What happens if the prevalent interest rate goes up?

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• What happens if the prevalent interest rates come down?

  There will be absolutely no change as the issuer is obliged to pay the contracted rate till its maturity as per the current rules.

• Is there an extra interest rate for senior citizens?

  Yes, senior citizens get an additional interest rate of 0.25% per annum.

• What is the rate of interest chargeable for loans?

  FD investment amount carrying interest @ 2% per annum (at half-yearly rest) above the FD interest rate on a cumulative basis.

• What are the modes by which the interest is paid?

  The interest is directly credited to the investor’s bank account via ECS.

• When is Income Tax deducted at source from interest?

  If the estimated annual interest paid/credited or likely to be credited/paid on the deposit/s exceeds or is likely to exceed Rs.5000/- during the financial year, it is obligatory on the part of the deductor of tax to deduct Income Tax at source. ...