Fixed Deposit Rates: Here's what SBI, PNB, HDFC Bank and ICICI Bank are offering on FDs

Fixed deposit (FD) schemes are one of the most popular tax-saving schemes available in banks as well as post offices for a period ranging from 7 days to 10 years. There is no cap on the money that can be invested for a fixed period. However, the amount invested cannot be withdrawn until the end of the tenure.

The country's largest lender State Bank of India on August 23 slashed interest rates on fixed deposits across various tenure by up to 0.5 percentage point, a move which will lower returns for savers. One basis point is one-hundredth of a percentage point.

In view of the falling interest rate scenario and surplus liquidity, SBI realigned its interest rate on Term Deposits with effect from August 26, 2019, the bank said in a statement. The move to reduce the interest rate on fixed deposits by the country's largest lender is expected to be followed by other lenders.