Union Bank of India and Yes Bank have recently increased interest rates on fixed deposits (FDs). In such a situation, if you are planning to get FD these days, then you need to know the new interest rates of these banks before that.
Here we tell you how much interest big banks of the country including these 2 banks are giving to common people with FDs less than Rs 3 crore. So that you can invest in the right place as per your convenience.
Keep these 3 things in mind when creating FD
1. It is important to choose the right mandate Before investing in FD, it is important to think about its mandate. Indeed, if investors withdraw before maturity, they will have to pay a penalty. If the FD is broken before maturity, a penalty of up to 1% will have to be paid. This can reduce the total interest earned on the deposit.
2. Don’t invest all the money in one FD If you are planning to invest Rs 10 lakh in FDs in one bank, instead invest in 8 FDs of Rs 1 lakh each and 4 FDs of Rs 50,000 each in more than one bank. With this, if you need money in between, you can arrange the money by breaking the FD halfway as per your requirement. The rest of your FD will remain safe.
3. Tax exemption is available for 5 years FD The 5-year FD is called Tax Savings FD. By investing in this area, 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.