Punjab National Bank (PNB), Bank of India (BoI) and HDFC Bank have recently increased the interest rates of Fixed Deposit (FD). In such a situation, if you are planning to get FD these days, then you must know about the new interest rates of these banks before that.
Here we are telling you how much interest the major banks of the country, including these 3 banks, are giving to the general public on FDs of less than Rs 3 crore. So that you can invest in the right place according to you.
Keep these 3 things in mind while getting Fixed Deposit
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. Breaking the FD before it matures will attract a penalty of up to 1%. This may reduce the total interest earned on the deposit.
2. Do not invest all the money in a single Fixed Deposit
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 Fixed Deposit
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.
