Fixed Deposit Holder: Any person can make a fixed deposit in the bank, the duration of which ranges from 7 days to 10 years. Some important things related to this …
new Delhi. In all types of Savings Schemes, Fixed Deposits are the most preferred investment option of the people. People of all ages like this method of saving. The biggest reason for this is that it is safer and less risky than other schemes. It can also be invested for short to long term. Today we are going to give you a lot of information including FD related rules, taxes, keeping in mind that you can easily take better advantage of this savings scheme… There are
Two types of FDs,
usually FDs are of two types. The first is cumulative FD and the second is non-cumulative FD. There is interest on quarterly and annual basis. However, you can also avail interest at regular interval.
>> Fixed deposits are considered the safest investment option.
>> There is no risk on the principal money deposited in it. In addition, you can also get returns in a fixed period.
>> The principal money invested in it is safe because market fluctuations have no direct effect on FD.
>> Under this scheme, investors can avail interest on monthly basis.
>> Generally, the rate of interest on FD is high. It gives the highest returns for senior citizens.
>> One has to invest only once in any FD. If the investor has to make more deposits after this, then they will have to open a separate FD account.
>>FD has a maturity period, you have to deposit money for this year. But the advantage is that you can withdraw money even before the time of need. However, if you break the FD before maturity, you lose interest, you have to pay some penalty on it. Which is different in different banks.
what FD tax deduction rules
Tax is deducted from 0 to 30 percent on fixed deposits. It is deducted based on the income tax slab of the investor. If you earn more than Rs 10,000 in a year, you will have to pay 10 percent tax on your FD. However, for this, you have to submit a copy of your PAN card. If PAN card is not deposited, then 20% TDS is deducted on it. If the investor wants to avoid tax deduction, for this he should submit Form 15A to his bank. This applies to those who do not fall under any income tax slab. Senior citizens should submit Form 15H to avoid tax deduction.
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