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What you all need to know related to fixed deposit rates?

by Menas Ros Savings account

As an investment instrument mainly offered by banks and NBFCs (non-banking financial companies), Fixed Deposit is also a great way to grow your savings with utmost safety. It is always one of the most preferred avenues that mainly enables you to deposit a lump sum amount with your financier, and choose a tenure as per your convenience. So, on completion of the pre-decided tenure, your deposit also starts earning an interest, throughout the chosen duration, as per the interest rate at which you locked in your deposit.

Once your investment amount has always been locked in at a specific interest rate, it mainly remains unaffected by further changes in interest rates or market fluctuations. Thus, you can also get guaranteed returns on your deposit, and you can always choose to get your interest on a periodic basis, or at maturity. Usually, the defining criteria for FD is always that the money cannot be withdrawn before maturity, but you may also withdraw them after paying a penalty.

 

Features of Fixed Deposit

 

  • ·    The returns on your deposit are assured and remain unaffected by market fluctuations
  • ·     FD interest rates offered by NBFCs are higher than FD rates offered by banks
  • ·      Fixed Deposit can be easily renewed, and you can also reap additional rate benefits on renewing your deposits
  • ·     Tax is deducted at source, from interest on Fixed Deposit as applicable, as per the Income Tax Act, 1961.

 

Benefits of Fixed Deposit

 

  • ·         Fixed Deposit is one of the safest and easiest mode of investment instruments, which offers highest stability for your money
  • ·         Returns which you get on Fixed Deposit are very assured, and in this no risk of loss of principal
  • ·         You can also opt for the various periodic interest payouts, in order to help for manage your monthly expenses
  • ·         There market fluctuations on your Fixed Deposit has no effect, which ensures a greater safety of your investment capital

 

 Taxability on Fixed Deposit


The interest earned from Fixed Deposit rates are taxable. The tax mainly deducted at source on FD can range from 0% to 30%, also depending on income tax bracket of the investor. Financiers deduct 7.5% TDS if interest earned is more than Rs. 10,000 in a year, only if your also PAN details are always available with them. However, in case your PAN details are not provided to your financial institution, 20% TDS will be deducted.

If your total income is below the minimum tax slab of 10%, you can claim a refund of the deducted TDS. You can always avoid the deduction by submitting Form 15G to your financial institution, and even submitting Form 15H if you’re also a senior citizen. So, if you fall in the higher tax bracket (20% or 30%), you would always have to pay extra tax over and above the TDS deducted by your NBFC or bank.

 

Why invest in Bajaj Finance Fixed Deposit?


You can also opt for a Fixed Deposit by Bajaj Finance, which mainly enables you to earn greater returns with a higher interest rate. You can always leverage benefits of flexible tenure, easy online application processes, and start investing with just Rs. 25,000. With HNB Fixed Deposit Interest Rates, you get high security because of FAAA rating from CRISIL and MAAA rating from ICRA. This mainly helps you earn assured returns, which can also be converted into periodic interest payouts, customised as per your needs.


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About Menas Ros Junior   Savings account

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Joined APSense since, September 16th, 2020, From Colombo, Sri Lanka.

Created on Dec 18th 2020 00:44. Viewed 127 times.

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