Fixed Deposit is a safe and better option for investment, but before doing FD, we are going to tell you some such things, which can prove beneficial for you to know.
New Delhi. Fixed Deposit. If you are also looking for a safe investment option for your corpus, then you can consider Fixed Deposit. This is a good and safe way to increase deposit capital. But before doing FD, we are going to tell you some such things, knowing which can prove beneficial for you.
Make FD in the name of senior citizens
Explain that banks give more interest to senior citizens on making FD, so if there is an elderly person in your house, then you can get FD done in his name. Along with this, before getting an FD, think carefully about its duration, many times we take a decision in haste. After this, we withdraw the money even before the expiry of the term of the FD. In such a situation, we may have to pay some fine as well.
This is how you will get discount in income
Along with this, if you invest in tax saving FDs for up to five years, then you can also get a discount in income tax. There is no tax to be paid on interest also. Explain that if the interest earned on FD in any financial year exceeds Rs 10,000, then TDS is deducted at the rate of 10 percent.
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Along with this, it is very important to know before making an FD that never make a big amount as a fixed deposit. For example, if you want to make an FD of Rs 40 lakh, then deposit this money in four or more parts in different banks. With this, if you need some money in future, then you can withdraw money from one or two FDs. By doing this your other FDs will be safe and interest will continue to accrue on them.