Fixed deposit accounts which have a lock-in period of five or 10 years also offer income tax benefits.Fixed deposits (FDs) are secure financial instruments, which offer guaranteed returns.

FD interest rates vary according to the tenure of the fixed deposit and across banks.

In a fixed deposit account, money is deposited for a specific time, which varies from 7 days to ten years.

Some fixed deposits come with a premature withdrawal facility while some require a compulsory lock-in period.

Recently, banks such as Kotak Mahindra Bank, HDFC Bank,ICICI Bank have revised their fixed deposit rates.Here is a comparison of fixed deposit (FD) rates offered by State Bank of India (SBI), Kotak Mahindra Bank, Axis Bank, HDFC Bank and ICICI Bank:Fixed deposit (FD) rates offered by Kotak Mahindra Bank (Below Rs.

1 crore):Interest Rates for Domestic / NRO / NRE Fixed Deposits effective from August 9, 2018 RegularSenior CitizenMaturity Periods - Premature Withdrawal AllowedLess than Rs 1 CroreLess than Rs 1 Crore7 - 14 Days3.50%4.00%15 - 30 Days4.00%4.50%31 - 45 Days5.00%5.50%46 - 90 Days5.50%6.00%91 - 120 Days6.00%6.50%121 - 179 days6.25%6.75%180 Days6.50%7.00%181 Days to 269 Days6.75%7.25%270 Days6.75%7.25%271 Days to 363 Days7.00%7.50%364 Days7.00%7.50%365 Days to 389 Days7.25%7.75%390 Days (12 months 25 days)7.25%7.75%391 Days - Less than 23 Months7.25%7.75%23 Months7.30%7.80%23 months 1 Day- less than 2 years7.30%7.80%2 years- less than 3 years7.10%7.60%3 years and above but less than 4 years7.10%7.60%4 years and above but less than 5 years7.00%7.50%5 years and above up to and inclusive of 10 years6.50%7.00% Fixed deposit (FD) rates offered by State Bank of India (Below Rs.

1 crore):Revised from July 30, 2018:TermInterest rate for general public w.e.f.

30.07.2018Interest rate for senior citizens w.e.f.

30.07.20187 days to 45 days5.756.2546 days to 179 days6.256.75180 days to 210 days6.356.85211 days to less than 1 year6.46.91 year to less than 2 year6.77.22 years to less than 3 years6.757.253 years to less than 5 years6.87.35 years and up to 10 years6.857.35 FD interest rates offered by ICICI Bank on domestic, NRO NRE deposits (less than Rs 1 crore): Tenure PeriodRate of Interest (% p.a.) w.e.f August 14, 2018GeneralSenior Citizen*7 days to 14 days44.515 days to 29 days4.254.7530 days to 45 days5.5646 days to 60 days5.756.2561 days to 90 days66.591 days to 120 days66.5121 days to 184 days66.5185 days to 289 days6.57290 days to less than 1 year6.757.251 year to 389 days6.757.25390 days to 2 years77.52 years 1 day upto 5 years7.257.755 years 1 day upto 10 years77.55 Years Tax saver FD(Max upto Rs.

1.50 lac)7.257.75 FD interest rates offered by HDFC Bank applicable from August 6, 2018 for deposits below Rs 1 crore:Period< 1 CroreInterest Rate (per annum)**Senior Citizen Rates (per annum)7 - 14 days3.50%4.00%15 - 29 days4.25%4.75%30 - 45 days5.75%6.25%46 - 60 days6.25%6.75%61 - 90 days6.25%6.75%91 days - 6 months6.25%6.75%6 mnths 1 day- 6 mnths 3 days6.75%7.25%6 mnths 4 days6.75%7.25%6 mnths 5 days- 9 mnths6.75%7.25%9 mnths 1 day- 9 mnths 3 days7.00%7.50%9 mnths 4 days7.00%7.50%9 months 5 days - 9 months 15 days7.00%7.50%9 months 16 days7.00%7.50%9 months 17 days < 1 Year7.00%7.50%1 Year7.25%7.75%1 year 1 day - 1 year 3 days7.25%7.75%1 year 4 days7.25%7.75%1 year 5 days - 1 Year 15 Days7.25%7.75%1 Year 16 days7.25%7.75%1 year 17 days - 2 Years7.25%7.75%2 years 1day - 2 Years 15 days7.10%7.60%2 Years 16 days7.10%7.60%2 years 17 days - 3 Years7.10%7.60%3 years 1day - 5 years7.10%7.60%5 Years 1 Day - 8 Years6.00%6.50%8 Years 1 Day - 10 Years6.00%6.50% Fixed deposit (FD) rates offered by Axis Bank (Less than Rs.

1 crore):PERIODINTEREST RATES (% p.a.) GeneralSenior Citizen7 days to 14 days3.53.515 days to 29 days3.53.530 days to 45 days5.55.546 days to 60 days6661 days < 3 months663 months < 4 months664 months < 5 months665 months < 6 months666 months < 7 months6.256.57 months < 8 months6.256.58 months < 9 months6.256.59 months < 10 months6.56.7510 months < 11 months6.56.7511 months < 1 year6.56.751 year < 13 months7.17.7513 months < 14 months7.17.7514 months < 15 months77.6515 months < 16 months77.6516 months < 17 months77.6517 months < 18 months77.6518 Months < 2 years77.652 years < 30 months77.6530 months < 3 years77.53 years < 5 years77.55 years to 10 years77.5 The fixed deposit accounts which have a lock-in period of five or 10 years also offer income tax benefit under Section 80C of the Income Tax Act.

However, income earned on fixed deposits is taxable.

Fixed deposit interest is tax-free until a certain threshold, after which it is chargeable.

After the interest earned exceeds Rs.

10,000, tax is deducted at source.