Fixed Deposit interest rates have increased but many depositors will fail to beat FY24 inflation!
Even as Fixed Deposit interest rates for various tenors have gone up this year, post-tax returns for many depositors are still below the expected inflation number for FY 2023-24, a calculation done by FundsIndia in its monthly Wealth Conversations Report (September 2023) shows.
The inflation rate expected for FY 2023-24 is 5.4%. However, post-tax returns of fixed deposits of various tenors in four top banks work out to be lower than the inflation rate for depositors in the 30% tax bracket.
The calculation shows how the post-tax returns of the four banks are below inflation across different tenors for individuals in the 30% tax bracket. Let’s have a look:
HDFC Bank: The pre-tax FD return is 4.5% but post-tax it is only 3.14%.
ICICI Bank: The pre-tax FD return is 4.75% but post-tax it is only 3.31%.
SBI: The pre-tax FD return is 5.25% but post-tax it is only 3.66%.
PNB: The pre-tax FD return is 5.5% but post-tax it is only 3.83%.
Also Read: Canara Bank, Post Office, ICICI, BoB, Axis, HDFC Bank to SBI: 5-year Fixed Deposit rates compared
HDFC Bank: The pre-tax FD return is 6.6% but post-tax it is only 4.62%.
ICICI Bank: The pre-tax FD return is 6.7% but post-tax it is only 4.69%.
SBI: The pre-tax FD return is 6.8% but post-tax it is only 4.76%.
PNB: The pre-tax FD return is 6.75% but post-tax it is only 4.76%.
HDFC Bank: The pre-tax FD return is 7% but post-tax it is only 4.95%.
ICIC Bank: The pre-tax FD return is 7.1% but post-tax it is only 5.02%.
SBI: The pre-tax FD return is 7% but post-tax it is only 4.95%.
PNB: The pre-tax FD return is 6.8% but post-tax it is only 4.81%.
HDFC Bank: The pre-tax FD return is 7% but post-tax it is only 5%.
ICICI Bank: The pre-tax FD return is 7% but post-tax it is only 5%.
SBI: The
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