HDFC Bank has cut the interest rates on Fixed Deposit (FD). Now, on making FD in HDFC Bank, general citizens will get interest ranging from 3% to 7.05%. At the same time, senior citizens will get interest ranging from 3.50% to 7.55%. This change has been made in the interest rates of FDs less than Rs 3 crore. SBI and BOI also cut FD interest rates
Earlier recently, State Bank of India (SBI) and Bank of India (BOI) have cut the interest on Fixed Deposit (FD). Now 6.70% interest is being given on 1 year FD in SBI. Now in Bank of India (BOI), general citizens will get 7.05% interest on 1 year FD. After the RBI cut the repo rate, now banks are also cutting FD interest rates. Keep these 3 things in mind while making 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 can 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. This will allow you to break the FD in between and arrange for money if you need money in between. 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. In simple language, understand it like this, you can reduce up to 1.5 lakhs from your total taxable income through section 80C.
