In this world of technology, money occupies quite a considerable size. It is known to all that earning money is not everything, but the art lies in securely manipulating and saving it for future use. Now one question must arise where to deposit a part of our income securely so that it may come in handy in future, right? For this there are different savings schemes. But in this article I chiefly stressed on Fixed Deposit Accounts, a better and low-risky scheme for savings. But before I start to talk about it, let's have a bird's eye on what is Fixed Deposit (FD) ?
WHAT IS FIXED DEPOSIT?
The most popular forms of Term deposit are Fixed Deposits. An FD is a financial instrument given by banks or NBFCs which provides investors with high interest rates than a savings account, until the given maturity date. It is known as a term depositor time deposit in Canada, Australia, New Zealand and the US and as a bond in UK and India. They are quite save investments.
Main Features of Fixed Deposit :--
• Low-risk and one-time investment.
• Fixed Deposit encourages saving habits for a longer or shorter period of time.
• It enables the depositor to earn a high rate of interest on the lump sum invested.
• The depositor can get loan facility.
• The banks can lend such funds for short term loans to businessmen.
• On maturity the amount can be used to make purchase.
• Fixed deposits give fixed and stable return after a certain tenure.
• A fixed deposit is highly liquid. You can turn your fixed deposit amount into liquidity if needed prematurely. For this, you need to surrender your FD certificate at the time of closing your account . Your bank may also charge a penalty if you close your FD prematurely.
• Your FD gets insured by DICGC (Department of Insurance and Credit Guarantee Corporation) for a minimum amount of ₹ 1 lac per person.
• The period of Fixed Deposit ranges from 7 days to 10 years.
• A fixed deposit can be opened individually or jointly.
• Lastly, investors can claim a minimum of ₹ 1.5 lac as tax-deduction through tax-saving fixed deposits as per Section 80C of the Income Tax Act, 1961.
I think these features are enough to encourage an individual for investing money via an FD.
Now let's check out what is Bank Fixed Deposit and its interest rates.
BANK FIXED DEPOSITS :--
A conventional fixed deposit scheme is an excellent option to preserve a part of your savings. For this many a people choose banks. However, the rate of interest do vary from bank to bank when it comes to an FD.
(a) FD Interest rates in India less than 1 year:
(b) FD Interest rates in India :
(c) FD Interest rates in India for senior citizens:
If you are done with all written above now here I am going to talking about post Office Fixed Deposit (POFD). Well, it is also a good alternative for those investors who live in rural areas and for those who want a sizeable and voluminous return from their lump sum. Let's check out.
POST OFFICE FIXED DEPOSIT :--
Post Office Fixed Deposit (POFD) better known as 'Post Office Time Deposit' is also a convenient and lucrative investment platform for the rural residents compared to metro cities. Through this fixed deposit scheme offered by Indian Postal Services, an individual can earn a guaranteed return from the lump sum deposited for a fixed period of time. For over 150 years, the Department of Posts has been the backbone of India's communication structure. It has made life easy by providing Small Savings Schemes and delivering mauls to the people. Remarkably, the Indian post office has 1,55,015 post offices which makes it one of the largest post network in the world.
Features and Benefits for FD in Post Office :--
(1) The POFD or Post Office Time Deposit can be opened for 5 years.
(2) Minimum amount to be deposited at the time of opening an FD with post office is ₹200. There is no upper limit of it.
(3) A minor of 10 years or above can open and manage the account.
(4) Both joint and single account can be opened. Joint account can be opened by two adults.
(5) An individual can change the time deposit account from single to joint and vice versa.
(6) FD schemes are available for a period of 5 years.
(7) The depositor can open a TDA (Time Deposit Account) for a minimum of 1 years.
(8) The investments made under 5 years are eligible for tax benefits and deductions under Section 80C of the Income Tax Act of India, 1961.
(9) An individual can open any number of TDA easily.
(10) The TDA can be transported quite easily if anyone shifts his address to another location.
(11) And finally, on maturity, the account is automatically renewed for the period it was initially opened.
Let's understand it practically. Have an example: If you invest ₹1 lac for a period of 5 years , the total interest earned will be ₹ 7,800 and the maturity value of the deposit will be ₹ 1,07, 800 . Now let's take a glance at the Time Deposit Account fixed deposit interest rates with effect from 1 January, 2018 :
Check yours maturity amount at https://www.upwardly.in/fixed-deposit-calculator
Conclusion :
However, it is to be noted that the biggest disadvantage of investing money in fixed deposit is that , its returns are low compared to other investment options and if the inflation is on the surge FD investors are the worst hit as the returns from FD may not be sufficient to cover the high expenses due to inflation. Still, many people rely on FDs for better returns including me and my recommendation is that fixed deposits are low risky and purely better platform to invest a lump sum to grow your money into a huge tree. Besides, your investment is exempted from tax-givings under Section 80C of the Income Tax Act of India, 1961 if it is locked under 5 years. Moreover the individual's invested money is also insured by DICGC for a maximum amount of ₹ 1.5 lac per capita. So there is nothing to worry about ! Invest freely, grow your seeds into a full-fledged tree and bask in the joys of future planning.
Good luck.
WHAT IS FIXED DEPOSIT?
The most popular forms of Term deposit are Fixed Deposits. An FD is a financial instrument given by banks or NBFCs which provides investors with high interest rates than a savings account, until the given maturity date. It is known as a term depositor time deposit in Canada, Australia, New Zealand and the US and as a bond in UK and India. They are quite save investments.
Main Features of Fixed Deposit :--
• Low-risk and one-time investment.
• Fixed Deposit encourages saving habits for a longer or shorter period of time.
• It enables the depositor to earn a high rate of interest on the lump sum invested.
• The depositor can get loan facility.
• The banks can lend such funds for short term loans to businessmen.
• On maturity the amount can be used to make purchase.
• Fixed deposits give fixed and stable return after a certain tenure.
• A fixed deposit is highly liquid. You can turn your fixed deposit amount into liquidity if needed prematurely. For this, you need to surrender your FD certificate at the time of closing your account . Your bank may also charge a penalty if you close your FD prematurely.
• Your FD gets insured by DICGC (Department of Insurance and Credit Guarantee Corporation) for a minimum amount of ₹ 1 lac per person.
• The period of Fixed Deposit ranges from 7 days to 10 years.
• A fixed deposit can be opened individually or jointly.
• Lastly, investors can claim a minimum of ₹ 1.5 lac as tax-deduction through tax-saving fixed deposits as per Section 80C of the Income Tax Act, 1961.
I think these features are enough to encourage an individual for investing money via an FD.
Now let's check out what is Bank Fixed Deposit and its interest rates.
BANK FIXED DEPOSITS :--
A conventional fixed deposit scheme is an excellent option to preserve a part of your savings. For this many a people choose banks. However, the rate of interest do vary from bank to bank when it comes to an FD.
(a) FD Interest rates in India less than 1 year:
(b) FD Interest rates in India :
(c) FD Interest rates in India for senior citizens:
If you are done with all written above now here I am going to talking about post Office Fixed Deposit (POFD). Well, it is also a good alternative for those investors who live in rural areas and for those who want a sizeable and voluminous return from their lump sum. Let's check out.
POST OFFICE FIXED DEPOSIT :--
Post Office Fixed Deposit (POFD) better known as 'Post Office Time Deposit' is also a convenient and lucrative investment platform for the rural residents compared to metro cities. Through this fixed deposit scheme offered by Indian Postal Services, an individual can earn a guaranteed return from the lump sum deposited for a fixed period of time. For over 150 years, the Department of Posts has been the backbone of India's communication structure. It has made life easy by providing Small Savings Schemes and delivering mauls to the people. Remarkably, the Indian post office has 1,55,015 post offices which makes it one of the largest post network in the world.
Features and Benefits for FD in Post Office :--
(1) The POFD or Post Office Time Deposit can be opened for 5 years.
(2) Minimum amount to be deposited at the time of opening an FD with post office is ₹200. There is no upper limit of it.
(3) A minor of 10 years or above can open and manage the account.
(4) Both joint and single account can be opened. Joint account can be opened by two adults.
(5) An individual can change the time deposit account from single to joint and vice versa.
(6) FD schemes are available for a period of 5 years.
(7) The depositor can open a TDA (Time Deposit Account) for a minimum of 1 years.
(8) The investments made under 5 years are eligible for tax benefits and deductions under Section 80C of the Income Tax Act of India, 1961.
(9) An individual can open any number of TDA easily.
(10) The TDA can be transported quite easily if anyone shifts his address to another location.
(11) And finally, on maturity, the account is automatically renewed for the period it was initially opened.
Let's understand it practically. Have an example: If you invest ₹1 lac for a period of 5 years , the total interest earned will be ₹ 7,800 and the maturity value of the deposit will be ₹ 1,07, 800 . Now let's take a glance at the Time Deposit Account fixed deposit interest rates with effect from 1 January, 2018 :
Check yours maturity amount at https://www.upwardly.in/fixed-deposit-calculator
Conclusion :
However, it is to be noted that the biggest disadvantage of investing money in fixed deposit is that , its returns are low compared to other investment options and if the inflation is on the surge FD investors are the worst hit as the returns from FD may not be sufficient to cover the high expenses due to inflation. Still, many people rely on FDs for better returns including me and my recommendation is that fixed deposits are low risky and purely better platform to invest a lump sum to grow your money into a huge tree. Besides, your investment is exempted from tax-givings under Section 80C of the Income Tax Act of India, 1961 if it is locked under 5 years. Moreover the individual's invested money is also insured by DICGC for a maximum amount of ₹ 1.5 lac per capita. So there is nothing to worry about ! Invest freely, grow your seeds into a full-fledged tree and bask in the joys of future planning.
Good luck.
4 Comments
Hey, Nice blog. Things may change in our daily life regularly And money is the thing which plays a major and crucial role in our daily lives, I believe sometimes most of the people look up for these loans based on their situations, Most of the people look after these Quick Installment loans for bad credit as both of them are important before going for a loan
ReplyDeleteI am so pleased to read these details. When it comes to your hard earned money, it is important that you make right investment by doing proper research. Have just consulted an expert investment planner and asked him for best income tax saving options. He is conducting all analysis and will then suggest few options as per my future goals.
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ReplyDeleteआज ही Fixed deposit के लिए Apply करे. और 9% तक ब्याज प्राप्त करें.
आज Apply करे
यहां क्लिक करे: https://www.myloancare.in/fixed-deposit/fd-interest-rates/
Download free printable bank deposit slip template word & examples which is ready to use and loaded with editable fields ONLY at Wordexceltemplate.com.
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