Canara and IndusInd Bank have recently changed the interest rates of fixed deposits (FD). Earlier, Union Bank of India and Yes Bank had also increased the interest rates on FD. In such a situation, if you are planning to get FD these days, then you must know about the new interest rates of these banks before that.
Here we are telling you how much interest the major banks of the country including these 4 banks are giving to the common citizens on FD of less than Rs 3 crore. So that you can invest at the right place as per your convenience.
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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