the online calculators, EMI calculators can also be configured in an Excel sheet. To do this you will need to know the formula that makes an EMI calculator works and also how to use formulae in excel sheets. The one disadvantage of the excel sheet calculator is that you need to know how to configure it and also need to input the interest rate after calculating the monthly rates. It also does not take into account the processing fee. By contrast, the online EMI calculator can take the interest rates as annual rates and convert them to monthly rates on its own. It can also include the processing fee and other smaller features like prepayments.
Calculating the EMI for your loan is crucial to determine whether it matches your repayment capability or not. Applying for a loan that exceeds your ability to repay the debt can lead to the rejection of your application. If you apply for a loan wherein the EMI is equal to your maximum repayment ability, your chances of defaulting severely increases. In case you are not able to check your EMI using an online EMI calculator, you can also do the same using an Excel spreadsheet. All you need to do is use the PMT function to calculate your monthly installments. The syntax for the excel function is:
PMT (rate, nper, pv)
pv = The principal amount or the present value
rate = The fixed rate of interest at which the loan is borrowed
nper = The number of payments to be made to repay the entire debt
The mathematical formula for calculating EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]. (P is the principal loan amount, R rate of interest per month and N is the the number of monthly instalments). Manual calculations are too complicated to perform accurately, which is why many borrowers are left confused after availing a loan. Understanding this pain-point led BankBazaar to develop one of the easiest and most user-friendly online Loan EMI Calculators.
A. In most cases they can be the same since all three loans work off the same basic set of information like amount borrowed, prepayments, tenure, interest rates and processing fee however with some calculators there could be a restriction placed on the amount to borrow based on the type of loan.
A. The only difference between the two is that with a calculator, it is a ready to use tool whereas with an excel sheet, you may have to program the calculator before you start using it. Such programing can be a little tedious and complicated, especially if you are not very comfortable with the software which makes the calculator the preferred choice.
A. Yes. These days most, if not all, banks have calculators, specific to various loans, available on their websites.
A. The simplest answer is that it’s fast and it’s convenient. This means that you can do multiple calculations in minutes where such calculations many take longer were you to sit down with a pen and paper. These calculators are also super accurate so it eliminates the possibility of errors in calculations, provided you provide accurate data.
A. When it comes to the EMI, assuming that the bank will approve the amount and tenure, the exact EMI that you will have to pay may differ slightly since there is a chance that things like the interest rates and the processing fee may be a bit different from what you used while calculating the EMI.
The bank will charge a penalty fee if a borrower misses an EMI payment. A missed or delayed EMI payment will reflect on your credit report. Not making loan EMI payments on time can have a negative effect on your credit score.
Enter the loan amount, loan tenure, and interest rate into the personal loan EMI calculator and click on ‘Calculate’. The result is as follows - your monthly loan EMI is Rs.11,249. The total cost of your personal loan is Rs.6,74,938 where Rs.5 lakh is the principal loan amount and the total interest payment is Rs.1,74,938.
In the case of a business loan and home loan, banks offer floating rate of interest. Therefore, your loan EMI may change with the change in interest rate. Some banks allow you keep the EMI constant while increasing the loan tenure. Loan prepayment can also change your EMI. Banks will give you the option to either keep the EMI constant and decrease the loan tenure or reduce the EMI and keep the loan tenure the same.
Calculating the EMI before applying for a loan will help you choose a suitable loan amount and loan tenure. Based on the EMI calculation, you can adjust the loan amount and loan tenure to keep the total cost of your loan within your repayment capacity. You can also decide whether you want to prepay the loan without risking a higher interest payment.
Pre-closing your loan before the end of its tenure can have a negative effect on your credit score. Making timely EMI payments can help you improve your credit score. Therefore, opt to prepay a part of your loan (not the whole loan) and reduce the loan tenure to save up on interest payments. Banks charge a penalty fee for prepayment.
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The most common thing everyone asks when they avail a loan is “What are EMIs? How do I know how much I have to repay every month to clear my loan?”
Understanding EMIs and amortization tables is probably the most confusing part of the entire process of availing any kind of loan. The EMI, or Equated Monthly Instalment, is important because it signifies monthly outflows towards repayment of the loan.In order to calculate EMI for your loan, you should first understand its components:
The formula consists of using the loan amount, interest rate and tenure of the loan (in months): to find out your EMI (Equated Monthly Instalments)M = No of months to pay the loan
For example: You avail a home loan of Rs.5 lakhs and the bank disburses the loan in instalments of Rs.1 lakh each at each stage of completion of the house being funded. Once the first instalment is disbursed i.e.Rs.1 lakh, the borrower begins making interest payments. Pre-EMIs do not reduce the principal component of the loan amount..
Here, EMIs i.e. interest + principal are repaid only once the entire loan amount is disbursed.
If you plan to sell the house, or are expecting large income inflows orare anticipating higher returns from the property funded by the loan, it is better to opt for Pre-EMIs. However, if you are not sure and do not want to take any undue risks, Full EMIs are a better option.
Manoj Kumar, 29, a Bangalore-based MNC employee, fulfilled his dream of owning a new a car in 2010. He bought a car for about Rs 5.95 lakh. He managed to do this by availing a car loan. The down payment he was required to pay was Rs 1.5 lakh and the remaining amount was funded by his auto financier. The car loan interest rate was 12% p.a. and the loan tenure was set at four years. As per the terms of the agreement, he currently pays a monthly EMI of Rs. 11,700. Manoj goes by the payment schedule as set out by the bank. But, how does he verify the amounts payable as per the schedule? Is there any way he can reduce or increase the EMI based on his financial situation?
Calculating EMIs can be confusing and tedious. There are many borrowers who find it hard to understand EMI calculations and Manoj is no exception. Most borrowers are unsure whether they are paying the right amount as EMIs; in many cases, the lenders themselves may have erred in their calculations.
The irony of it all it that EMIs are not that hard to understand. Using MS Excel, a very popular tool used the world over, anyone can easily calculate the amounts due as EMIs.
An Excel spreadsheet is a software specifically designed for mathematical calculations and performs calculations using a number of preset formulae. This makes it one of the most convenient tools to calculate and understand EMIs or repayment schedules.
To calculate loan EMIs using Excel, you have to use the function ‘PMT’ . You will need to know the rate of interest (rate), the tenure of your loan (nper) and, the value of the loan or present value (PV). Apply this to the formula: =PMT(rate,nper,pv).Example:
If you were to choose a different frequency, say a quarterly payment schedule as opposed to monthly payments, all you would have to do is factor this into the formula to get the desired results.Example:
Its really as simple as plugging in data and receiving results, completely eliminating confusion and anomalies. This not only helps you as a borrower in choosing the right loan plan but also helps you adjust your EMIs according to your financial situation.
HDFC Bank offers various loan products meant for customers of different demographics and incomes. Calculating EMI on any of the loans can be done through a few simple clicks at BankBazaar which specializes in providing free financial services to customers and general visitors.
Availing loans can be a very tricky proposition if you don’t know the underlying details such as EMI amounts, interest rates, processing charges and amortization. You may be looking for a car loan, personal loan, or even a house loan, and the best place to begin your search starts from the Internet.
BankBazaar offers a dedicated EMI Calculator tool that will provide you with information regarding the loan break-up and amortization details. You can access this tool by following these steps:
Once you select an option as detailed above, you will be taken to a new page with different dynamic fields. To use the HDFC Loan EMI Calculator, please follow the steps outlined below:
Once you are done with filling the details, click on ‘Calculate’. The results will appear just below the ‘Calculate’ button. The results are shown in terms of ‘Your Monthly Car/Home/Personal Loan EMI’, ‘Loan Break-up’ and ‘Amortization Details’.
EMI Amount: The monthly amount you have to repay for your particular loan product, according to the details entered by you.
Loan Break-up: Loan Break-up section will show details such as the loan amount, total interest payable, processing fee, and the total repayable amount. The results are also shown aesthetically in graphical format.
Amortization: This result will show details of the amount to be paid at any point during the loan tenure such as principal paid, interest paid, outstanding balance, and total payment made.
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Due to selling in American currency by exporters and bankers, the rupee inched up to 70.39 early Thursday. However, local currency opened at 70.53, down by 6 paise.
The continuous rise in global crude oil prices led to the rupee to close at 70.47 on Wednesday, extending its loss by 25 paise. Speculation that talks between China and the United States ahead of the FOMC could resolve their stand-off led to the US paper dollar to rise yesterday against its major crosses.
7 February 2019
According to the statements of the Managing Director and CEO of Kotak Mahindra Bank, Uday Kotak, during a panel discussion at India Business Leader Awards (IBLA) held in Mumbai on 17 January 2019, there might be chances that the rates of interest might fall by 50 basis points (bps). The Monetary Policy Committee is an independent body. However, the current trend of inflation prompts the need for the interest rates to come down and there is room for it as well.
During the MPC meeting held in December 2018, the Reserve Bank of India (RBI) decided not to change the key policy rates in its fifth bi-monthly policy. Since the rates remained unchanged, the repo rate continues to stand at 6.50%, while the reverse repo rate remains 6.25%. The next monetary policy review meeting is scheduled to take place on 7 February 2019.
Mr. Kotak also stated that several countries including the U.S. has started to realise that the 10-Year yield stands short at around 2.7% instead of the expected 3%-3.5%. Hence, the U.S. regulatory body is likely to keep the interest rates unchanged or increase them by a maximum of 25 basis points in 2019. Commenting on the ownership issue of banks, he further added that the next government should consider it seriously, and re-evaluate at the role of the state if needed.
18 January 2019
With effect from 14 January 1019, the fixed deposit rates have been revised by Bank of Baroda. Money can be deposited in fixed deposits over a specific period of 7 days to 10 years. Interest rates of fixed deposits are subject to change from time to time.
The revised interest rates are 4.5% (7 days to 14 days), 4.75% (15 days to 45 days), 5% (46 days to 90 days), 5.75% (91 days to 180 days), 6.5% (181 days to 270 days), 6.5% (271 days to less than a year), 6.7% (1 year), 6.85% (Above 1 year and to 400 days), 6.8% (Above 400 days and less than 2 years), 6.7% (Above 2 years and less than 3 years), 6.7% (Above 3 years and less than 5 years), 6.7% (Above 5 years and less than 10 years), and 7% (444 days, only for Baroda Samriddhi Deposit Scheme). According to the Bank of Baroda’s website, branches may pay an additional interest for senior citizens of 0.5% for less than Rs.1 crore domestic term deposit.
16 January 2019
The GST returns that are mandated for carrying forward the tax credit for errors that are not IT related from the previous regime may now be able to be amended by businesses in India. A committee for the redressal of IT grievances has been directed by the GST Council to provide a quick solution to the problems. This is because of the denial of thousands of crores claimed by businesses as tax credit due to the errors in the filing of returns. This has prompted many companies to approach the judiciary.
The government’s flagship scheme – the Pradhan Mantri Mudra Yojana – to support the country’s microenterprises has seen a spike in the non-performing assets (NPAs). The Reserve Bank of India (RBI) has raised a red flag about this. Bad loans to the amount of Rs.11,000 crore have been flagged.
There might be a relaxation in the framework of Prompt Corrective Action (PCA) that has been a source of stress for the banking industry. This is expected to be worked out by the Reserve Bank of India and the finance ministry. This will be offered to those who have addressed bad loans in an improved manner.
15 January 2019
According to the World Gold Council, gold demand will be determined by dollar movement, monetary policy in key economies, and the performance of financial markets in 2019. Normally, during rough markets gold demand improves as it is considered to be a safe haven.
Though there may be some obstacles from high interest rates and a strong dollar, the council expects gold to be an attractive option due to expansion of protectionist economic policies and increased market uncertainty.
14 January 2019
Traditional investment options have always been popular among most of the Indian public. One of these is the Fixed Deposit (FD) that not only serves as an opportunity for savings but also works as a tax saving instrument. In 2006, the State Bank of India (SBI) launched the SBI Tax Savings Scheme which offered customers FDs in order to save tax.
The minimum deposit for an FD with SBI is set at Rs.1,000 and multiples of the same. The maximum deposit cannot exceed Rs.1.5 lakh if they wish to avail tax deductions under Section 80C of the Income Tax Act, 1961. The minimum tenure for an SBI FD is 5 years and the maximum tenure is 10 years.
The rate of interest for the FDs under this scheme is similar to the interest for the regular FDs. For retail domestic term deposits less than Rs.1 crore the interest rate is 6.85% and 7.35% for senior citizens. The FD cannot be withdrawn before 5 years.
10 January 2019
Federation of Indian Chambers of Commerce and Industry (FICCI) President Sandip Somany has said high interest rates need at least a 100 basis points cut as they are a hurdle to investments. He further added that due to the low inflation present now, a massive cut in interest rates is most important to trigger economic growth.
Somany, who recently assumed charge of the apex industry chamber, also said that interest rates are at historic highs in India, and the low inflation present now does not justify it.
7 January 2019
Bank fixed deposits provide return on investments that is relatively stable as compared to the volatility of stock markets. Fixed deposits not only offer fixed returns but some also offer deductions in income tax. Deposits which offer premature withdrawal facility do not come with income tax deductions. Those which do not have premature withdrawal facility but come with a lock-in period offer tax benefits.
With effect from 1 December 2018, Axis Bank revised its fixed deposit rates which are applicable for a wide range of tenors across domestic term deposits. For deposits of Rs.1 crore for a tenor of one year, Axis Bank pays an interest of 7.5%. State Bank of India also revised its interest rates on fixed deposits on selected maturities which came into effect from 28 November 2018. SBI’s interest rate for Rs.1 crore deposit for one year is 6.70%. For the same amount and tenure, HDFC Bank offers an interest rate of 7.50% while ICICI Bank offers 7.95%.
20 December 2018
Fixed Deposits (FDs) are considered to be an extremely safe investment option by people of all ages. These popular banking instruments not only give guaranteed returns to the subscribers but are also completely risk-free. An individual can open a fixed deposit with any government or private bank anytime at the latest interest rate offered by the bank. The State Bank of India, HDFC Bank, ICICI Bank, YES Bank are some of the leading banks in India which allow customers to open a fixed deposit at a great interest rate. While the FD interest rates offered by the ICICI Bank is between 6.25% to 7.25% at present, the rates offered by the State Bank of India ranges between 6.35% to 6.85%, and for the HDFC Bank, it is within 6.5% to 7.25%.
19 December 2018
The State Bank of India has decided to increase the interest rates on fixed deposits ahead of the 5th bi-monthly monetary policy review of RBI this year. The lending rates for the SBI fixed deposits with a maturity period ranging between 1 to 2 years has been increased by RBI. The hike in the interest rate is applicable to FDs which are below Rs.1 crore. This revision of the interest rates has come after other leading banks like HDFC Bank and ICICI had already increased their rates. On its official website, SBI has updated the hike of the interest rates by 0.05% to 0.10%. The bank also informed that the revised rates will be applicable to all the fixed deposits that are below Rs.1 crore. After the recent revision, the fresh interest rates of SBI FDs having a maturity period of 1 to 2 years is 6.80%, which was 6.7% previously. Due to the rate change, the interest rate for senior citizen FDs has also increased to 7.30%.
18 December 2018