Bank FD : In today’s time, Fixed Deposit (FD) is considered to be the safest option of investment. Especially senior citizens and those who want to stay away from the risk of stock market, prefer to invest their money in FD. But doing FD without complete information can sometimes lead to loss, because the interest rates of every bank are different and this difference has a big impact on your returns.
Big government and private banks usually offer different interest rates for different tenures. For example, the interest received on FD of 6 months, 1 year, 3 years or 5 years is not the same. Many times it happens that for the same period, there is a difference of 1 to 2 percent in the interest rates of different banks. Now imagine, if you had made an FD in a bank with low interest, then the same money could have given higher returns in some other bank.
Bank FD: Senior citizens get more interest on bank FD
Apart from this, some banks also give additional interest to senior citizens as compared to ordinary customers. In such a situation, if you are a senior citizen and get FD at normal rate, then you will get less benefit. Similarly, some banks offer higher interest for a limited period under special schemes. If you do not choose the right bank at the right time, you may be deprived of this additional benefit.
Another thing to keep in mind is tax. The interest received on FD comes under the ambit of tax. If your annual interest exceeds a certain limit and you have not filed Form 15G or 15H, then the bank can deduct TDS. In such a situation, it is important to understand the rules beforehand, so that there is no problem later.
Nowadays, many people trust only their old bank and get FD done there, whereas it is important that you compare the rates of other banks. By doing online comparison, you can easily find out which bank will give you more return on your money. Along with this, also check the reliability, service and timely payment of the bank.
Overall, don’t be under the illusion of just being safe before investing in FD. By choosing the right bank and the right plan, you can get the most out of your money and avoid any losses in future.
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