Punjab National Bank (PNB) and Bank of Baroda (BoB) have recently increased interest rates on fixed deposits (FD). In such a situation, if you are thinking of opening an FD in a bank, before that you should also know about National Time Deposit Scheme of Post Office.
Here, apart from Post Office's National Time Deposit Scheme, we are also telling you how much interest major banks in the country are offering on FDs.
National Savings Time Deposit Account offers up to 7.5% interest
- 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 1000 rupees has to be made in this. There is no limit on maximum investment.
Keep these 3 things in mind while doing FD
1. Choose the right time period Before investing in FD it is important to think about its time period. Because if the investors break the FD before maturity then they have to pay penalty. If the FD is broken before maturity, a penalty of up to 1% has to be paid. This can reduce the total interest on the deposit.
2. Do not invest all money in one FD If you are thinking of investing 10 lakh rupees FD in any one bank, instead invest 8 FDs of one lakh rupees and 4 FDs of 50 thousand rupees in more than one bank. Also, if you need money in between, you can manage the money by splitting the FD as per your requirement. Your remaining FD will be safe.
3. Tax exemption available on 5 year FD A 5 year FD is called a Tax Savings FD. By investing in this, you can deduct from your total income under Section 80C of the Income Tax Act Rs. 1.5 lakh can be claimed as a deduction. Understand it in simple language, you can through section 80C out of your total taxable income of Rs. Can reduce up to 1.5 lakhs.
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