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. National Savings Time Deposit Account is offering up to 7.5% interest. Keep these 3 things in mind while getting FD 1. Choosing the right tenure is important 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. Breaking the FD before it matures will attract a penalty of up to 1%. This may reduce the total interest earned on the deposit. 2. Do not invest all the money in a single FD
If you are planning to invest Rs 10 lakh in FD in a single bank, then instead invest in 8 FDs of Rs 1 lakh and 4 FDs of Rs 50 thousand in more than one bank. With this, if you need money in between, you can arrange money by breaking the FD in between as per your need. Your remaining FDs will remain safe. 3. Tax exemption is available on 5-year FD
5-year FD is called tax savings FD. By investing in it, 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 your total taxable income by up to 1.5 lakh through Section 80C.
