Punjab National Bank (PNB) and Bank of Baroda (BoB) have recently increased interest rates on fixed deposits (FDs). In such a situation, if you are planning to make FD deposits in these or any other banks, you must also, before that, know about the Post Office National Term Deposit Scheme.
Here, apart from the Post Office National Term Deposit Scheme, we also tell you how much interest the major banks in the country are offering on FD.
Up to 7.5% interest is available on National Term Savings Deposit Account
It’s a type of FD. You can get fixed returns by investing in it for a specific period. The term deposit account offers interest rates ranging from 6.9% to 7.5% for a period of 1 to 5 years. A minimum investment of Rs 1,000 must be made there. There is no limit to the maximum investment. Click here for more information about this program
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.