Following the Reserve Bank’s repo rate increase, banks are now raising the interest paid on FDs and savings accounts. RBL Bank, a private institution, has announced an increase in savings account interest rates. Following the change in interest rates, this bank’s account holders will now get interested at a maximum rate of 6.25%.
The bank’s website states that these new rates are effective as of today, September 5, 2022. Let us inform you that SBI, the biggest bank in the nation, is presently offering a maximum interest rate of 5.50% on FDs. In this case, I’m selling FDs on RBL Bank Savings Accounts with higher interest rates.
How much interest will be available on
savings accounts Deposits up to Rs. 1 lakh in RBL Bank savings accounts will earn 4.25% interest; deposits between Rs. 1 lakh and Rs. 10 lakh will earn 5.50% interest. Deposits worth more than Rs 10 lakh but less than Rs 25 lakh will get 6% interest, and deposits worth more than Rs 25 lakh but less than Rs 1 crore will earn 6.25% interest. Let us say that this rate was 6% before, but has since increased by 25 basis points as a result of the Reserve Bank raising interest rates.
When will the interest be credited?
The interest on savings accounts will be credited to the account on a quarterly basis, according to RBL Bank, and will be added to the balance on a daily basis. The interest funds will be deposited on the 30ths of June, September, December, and March each year.
How much interest is on savings accounts in other banks?
|Bank||Rate of interest (%)|
|IDFC First Bank||3.50-6.00|
|Punjab National Bank||2.70-2.75|
|bank of India||2.90|
Additionally, the tax must be paid on interest received from the savings account. Interest income from savings accounts at banks, co-operative societies, and post offices up to 10,000 rupees per year is tax-free under section 80TTA of the Income Tax Act. Anyone under 60 years old or HUF can receive its benefit (Joint Hindu Family). At the same time, this exemption is worth 50,000 rupees for senior citizens. If the income is higher than this, TDS is subtracted.
What to do if your total income is not taxable?
The bank does not deduct TDS if the yearly interest income from your savings account, FD, or RD is greater than 10,000 but the total annual income (including interest income) is not high enough to be taxed. Seniors must submit Form 15H to the bank and Form 15G to other parties for this. Self-declared forms include Form 15G and Form 15H. You claim that your income is above the tax threshold in this. Filling out this form keeps one out of the tax net.
What is TDS?
If a person has any income, the remainder is handed to them after taxes have been deducted from it. TDS stands for the sum that was subtracted as tax. Through TDS, the government collects taxes. It is taken off of a variety of sources of income, including wages, interest, and commissions from investments, among others. Any institution that is paying and falls under the TDS umbrella deducts a specific sum as TDS.
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