All About Fixed Deposit,FD

Fixed Deposit is one of the simplest and most used Investment product in India. This article covers  Fixed Deposits in Detail.

All about Fixed Deposit

For someone who does not want any kind of uncertainty with regard to his or her investments, Fixed Deposits is the right choice. But Banks have been reducing rates on Fixed Deposits

  • The fixed deposit schemes offered by most banks can be availed for tenures ranging from as short as seven days to as long as 10 years. Few of the banks, such as the State Bank of Patiala, IDBI Bank, the Ratnakar Bank, etc. offer FDs that stretch to 20 years as well.
  • The interest on FDs is compounded on a quarterly basis.
  • Periodic Payouts , monthly or quarterly, are available.
  • Most of the banks offer from 0.25% to 0.50% extra to senior citizens.
  • Banks offer a higher interest for deposits of Rs. 1 crore and above. These deposits are called Bulk Deposits.
  • Banks offer Loan/Overdraft against the amount available in Fixed Deposit. The interest is generally 0.5% to 1% more than that offered to FD.
  • TDS (Tax deduction at source) at the rate of 10% is deducted if the interest income is more than Rs 10,000 in financial year per bank
  • There might be penalty for pre-mature withdrawal of Fixed Deposits

Lets Learn about Fixed Deposit Rates

Best Fixed Deposit Rates

Best Fixed Deposit Rates over different periods of time are given below. Increased liquidity on the back of the rise in cash deposits by customers, due to the government’s demonetisation move.and Experts expect RBI to cut key rates.  Interest rates of FDs could be headed further downwards.  Our article covers Best Fixed Deposit Interest Rates, FD rates and FD interest of the major Banks like SBI, State Bank of India for period of  7 days-10 years giving FD interest rate of 5.25% p.a.-7.00% p.a.

Period of the FD  Bank and Interest Rate
Less than a year
  • RBL 7.50% (241 days to 364 days)
  • SBI 5.5%-7% (7 days < 1 year)
  • SBI 7% (211 days to less than 1 year)
  • ICICI Bank 5.50-6.95%
1 year
  • RBL 7.75%
  • SBI 6.9%
  • ICICI Bank 7.25%
2 years
  • RBL 7.85%
  • SBI 6.85%
  • ICICI Bank 7.25%
3 years
  • RBL 7.70%
  • SBI 6.5%
  • ICICI Bank 7.25%
5 Years
  • RBL 7.70%
  • SBI 6.5%
  • ICICI Bank 7.25%

What is Fixed Deposit?

Fixed Deposits are bank deposits for a fixed or specified period chosen by investor or depositor at a fixed rate of interest. You can deposit money for as short a period as 7 days and upto 10 years. When you open a fixed deposit with the bank then you are lending money to the bank and it pays you interest. As interest rate and time period are fixed this investment product is called as Fixed Deposit.  Deposit up to Rs 1 lakh in any bank is protected under the Deposit Insurance & Credit Guarantee Scheme of India

Each bank or financial institution that is offering fixed deposits fixes its own deposit rates. Interest rates are subject to change from time to time. Interest of FD varies based on the time period, the amount which is deposited. Most of the banks offer higher interest rate(0.5% more) to Senior Citizens.

Our article Overview of Fixed Deposits covers fixed deposit in detail.

Fixed Deposit and Interest Rates

New UAN Unified Portal for Employers

EPFO has revamped its website or portal for the convenience of both employers and employees.  An employer who provides Employee Provident Fund needs to file ECR returns and pay the EPF dues by the 15th of each month. This article is about New UAN Unified Portal for Employers, it talks about How is new UAN Unified Portal for Employers different from earlier version, how can an employer register at the new UAN website, How to Login to the New UAN Unified Portal for Employers and how to generate UAN for new employee, how to link UAN etc. This post is only for employers, employees can refer New UAN Unified Portal for Employees for hassle-free task performance.

UAN Unified Portal for Employers

Universal Account Number (UAN) is a unique number given to every EPF member that is permanent and does not change with the job, just like your PAN number. An employer has to become the member of EPF if there are 20 or more employees of specified establishment types. Other establishments, not statutorily required to register, can register voluntarily. Employer responsibilities for EPF are

  • Generate UAN for the new employee and upload KYC information.
  • Update family particulars and nomination of all employees who are EPF members.
  • Deduct employee share from employee wages, add matching employer contribution, EDLI contribution and administrative charges and remit to EPF along with prescribed return immediately after disbursement of salary. (last date 15th of the month).

To facilitate easy compliance by the employers, EPFO has provided online facilities starting from the registration of the Establishments, filing of monthly returns integrated with online payment of the contributions and charges.

In Dec 2016, EPFO came up with Unified Portal for Employers which it calls UAN 2.0. It os Unified Portal for employers with UAN Based simplified Electronic Challan cum Return filing system. So in UAN 2.0,

  • The Electronic Challan cum Return would be UAN based instead of member ID based.
  • The linking of the existing UAN of the member with the present employment would necessarily be done by the employer before the filing of UAN based ECR. Earlier this was done after filing of ECR based on member IDs.
  • The member details i.e. name of member, date of birth, father’s / Husband’s name etc. would be same for all the employments, since the details would be fetched from UAN database of member
  • UAN upfront allotment introduced. The UAN in respect of member with first-time employment would be got generated by the employer prior to the filing of ECR for that member. In the earlier version, the employer used to file ECR with member IDs and the UAN was allotted later on the basis of first-time declaration made by the employer
  • New UAN Unified Portal for employers has introduced the multi-banking payment system.
New UAN Unified Portal for Employers

New UAN Unified Portal for Employers- Home page

EPFO Employer Registration on the new UAN Unified Portal for Employers

To login into the employer UAN portal, you have to be registered at this portal.  If you are a new employer, here are steps for registration and EPF Employer login for the first time Register your company at EPFO website – Application for Employer Registration. Details one needs to provide are

All About EPF,EPS,EDLIS, Employee Provident Fund

Employee Provident Fund is a retirement benefit applicable only to salaried employees of private organizations. Government Employees do not contribute to EPF but to NPS from 2004.  It is a fund to which both the employee and employer contribute 12% of the basic salary each month. This page has articles and link to articles covering EPF, EPS in Detail.  You will come to know What is EPF, What is EPS, What is EPF Private Trust, How much pension will one get under EPS, VPF,

When one says EPF it means

  • Employee Provident Fund (EPF)Employee’s contribution is matched by Employer’s contribution(till 12%). The employer contribution is exempt from tax and employee’s contribution is taxable but eligible for deduction under section 80C of Income tax Act. The EPF amount earns interest as declared by Government.
  • Employees’ Pension Scheme (EPS) of 1995 offers pension on disablement, widow pension, and pension for nominees. 
  • Employees Deposit Linked Insurance Scheme (EDLIS) provides for a lump sum payment to the insured’s nominated beneficiary in the event of death due to natural causes, illness or accident, while in job.

UAN is Universal Account Number is a 12-digit  number allotted to employee who is contributing to EPF. Universal number is a big step towards shifting the EPF services to online platform and making it more user-friendly.  Please note that The universal account number remains same through the lifetime of an employee. It does not change with the change in jobs.  Now one has UAN number and PF number also called as Member Id. Our article All About UAN or Universal Account Number of EPF discusses UAN in detail.


This page has articles and link to articles covering EPF, EPS in Detail.

Basics of Employee Provident Fund

Employee Provident Fund (EPF) is implemented by the Employees Provident Fund Organisation (EPFO) of India. It is one of the largest social security organisations in the world in terms of members and volume of financial transactions undertaken. An establishment with 20 or more workers working in any one of the 180+ industries ( given here) should register with EPFO. EPFO is a statutory body of the Indian Government under Labour and Employment Ministry

All About UAN or Universal Account Number of EPF

UAN is Universal Account Number. The UAN is a 12-digit  number allotted to the employee who is contributing to Employee Provident Fund or EPF.  UAN number is a big step towards shifting the EPF services to online platform and making it more user-friendly.  Please note that the universal account number remains same through the lifetime of an employee. It does not change with the change in jobs. In this page you will get all information about UAN.

All About UAN

Advantages of UAN

Once you have the UAN number and you register it then you can check many details. Benefit Of Registration of UAN  at UAN Member e-Sewa Portal are as follows:

  • You can download the updated EPF passbook. The passbook will tell you the EPF balance broken into Employee Contribution(EE) and Employer Contribution (ER). Also deduction fro Employee Pension Scheme (EPS). Sample passbook is shown below.
  • You can link your previous PF accounts (before Oct 2014) which are not linked to UAN number.
  • You can upload KYC data.
  • You can change mobile no and email address.
  • In Future You can apply for the online PF transfer through UAN itself. Currently, it’s a separate process done through Online Transfer Claim Portal (OTCP). Going forward plans are that when employee changes job and new Member ID is allotted then transfer of old Member Ids would be done automatically.

Allotment of UAN for a new employee

Submitting Home Loan Interest Proof to the Employer with PAN of Lender

In India, personal income tax is based on the concept of “pay as you earn” wherein there is a mandatory deduction of tax at source(TDS)  from the salary paid to each employee. From Jan employer asks for tax saving Proofs. This article talks about the steps to claim tax benefits on Home Loan Interest, Why Submit the Tax Saving Proofs to your Employer on time, PAN number of the bank or institution from where you have taken loan, Provisional home loan interest certificate.

Steps to claim Interest on Home Loan Deduction

  • An employee can claim home loan interest deduction under section 24C by submitting details to his employer in Form 12BB with proofs such as Ownership details of the property, provisional home loan certificate. you submit your interest on home loan deduction documents to your employer, your employer will adjust your TDS deductions accordingly.
  • If you are a Freelancer or you are self-employed – you don’t need to submit these documents anywhere. You use it to estimate your Advance Tax liability for each quarter. You can claim it while filing ITR.
  • An employee can also claim the tax deduction on the principal amount under section 80C by submitting details to the employer in Form 12BB along with other tax savings proofs such as PPF, Life Insurance Premium.
  • Form 16 will show the tax saving proofs considered by the employer.
  • Show Home loan interest as income from House Property while filing ITR. You are not required to submit these documents to the Income Tax Department.

If you don’t submit the proof to your employer, you can claim the Principal and Interest on Home loan while filing ITR and ask for the refund. But that’s delaying the process by at least 6 months. We recommend you to provide the tax saving proofs on time to your employer as stitch in time saves nine and taxes too1

To claim tax exemption on home loan one is required to quote PAN number of the bank or institution from where the loan was taken. The loan providers have now modified their home loan payment certificate which quotes their PAN Number. PAN numbers of some of the popular home loan providers are given below. The entire list banks and NBFCs with their PAN Numbers are here.

  • SBI PAN Number – AAACS8577K
  • HDFC PAN Number – AAACH0997E
  • ICICI Bank PAN – AAACI1195H

Why Submit the Tax Saving Proofs to your Employer

In India, personal income tax is based on the concept of “pay as you earn” wherein there is a mandatory deduction of tax at source(TDS) from the salary paid to each employee. The taxes deducted at source (TDS) are covered under Section 192 of the Income-tax Act, 1961 making it the obligation of the employer to withhold taxes at the time of payment of salaries.

The employer asks for the declaration of tax saving proofs in the beginning of financial year i.e Apr. Since the beginning of the financial year, from 1 Apr, your employer would have been computing taxes on your salary based on the proposed investment declaration submitted by you earlier and deducting Tax.

Usually, from Jan employer asks you to furnish the documentary evidence of having actually made the investments as per the investment declaration made earlier.  Once the actual proof is submitted, the accounts department will compute the taxes based on the proofs of the actual investments made by you.You can make tax-saving investments different from those declared by you earlier but the deduction from taxable income will be given only on the basis of the actuals submitted and not on the basis of the proposed declaration made earlier.  This will also enable the employee to finalize tax adjustments, if any, in the balance months of the current financial year (2016-17).If taxes have been deducted in excess or less, accordingly, they will get deducted in the last 3 months of the FY. The documents need not be attached or sent to Income-tax Department at the time of tax filing. Instead, it’s the employer who has to receive them from employees and deduct tax accordingly. Our article Income Tax Proof Submission to the Employer discusses tax saving investment/expenditure proofs in detail.

Do not wait till March for saving tax as one could see a huge tax burden in that month and less of take-home pay.

Income Tax Benefits on a Home Loan

Income Tax Benefits on a Home Loan for FY 2016-17 are given in table below

Particulars Deduction on Amount Conditions
Section 24

Self-occupied property

Rented property

Interest on home loan
Interest on home loan
Upto Rs.2,00,000


No Limit

Home has been purchased/constructed within 5 years
Section 80C Principal repayment, stamp duty & registration charges Upto Rs.1,50,000 Deduction is allowed in the year in which actual principal payment is paid
Section 80EE Interest on home loan Upto Rs.50,000 ( in addition to Rs 2lakhs) Loan must be taken between 1st April 2016 to 31st March 2017

Taxpayer should not own any property

Loan  from a financial institution

Value of the house must be less than Rs 50 lakhs

Loan must be for less than Rs 35 lakhs.

Documents to claim Income Tax Benefits on a Home Loan

Following documents need to be submitted for claiming the Income Tax benefits on Home loan in form 12BB. Our article Form 12BB for claiming Income Tax Deductions by Employees explaining Form 12BB in detail. Many employers have their own websites to upload the information.

  • Provisional Interest certificate from Bank/Financial Institution specifying the break-up of interest and the principal amount. The certificate should also have the loan sanction date and PAN number
  • Possession Certificate copy.
  • Sale Deed Copy (In case possession letter in not available)
  • Lease deed copy, in case of let out property
  • In case of Joint Home Loan, self-declaration of the ownership proportion needs to be furnished
  • Form 12C
Form 12BB Claim House Loan Details to Employer

Form 12BB Submit Home Loan Details to Employer

PAN Number of the lender for Home Loan

To claim tax exemption on home loan one is required to quote PAN number of the bank or institution from where they have taken the loan. The loan providers have now modified their home loan payment certificate which quotes their PAN Number. But in case you are not able to find it, here is an alphabetic list of banks or finance institutions with their PAN Numbers.

If you want to check if the PAN Number of the lender is correct, you can do so at Income Tax website for PAN Verification.

PAN number of Banks and Financial Institutions

Bank/Home Loan Providers PAN Number
Allahabad Bank AACCA8464F
Andhra Bank AABCA7375C
Axis Bank Limited AAACU2414K
Bank of Baroda (BoB) AAACB1534F
Bank of India (BoI) AAACB0472C
Bank of Maharashtra (BoM) AACCB0774B
BMW India Financial Services AADCB8986G
Canara Bank AAACC6106G
Canfin Homes Limited AAACC7241A
Central Bank of India AAACC2498P
City Union Bank Limited AAACC1287E
Corporation Bank AAACC7245E
DCB Bank Limited AAACD1461F
Deutsche Bank AAACD1390F
GIC Housing Finance Limited AAACG2755R
HDFC Bank Limited AAACH2702H
ICICI Bank Limited AAACI1195H
IDBI Bank Limited AABCI8842G
Indiabulls Housing Finance Limited AABCI3612A
Indian Bank AAACI1607G
Indian Overseas Bank (IOB) AAACI1223J
Indusind Bank Limited AAACI1314G
Kotak Mahindra Bank Limited AAACK4409J
L&T FinCorp Limited AAACI4598Q
L&T Infrastructure Finance Company AABCL2283L
LIC Housing Finance Limited AAACL1799C
Oriental Bank of Commerce AAACO0191M
PNB Housing Finance Limited AAACP3682N
Power Finance Corporation Limited AAACP1570H
Punjab & Sind Bank AAACP1206G
Punjab National Bank (PNB) AAACP0165G
State Bank of Bikaner and Jaipur (SBJJ) AADCS4750R
State Bank of Hyderabad (SBH) AADCS4009H
State Bank of India (SBI) AAACS8577K
State Bank of Mysore (SBM) AACCS0155P
State Bank of Patiala AACCS0143D
Syndicate Bank AACCS4699E
TATA Motors Finance Limited AACCT4644A
The Karnataka Bank Limited AABCT5589K
The South Indian Bank Limited AABCT0022F
Union Bank of India AAACU0564G
United Bank of India AAACU5624P
Vijaya Bank AAACV4791J
YES Bank Limited

Provisional Home Loan Interest Certificate

The interest certificate from the bank or financial institution, specifying the break-up of interest and the principal amount for a financial year is required. A sample provisional home loan certificate showing break-up is given below.

Actual repayment is one that is the amount paid by the person who has taken the loan, from Start of the financial year(ie Apr) to the time of generating the certificate.

Expected repayment is amount one is expected to pay from the day of generation of the certificate to the Mar 31 i.e end of financial year

Provisional home loan interest certificate showing break up.

Provisional home loan certificate showing break up.

Most of the banks now provide the provisional home loan certificate through net banking. For example, if one has taken home loan from SBI one can view/download Interest Certificate (Provisional) of their home loan account(s) by following the steps given below. The certificate can be viewed online, printed or downloaded in pdf.

  • Logging to Internet Banking site with your credentials
  • Select Enquires Tab
  • Select the “Home Loan Int.Cert (Prov)” link under “Enquiries” tab. Then select the account for which you require a Home Loan Interest Certificate.

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India’s richest 1% or 57 billionaires, led by Mukesh Ambani, own $216 billion or 58% of the country’s wealth. Worldwide, 8 billionaires hold about 50% of global wealth, according to a study by non profit rights group Oxfam. This article talks about Oxfam report on Inequality in World, 8 Wealthiest Men in the World, and Richest People in India and how wealth is distributed in India.

Oxfam Report on InEquality in World and Davos

Just eight men own the same amount of wealth as the poorest half of the world, estimates a new paper from Oxfam, an international non-government organisation. Oxfam has an annual tradition of releasing a report to coincide with the World Economic Forum in Davos.  The charity’s report suggests the wealth gap is wider than ever, with new data for China and India indicating that the poorest half of the world owns less than previously estimated.  Oxfam bases its calculations on data from Forbes.


Davos is a small town in the Swiss Alps and  is home of one of Switzerland’s biggest ski resorts. Every January Davos hosts the World Economic Forum (WEF) – a gathering of presidents, prime ministers, business leaders, economists, and celebrities.The conference’s official calendar is full of panel discussions and speeches, while off-schedule there will also be private meetings between politicians, business leader,s and senior bankers to discuss the key economic issues of the day.

More than 2,500 people will attend this year’s WEF from 90 different countries. The theme of 2017’s meeting is responsive and responsible leadership. This has been broken down into five key areas: strengthening global collaboration, restoring economic growth, reforming capitalism, addressing the identity crisis which has caused the current populist revolution and preparing for the Fourth Industrial Revolution. Donald Trump’s imminent presidency, Brexit and China are set to be key topics of discussion

Oxfam report on Inequality in World

The analysis, part of a series of papers written on humanitarian policy issues, attributes this “unsustainable and unjust“ global situation to the “design of our economies“ and calls for ending “excessive“ rewards for those at the top. Oxfammakes a strong case for tackling growing inequality, which, it says, will lead to social unrest and instability.

Wealth of world billionaires

Wealth of world billionaires

Oxfam, which described the gap as “obscene”. In 2010, by comparison, it took the combined assets of the 43 richest people to equal the wealth of the poorest 50 percent, according to the latest calculations. Oxfam called in its report for a crackdown on tax dodging and a shift away from “super-charged” shareholder capitalism that pays out disproportionately to the rich.

While many workers struggle with stagnating incomes, the wealth of the super-rich has increased by an average of 11 percent a year since 2009. It‟s time to build a human economy that benefits everyone, not just the privileged few

Inequality has moved up the agenda in recent years, with the head of the International Monetary Fund and the Pope among those warning of its corrosive effects, while resentment of elites has helped fuel an upsurge in populist politics.

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