Take special care of these things before making fixed deposit, otherwise money will sink
Customers get better interest by investing in FD. But you cannot withdraw your amount from FD before the maturity period.
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Fixed Deposit : If you deposit your money in Fixed Deposit (FD) for a maturity period. Customers get better interest by investing in FD. But you can transfer your amount from FD to maturity period (maturity period) cannot be removed before . But for doing so you will have to pay the penalty fee. Senior citizens get a lot of benefits from investing in fixed deposits. Bank Senior Citizen (senior citizens) offers high interest rates for investment in Fixed Deposits. Here you have to pay a fixed amount for a period.
Government and private banks offer different interest rates on fixed deposits. You can also open a fixed deposit account in the post office. But before investing in Fixed Deposit (FD), you should know the important things related to it. Keeping these things in mind, you can invest in FD more easily. And you can get better return on your investment.
If you want to open an FD account, then for this you will have to go to the nearest bank with the necessary documents. Where fill the form of Fixed Deposit (FD) account and deposit the amount to be invested in Fixed Deposit.
Do not withdraw funds before maturity
Investment in Fixed Deposit is done for a fixed period of time. If you withdraw your amount before the stipulated period, then you may incur losses. If you have invested in Fixed Deposit for 5 years, then you can withdraw only after its maturity. If you still want to withdraw the amount, then wait for at least one year. Because you will be able to get the applicable interest rate only on one year’s deposit.
Tax is applicable on FD interest
Earnings from FD are taxable. If your interest amount increases up to Rs 10,000, then the bank will deduct a tax of 10.3% on the amount received by you. Similarly, if your annual income is more than five lakh rupees, then you will have to pay more tax. But senior citizens who are above 60 years of age get a deduction of up to Rs 50,000 on the income earned in the form of interest on FDs under Section 80TTB of the Income Tax Act. Also, you should mention your FD earnings while filing your tax return.
English News Headline :Keep these things in mind before making a fixed deposit.