5 Tips to Make the Most of Your Fixed Deposits

For risk-averse investors who want to protect their money from any kind of market instability, fixed deposits (FDs) are the safe of choice. Although fixed deposits offer a lower income than other investment options with a greater exposure to equities, one of the key factors influencing individuals to pick FDs is that they are risk-free.

Search Online Fixed Deposit Accounts

Nowadays, if you open a fixed deposit online, certain banks will give you a bonus interest rate. It is now feasible to open any type of bank account remotely without having to go to the bank branch as consumers become more accustomed to using internet banking. You can examine the interest rates on fixed deposits given by several banks online and select the one with the best interest rate.


5 Tips to Make the Most of Your Fixed Deposits


Company Deposits

Bonds with triple-A (AAA) ratings and corporate deposits pay greater interest rates than bank deposits. Investment-grade debt bonds with a high level of creditworthiness and the best ability to repay investors are given AAA ratings by the credit rating agencies. Consequently, they are just as secure as bank fixed deposits.

Submit form 15G and 15H

To ensure that TDS is not taken from your return and that it is safe, you can file forms 15G and 15H if you do not have taxable income. However, take notice that this form is intended for individuals who fall under the tax-exempt category and have a net annual income of not more than 2.5 lakh. The tax agency is informed not to deduct TDS because your income is below the taxable threshold using the forms 15G and 15H. Make sure not to submit the form if you belong to the group with taxable income.

Cumulative Deposits

Compound interest is advantageous when you invest in cumulative deposits. Banks typically compound interest every three months, but corporate fixed deposits do not. You can eventually earn bigger yields thanks to the power of compounding. However, you must disregard additional factors like safety, liquidity, etc.

Place Deposit in Name of Parents

The majority of banks increase fixed deposit interest rates for senior persons by 0.50 percent. You can open fixed deposits in your parents' names if they do not have taxable income. Avoid doing so, though, if they fall into a higher income tax rate.



Blog Home | Visit Our Website | Life Insurance


Location: India

Comments

Post a Comment

Popular posts from this blog

Check Your Health Insurance Policy Status

Image
  There are various liabilities for earning individuals where you might spend your income. Purchasing a car or a piece of electronics may be viewed as a liability. The cost of a medical emergency affecting you or a loved one, though, is one of the largest liabilities you could encounter in life. Investing in a family's worth of comprehensive health insurance might easily prevent such liabilities. However, there may be times when you overlook checking the status of your coverage, particularly in the midst of a medical emergency. Here's how to make sure your coverage is still in effect and save yourself any hassles in the event of a medical emergency. Importance Of Verifying Accuracy Imagine the following case: You and your family are traveling. Your father unexpectedly becomes ill while sightseeing and needs to be hospitalized. You enter your policy information while he is in the hospital to use the cashless claim feature. However, you are told that the non-payment of prem
Read more

HOW SHOULD YOU PLAN FOR RETIREMENT?

Image
Introduction: Early retirement planning is still a relatively new concept in India. People who reside in cities and villages still rely on their offspring after retiring, if we ask them. Some retired public sector workers can rely entirely on their children, while others can bank on their pensions.   They don't even consider the possibility of early retirement planning. How to plan for retirement in India? Here is a guide to early retirement preparation in case you are now convinced about the idea but are unsure of how to proceed. Early Start: Time is money holds true for investment goals including retirement planning as well. This is because the amount you need to save amount every month to reach your goal will depend on how much time you have to achieve the goal. It means you can reach your retirement goal with much smaller monthly savings if you begin early. However, the delay will ensure you have to save more every month. Start investing early to reach your retireme
Read more

REASONS WHY WOMEN SHOULD PURCHASE LIFE INSURANCE

Image
  Introduction In today’s modern world, gender distinctions are starting to blur. Women are achieving success in all areas, which has led to more financial independence and freedom. Women in today’s society have also started taking up the role of. By sharing the cost of housing, mortgages, and children's education, they raise the standard of living for families. Moreover, they even help their retired parents with their finances. In addition to women who work, homemakers also contribute significantly to the economy. The cost of the family will increase if outside aid is required for childcare and household chores. Hence, it is important that the income and other invaluable contributions of women, such as yourself, be protected. Life insurance is one such financial instrument that can protect your family’s financial security and ensure stability in the event of any unfortunate event. That’s why women also need to be insured. However, as we can see, women own even less than 30% of
Read more