Deposit Scheme- Bank of Baroda has launched a new deposit scheme named ‘Bob Utsav Deposit Scheme’. Under this scheme, on making FD for 400 days, 7.30% interest will be given to general citizens, 7.80% to senior citizens and 7.90% interest to super senior citizens.
SBI launches ‘Amrit Vrishti’ deposit scheme
State Bank of India (SBI) has also launched a new deposit scheme called ‘Amrit Vrishti’. Under this scheme, 7.25% annual interest will be given on FD for 444 days. On the other hand, senior citizens will be given interest at the rate of 7.75% per annum.
Keep these 3 things in mind while investing in Deposit Scheme
1. Choosing the right tenure is important
Before investing in FD, it is important to think about its tenure. This is because if investors withdraw before maturity, they will have to pay a penalty. A penalty of up to 1% will have to be paid if the FD is broken before maturity. This may reduce the total interest earned on the deposit.
2. Do not invest all the money in a single FD
If you are planning to invest Rs 10 lakh in FD in a single bank, then instead invest in 8 FDs of Rs 1 lakh and 4 FDs of Rs 50 thousand in more than one bank. With this, if you need money in between, you can arrange money by breaking the FD in between as per your need. Your remaining FDs will remain safe.
3. Tax exemption is available on 5-year FD
5-year FD is called Tax Savings FD. By investing in it, you can claim a deduction of Rs 1.5 lakh from your total income under Section 80C of the Income Tax Act. Understand it in simple language, you can reduce up to 1.5 lakh from your total taxable income through Section 80C.
