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The Bank of India reserve, that is to say, RBI reduced the repo rate by 0.25%. This can make loans cheap in the coming days, but interest rates for fixed deposits may decrease. If you plan to do FD, it may be the right time.
Keep 3 things in mind while doing FD
It is necessary to choose the good mandate: it is necessary to think of its mandate (duration) before investing in FD. Indeed, if investors withdraw before the deadline, they feel a penalty. Before the mature FD, he will have to receive a penalty up to 1% if he breaks.
Do not put full money in the same FD: if you plan to invest 10 Lakh rupees in FD in a bank, then invest instead in 8 FD of 1 Lakh Rupes and 4 FD of 50,000 rupees. With this, you can break an FD if you need money in the middle. The rest of the FD will be safe.
The tax exemption is available over 5 years FD: 5 years -OLD FD is called FD tax savings. By investing in this, you can claim a reduction in RS 1.5 Lakh of your total income under article 80C of the income tax law. However, these advantages are only available in the old tax regime.
Three advantages of the FD:
1. …