If you keep your money in the savings account, you need to change your habit. You should immediately shift your money to the fixed deposit account and start getting more interest rate on the deposited amount. Fixed deposit is the investment product in which you can put your money for the fixed period of time and earn the rate of interest on it. The saving a this one of the most preferred investment that is opted by the investors.
The main reason behind its popularity is the security of money and good returns. The investment always comes with the risk and hence many people refrain from investing their money. But fixed deposits is devoid of any such risks. The bank keeps the money with them safely and with the maturity of the term the principal amount along with the total interest rate is given to the investors. There is no headache to loose your money to anyone. It also offers a good interest rate over the deposited amount and hence the returns are quite good as well.
Understanding the fixed deposit:
- The bank holds your money for the fixed tenure which is selected by you and in return, you can earn the interest rate over it. Thus that interest rate is the profit amount that you will be receiving along with the principal amount.
- The fixed deposit can be categorised under the short term and mid to large term deposits. It is based on the time period for which the fund is fixed with the bank. The tenure includes from the minimum of 7 days to the maximum of 10 years.
- If you are in need of imminent fund and thinking to break your FD and use the money of it. Well, you can do that but then you will not get the full benefits of the fixed money. So instead, you can choose to avail the loan against the fixed deposit and meet your financial requirements.
- The fixed deposit scheme can be tax saving as many banks come up with this option. The total amount taxable can be deducted with the amount fixed. There is a limit to such amount as well and the tax deduction is applied only for ₹10,00,000. whereas the interest gained is still taxable. Thus, the fixed deposit in overall view is a taxable service.
Eligibility Criteria Required:
Though any individual is eligible to open their fixed deposit account and can enjoy the facilities of earning a good interest rate on the deposited money. But here you will find the other factor that can affect your fixed deposit accounts.Below mentioned individual or group are eligible for a fixed deposit
- The applicant should be the resident of India.
- Hindu undivided family
- Sole proprietorship firms
- Partnership firm
- Private limited companies
- Trust accounts
- For the investor who book the fixed deposit of worth more than ₹ 50,000, the PAN card is mandatory.
- For the Senior citizen, the Proof of age is required to establish that they are eligible under the senior citizen category or not.
The documents required by the individual, Hindu undivided family, and sole proprietorship at the time of applying for the fixed deposit are:
- A coloured photograph
- Passport/ Driving License
- Last six months bank account details
Documents required from the trust, association/ clubs for the fixed deposit are as follow:
- Photographs of the member operating the account.
- A Copy of the Trust Deed/ Bye- laws of the association.
- A Copy of registration certificate.
- A Copy of the resolution of trustee authorizing the member to operate and open the accounts.
Fixed deposit Calculator:
The fixed deposit calculator is the tool that can calcuate accurately the interest amount you will be getting after the maturity of your fixed deposit amount. Once you feed the details about amount put in FD, the interest rate and the tenure the fixed deposit calculator will immediately calculate the total interest amount and total amount i.e the principal + interest rate. It helps you to compare the rates of different banks and choose the one which is more beneficial for you.
If you want to put your money in the fixed deposit, you should shop around a bit and look for the bank which offers you the best interest rate according to the tenure of the deposit. Make sure to go online and know the rates offered by a different branch. Try to extract the optimum benefits through your fixed deposit and increase your savings with high returns.