Fixed deposits (FDs) are a popular choice among investors looking for predictable returns from their savings. Special-tenure FDs can offer competitive interest rates to investors willing to lock in their money for a specific period.
If you are planning to invest ₹10 lakh in a 555-day FD, how much interest can you earn from Bank of Baroda, Canara Bank, Indian Bank and Union Bank of India? Here is a comparison of the annual interest and estimated maturity value at the rates provided.
The annual interest figures below are calculated by applying the stated rate to the ₹10 lakh investment. The maturity values are illustrative estimates, assuming quarterly compounding for 555 days, before tax. Actual maturity amounts may vary depending on each bank’s applicable FD terms, compounding method and payout option.
Bank of Baroda 555-day FD: ₹10 lakh investment
Bank of Baroda offers a 6.75% annual interest rate on its 555-day special fixed deposit under the BoB Golden Goal Deposit Scheme, based on the rate provided.
For an investment of ₹10 lakh:
- Investment: ₹10,00,000
- Interest rate: 6.75%
- Annual interest: ₹67,500
- Estimated 555-day maturity: ₹11,07,141
At the stated rate, the annual interest works out to ₹67,500. Assuming quarterly compounding, the ₹10 lakh investment could grow to around ₹11.07 lakh after 555 days.
Canara Bank 555-day FD: ₹10 lakh investment
Canara Bank offers a 6.75% annual interest rate on its 555-day fixed deposit, based on the rate provided.
For an investment of ₹10 lakh:
- Investment: ₹10,00,000
- Interest rate: 6.75%
- Annual interest: ₹67,500
- Estimated 555-day maturity: ₹11,07,141
At this rate, the annual interest would be ₹67,500. Under the quarterly-compounding assumption, the estimated maturity value would be around ₹11.07 lakh, matching Bank of Baroda‘s estimate.
Indian Bank 555-day FD: ₹10 lakh investment
Indian Bank offers a 6.80% annual interest rate on its 555-day fixed deposit, based on the rate provided.
For an investment of ₹10 lakh:
- Investment: ₹10,00,000
- Interest rate: 6.80%
- Annual interest: ₹68,000
- Estimated 555-day maturity: ₹11,07,969
At the stated rate, the annual interest would be ₹68,000. Assuming quarterly compounding, the estimated maturity value would be around ₹11.08 lakh after 555 days.
Union Bank of India 555-day FD: ₹10 lakh investment
Union Bank of India offers a 6.55% annual interest rate on its 555-day fixed deposit, based on the rate provided.
For an investment of ₹10 lakh:
- Investment: ₹10,00,000
- Interest rate: 6.55%
- Annual interest: ₹65,500
- Estimated 555-day maturity: ₹11,03,834
At this rate, the annual interest would be ₹65,500. With quarterly compounding, the estimated maturity value works out to around ₹11.04 lakh.
₹10 lakh in a 555-day FD: How much will it become?
If the ₹10 lakh investment is placed in a cumulative FD and the stated rates are assumed to compound quarterly for 555 days, the estimated maturity values are:
- Indian Bank – 6.80%: ₹11,07,969
- Bank of Baroda – 6.75%: ₹11,07,141
- Canara Bank – 6.75%: ₹11,07,141
- Union Bank of India – 6.55%: ₹11,03,834
The difference between the highest and lowest estimated maturity values is ₹4,135. These amounts are illustrative estimates and should be checked against the banks’ official FD calculators before investing.
Bank of Baroda, Canara, Indian Bank or Union Bank – which gives better returns?
Based on the rates provided, Indian Bank offers the highest interest rate among the four banks at 6.80% per annum. On a ₹10 lakh investment, this translates into ₹68,000 in annual interest and an estimated maturity value of ₹11,07,969 under the quarterly-compounding assumption.
Bank of Baroda and Canara Bank follow with an interest rate of 6.75% each. A ₹10 lakh investment in either bank would earn ₹67,500 in annual interest and have an estimated maturity value of ₹11,07,141.
Union Bank of India offers an interest rate of 6.55%. At this rate, the annual interest on ₹10 lakh would be ₹65,500, with an estimated maturity value of ₹11,03,834.
Therefore, based purely on the rates provided, Indian Bank offers the highest estimated return, while Union Bank of India offers the lowest rate in this comparison. The difference between their estimated maturity values is ₹4,135 over 555 days.
Investors should also compare the FD tenure, interest payout frequency, premature withdrawal rules, deposit insurance coverage and tax implications before investing. FD interest is taxable according to applicable income-tax rules.
The rates mentioned above are the figures provided for this comparison. Bank FD rates can change, so investors should confirm the applicable interest rate and maturity value with the respective bank before investing.
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₹10,00,000 in 555-day FD: Bank of Baroda, Canara, Indian Bank or Union Bank – which gives better returns?