For the decade FD been the safest mode to transport your excess fund. These days we have various investment instrument but still we have some of our fraction excess money deposited in this fund.
The fact that FD rates are slipping for the couple of years now, there are some banks that are offering better rates for various period.
Hope this post will give you the brief info.
I had written down the various rates offered by banks for various period
 |
| (Interest rate % compounded Quarterly) Let discuss about it's Tenure, min-max amount, Interest payment, taxation, premature withdrawls, Loan facility, Nomination facility.
The minimum and maximum tenure offered for which an FD can be placed varies from one bank to another. Usually, one can invest in FD for minimum of 7 days and for maximum of 10 years.
The minimum amount needed to open a fixed deposit account varies from bank to bank. However, there is no limit on the maximum amount which one can invest.
The interest received on FD is fully taxable in the hands of investor. TDS will be deducted by the bank if the interest payment in a single financial exceeds Rs 10,000 as per current tax laws. To avoid TDS, one can submit Form 15G or Form 15H.
One can redeem his/her FD before the maturity date. Bank charges penalty on premature withdrawls. The penalty amount varies from one bank to another. Sometimes, banks offer FDs without permature withdrawal facility as well as FD's without penalty on premature withdrawal.
One can use FD as a collateral to obtain a loan. The maximum loan sanctioned is usually a certain percentage of the principal deposit. This percentage may vary from bank to bank.
Nomination facility for FD is also available. |
Comments
Post a Comment