Bank of Baroda has launched a new deposit scheme named “Bob Utsav Deposit Scheme”. Under this scheme, after 400 days of FD, 7.30% interest will be given to general citizens, 7.80% to senior citizens and 7.90% interest to super senior citizens.
SBI launches ‘Amrit Vrishti’ deposit scheme
The State Bank of India (SBI) has also launched a new deposit scheme named ‘Amrit Vrishti’. Under this scheme, an annual interest of 7.25% will be given on creation of FDs for 444 days. While senior citizens will benefit from an interest rate of 7.75% per annum.
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.