Fixed deposits are popular investment avenues that help in the risk-free growth of your savings. By earning a high interest from FDs, you can easily attain your financial goals, grow your savings and ensure a comfortable retirement.
What are Fixed Deposits?
A Fixed Deposit stands as a secure investment avenue enabling you to convert a lump sum into guaranteed returns over a designated timeframe, as per your preference. It assures the initial investment along with interest earnings at the predetermined rate, unaffected by fluctuations during the chosen tenure.
Two categories of Fixed Deposits exist: cumulative FDs and non-cumulative FDs. In a cumulative Fixed Deposit, your deposited sum's interest compounds annually until maturity, typically serving as a long-term investment strategy yielding heightened returns.
5 Facts You Probably Did Not Know About Fixed Deposits:
Fact 1: Company FDs yield higher returns
Banks and NBFCs offer fixed deposits, but bank FDs offer a relatively low rate of interest. Company fixed deposits, on the other hand, give you the benefit of higher rates of interest. This means that you can multiply your investment corpus and get better returns over the same tenor.
When you open a company fixed deposit with Bajaj Finance get benefits like high interest rate, flexible tenor and minimal investment amount.
Fact 2: Senior citizens get a higher interest rate
Senior citizens get a higher rate of return on investments. Bajaj Finance offers one of the highest interest rates in the market, with additional interest for senior citizens. This makes financing your post-retirement life hassle-free and comfortable. You can further benefit by choosing a non-cumulative fixed deposit to get periodic returns that replace a salary.
Fact 3: You can get a loan against your fixed deposit
Unexpected expenses can arise at any time. Finance your all expenses conveniently with a loan against a fixed deposit. This way, you don’t need to liquidate your investments and can opt for a low-interest loan.
Fact 4: You can use this investment to save on taxes
As per income tax regulations, interest income of up to Rs. 5,000 from company fixed deposits are tax-free. If your total taxable income, including interest from FDs, is lower than the taxable amount, you can submit form 15G/15H and not pay any tax on this amount.
Fact 5: First account holder must pay TDS in case of joint accounts
It is possible that you choose to open a bank FD jointly, with your spouse, sibling or parent. In this case, it is important to know that the first account holder will have to pay TDS (Tax Deducted at Source) over the returns. Similarly, the interest is also paid to the first holder’s account.
Conclusion
You can use a Bajaj Finance Fixed Deposit Calculator to plan your finances effectively. All you need to do is enter the amount and the tenor for which you wish to invest. A detailed understanding of fixed deposits can help you make a profitable investment.
