Best Ways To Increase Returns On Fixed Deposits Tamil News: Here are some ways to increase your income from fixed deposits.
Fixed Deposits Tamil News: If you want to invest in fixed deposits, we would like to inform you that interest rates are very low at this time. If you get about 6% income, consider yourself very lucky.
Many investors believe that interest rates in the economy will gradually increase. Here are some ways to maximize your returns on fixed deposits.
High credit – specific interest rate
Post office plans tend to consolidate interest rates after one year. At the same time banks add to them every quarter. That means your income or credit will be higher. Let us illustrate this with an example.
Suppose you invest Rs.1,000 per year, for which you earn 10% interest. What the banks will do after the first three months is to add the Rs.25 you earned and calculate the interest at Rs.1,025 for the next quarter.
So, your credit will be higher as the 10% calculated Interseat will be Rs.1,025 in the next quarter. However, this does not happen in post office programs. The interest earned there accrues only after the end of the year. This reduces credit.
Don’t just trust the bank’s fixed deposit amount
You should not rely solely on the bank’s fixed deposit. Rather, it should be beyond bank deposits. In fact, the company’s fixed deposit is also a good option. For example, Bajaj Fund offers a fixed interest rate of 6.75% per annum, but SBI offers you a maximum of 5.5% interest, which is a 5-year grace period, so look for a variety of options, including a post office deposit.
Other options for investment include non-performing loans and debt mutual fund schemes.
Look for other investment-dependent options that offer tax breaks
There are two types of tax benefits you receive. The first is tax breaks under Sec80C of the Income Tax Act. The amount invested there is deducted from the total income up to a maximum of Rs 1.5 lakh. Tools like PPF, Bank Tax Savings Fixed Deposit Tools, NSC give you this benefit.
Another is that the interest earned on the instruments is tax deductible in the hands of investors. So, you do not have to pay tax on it. Tools such as PPF, ULIPs and tax-free bonds are some of the tools that fall under this category.
Apply online
Some fixed deposits from non-bank financial institutions offer a slightly higher interest rate if you invest online. So, look for tools like this. Even a higher interest rate of 0.10 or 0.25% can make a difference if you are investing a very large amount.
It is recommended that you only look at strong AAA rated deposits in the case of a firm fixed deposit.
