Private sector lender IDFC First Bank has changed the interest rates on fixed deposits (FD). After this change, on making FD in the bank, ordinary citizens will get annual interest ranging from 3.0% to 8.0%. At the same time, the bank is offering 0.50% more interest to senior citizens as compared to normal citizens. In such a situation, the bank will give them annual interest ranging from 3.50% to 8.50%. Changes in interest rates have been made on FDs of less than Rs 2 crore. The new rates are applicable from today i.e. March 21. Tax is also to be paid on the interest received from FD. The interest received from FD is completely taxable. Whatever interest you earn on FD in a year is added to your annual income. On the basis of total income, your tax slab is determined. Interest income earned on FD is considered “Income from Other Sources”.
