Standard Chartered Bank FD Interest Rate

Term Fixed Deposit

Standard Chartered Bank provides a range of fixed deposit options that cater to both short-term and long-term investments. Apart from services like premature withdrawals and loans against FD, the bank offers competitive interest rates on its fixed deposits. 

Here are the key features of Standard Chartered Bank's Fixed Deposit scheme:

• Flexible tenure options ranging from 7 days to 5 years.
• The minimum amount required to book a term deposit is ₹10,000.
• Depositors can choose between compound interest and simple interest. They can also opt for monthly payout options to suit their monetary requirements.
• An additional 0.5% interest is offered to senior citizens.
• Premature withdrawal is available, but attracts a penalty of 1%.
• Depositors can avail of an overdraft facility against their deposit amount.
• The term deposit gets auto-renewed for the same tenure on the maturity date, ensuring no interest loss.
• Depositors can easily open a bank FD online using Online banking or Mobile banking, or offline by visiting the nearest bank branch.
• In the absence of PAN details, TDS at a higher rate of 20% will be applied on resident term deposits
• No-premat deposits greater than ₹7.5 crores can be booked.

• Period:  The period of the FD with Standard Chartered ranges from 1 week to a maximum of 5 years.  
• Convenient: Open hassle free FD using online banking in few minutes
• DICGC insurance: The amount invested with the Bank is covered by DICGC for the total sum of ₹5 lakhs. 
• Minimum amount: Fixed deposits with Standard Chartered Bank can be opened with a minimum investment of ₹10,000. 
• Preference to senior citizens: Additional 0.5% interest rate for senior citizens on term deposit
• Auto-renewal option: The Standard Chartered Bank offers an auto-renewal option for their FDs. It means at the time of maturity of the FD, it gets renewed automatically. This is helpful for investors as they do not have to take the pressure of renewing their FDs. 
• Nomination facility: Depositors can nominate beneficiaries for their investments made in Standard Chartered Bank FDs. 
• Overdraft facility: You can avail overdraft facility against your term deposit

• Not dynamic: Interest rates on FD are not dynamic. So, it fails to overcome the risk of inflation. 
• Fixed rate: Fixed deposits offer a fixed rate on the investment. Hence, no benefit can be availed for higher returns in cases of an increase in market interest rates.

The following are eligible to invest in Standard Chartered Bank fixed deposits:

• Individuals, 
• Proprietors, 
• Partnership,
• Limited Companies,
• Societies,
• Clubs,
• Associations and
• HUFs

The following documents are required to invest in Standard Chartered Bank fixed deposits:  

Documents accepted as ID and Address Proof

• Passport
• Driving licence
• Aadhaar card
• Voter’s Identity Card issued by the Election Commission of India
• Job card issued by NREGA duly signed by an officer of the State Government
• Letter issued by the National Population Register containing details of name and address

Fixed deposit accounts can be opened in both online and offline methods: 

Online Method: 

Step 1: Login to Online Banking

Step 2: Select “Open Term Deposit” from the left hand side menu

Step 3: Follow the online instructions and apply for a term deposit.

Offline Method: 

Step 1: Visit the bank branch.

Step 2: Take the FD application form. 

Step 3: Fill in the required details and submit the necessary documents. 

Step 4: Submit the form to the branch. 

Standard Chartered Bank permits the early withdrawal of fixed deposits but imposes a penalty on the interest earned. The penalty charged for premature withdrawal is 1% of the interest income.

As per the Income Tax Act of India of 1961, taxpayers can seek deductions under Section 80C if they invest in FDs.

In a given financial year, a taxpayer can avail tax deduction to a maximum of ₹1.5 lakhs from their gross taxable income, provided the following conditions are fulfilled:

• Taxpayers can invest in FD either through public or private sector banks. 
• Individuals and HUFs can avail tax deductions by investing in tax savings FDs. 
• Bank's five year tax saving FD offers exemptions under Section 80C. 
• Investors cannot get loans against these FDs. 
• In case of joint holders, only the first holder can get tax benefits. 

At the time of filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs. 

Tax Deducted at Source (TDS)

• TDS will be deducted on the interest accrued on the FDs if the interest is more than ₹40,000 (₹50,000 for senior citizens) in a given financial year. 
• For Resident customers, If you have submitted your PAN card details then the deduction will be at 10% per year on the interest. Without a PAN card, the bank will deduct 20% TDS per year.