Bank Fixed Deposits (FDs), otherwise called term stores, is the most customary type of interest in India. You win a settled rate of enthusiasm on your venture, serving your goal of riches creation.
There are different composes: A bank FD, FD with clear in office, flexi-store, uncommon stores (which accompany certain advantages or livens) et cetera.
Further, you have the decision to get enthusiasm on your store at development i.e. aggregate, or non-in total – either month to month or quarterly for the residency you pick. A bank settled store of a higher sum will pull in a higher loan fee and in like manner.
The premium earned on bank FD is assessable according to the arrangement of the Income-impose Act, 1961; in this manner typically charge is deducted at source (TDS).
Here are 10 benefits of a bank FD:
Today, a FD can be booked/opened online (most banks have this facility) in few minutes
Offers a higher rate of interest than keeping money in a savings account
The returns are fixed –– there is no risk as in case of market-linked instruments
Facilitates wealth creation
You have the flexibility to choose the tenure
You can hold multiple FDs with multiple banks
You can avail a loan against the bank FD
It is a liquid investment (since bank FDs can be prematurely withdrawn)
Section 80C deduction for investments in Tax Saving Bank Deposits
When investing bank FDs, consider the one offered by Axis Bank for a hassle-free experience. You can start with as little as Rs 5,000, while there isn’t a maximum limit. Your hard-earned money can be transferred seamlessly from your Axis Bank savings account to the fixed deposit, whereby you can earn higher rate of interest and compound wealth