Keep 3 things in mind before opening a FD account

FD Account : Canara and IndusInd Bank have recently adjusted the interest rates for Fixed Deposits (FD). Previously, both Union Bank of India and Yes Bank raised the interest rates on fixed deposits. In this scenario, if you intend to invest in FD these days, it’s essential to be aware of the current interest rates offered by these banks beforehand. In this section, we inform you about the interest rates that the major banks in the country, including these four banks, are offering to ordinary citizens on fixed deposits under Rs 3 crore. To ensure you can invest in the appropriate location based on your comfort.

These 3 things keep in mind

Selecting the appropriate tenure is crucial. Prior to investing in an FD, it’s essential to consider its duration. This is due to the fact that if investors pull out before maturity, they will incur a penalty. A fee of up to 1% must be paid if the FD is withdrawn before its maturity. This could decrease the overall interest gained on the deposit.

Avoid placing all your funds in one fixed deposit. If you intend to invest Rs 10 lakh in a single bank’s FD, consider spreading the investment across 8 FDs of Rs 1 lakh and 4 FDs of Rs 50 thousand in multiple banks instead. This will enable you to terminate the FD midway and arrange for funds if you require money during that period. Your leftover FDs will stay protected.

Tax exemption is applicable on 5-year fixed deposits. A 5-year fixed deposit is referred to as a tax-saving fixed deposit. By investing in it, you can get a deduction of Rs 1.5 lakh from your total income as per Section 80C of the Income Tax Act. In straightforward terms, Section 80C allows you to decrease your overall taxable income by a maximum of Rs 1.5 lakh.