Union Bank of India has cut the interest rate on fixed deposits (FD). After this change, ordinary citizens will get annual interest of 3.50% to 7.15% on FD in the bank. Interest rates have been changed on FDs of less than 3 crores. After the RBI cut the repo rate, now banks are also cutting the interest rates of FD. SBI also cut interest rates
Earlier recently, State Bank of India (SBI) has cut the interest rates of fixed deposits (FD) by 0.20%. Now 6.70% interest is being given on 1 year FD in SBI. Many banks including Canara Bank and Kotak Mahindra Bank have also cut interest rates on FD. Keep these 3 things in mind while making FD 1. It is important to choose the right tenure
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. If you break the FD before it matures, you will have to pay 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. With this, if you need money in between, you can arrange for 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 FDs
5-year FDs are called tax savings FDs. By investing in this, 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 up to Rs 1.5 lakh from your total taxable income through section 80C.
