Punjab National Bank (PNB) and Bank of Baroda (BoB) have recently increased the interest rates on fixed deposits (FD). In such a situation, if you are planning to get FD in these banks or any other bank, then before that you should also know about the National Time Deposit Scheme of the Post Office.
Here, apart from the National Time Deposit Scheme of the Post Office, we are also telling you how much interest the major banks of the country are offering on FD.
Up to 7.5% interest is available in National Savings Time Deposit Account
- This is a type of FD. By investing in it for a fixed period, you can get fixed returns.
- Time deposit accounts offer interest rates ranging from 6.9% to 7.5% for tenures ranging from 1 to 5 years.
- A minimum investment of Rs 1000 has to be made in this. There is no limit on maximum investment. Click here for more information related to this scheme
Keep these 3 things in mind while getting FD
1. It is important to choose the right tenure Before investing in FD, it is important to think about its tenure. This is because if investors withdraw before maturity, they will have to pay a penalty. If the FD is broken before it matures, a penalty of up to 1% will have to be paid. This may reduce the total interest earned on the deposit.
2. Do not invest all the money in one FD If you are planning to invest Rs 10 lakh in FD in any one bank, then instead invest in 8 FDs of Rs 1 lakh each and 4 FDs of Rs 50 thousand each in more than one bank. With this, if you need money in between, you can arrange for the money by breaking the FD midway as per your need. The rest of your FD will remain safe.
3. Tax exemption is available on 5 year FD 5 year FD is called Tax Savings FD. By investing in this, you can claim a deduction of Rs 1.5 lakh from your total income under Section 80C of the Income Tax Act. Understand it in simple language, you can reduce up to Rs 1.5 lakh from your total taxable income through Section 80C.
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