In the last few years, the interest rates on bank deposits have fluctuated significantly. This happened because of inflation in the economy. Due to the fluctuations in inflation, the interest rates on the capital deposited by the bank vary. The country’s repo rate fell by 125 basis points in 2015 and is being cut further in 2016. In such a situation, we are telling you how you can save maximum on your fixed deposit or deposited capital.
Bank Fixed Deposit (FD) Online
Bank deposits can be opened online, so you do not need to visit a bank branch to make a fixed deposit in the bank. Let us understand with an example – if RBL gives you 9.25 interest rate per annum on bank deposits and SBI gives only 7.75 per cent interest rate per annum then you can choose RBL, if it does not have any branch near your home. You can also open FD online. It is true that even if you do not have a savings account with RBL Limited, you can still make a fixed deposit.
Do market research
Before investing or depositing in any type of scheme, you must do thorough research in the market. You read the online schemes for this, go to the website of every bank to get complete information. Many times this site is not updated, then go to the branch there and get information. After that, submit the one which suits you best. Also pay attention to the interest rate.
Avoid Taxes on Bank Deposits
If you receive interest on your deposits in excess of Rs.10,000, the bank will deduct TDS on it. In this case, you can open a joint account. For example, you have made an FD of Rs 2 lakh, on which you get interest at the rate of 8% per annum, that is, you get an interest of Rs 16,000, in which case the bank will deduct tax from it. For this, you should make an FD of 1 lakh – 1 lakh in the name of you and your partner, so that that money can be saved.
invest money in a cumulative plan
Stay away from the plans which offer immediate benefits or double the amount. Investing in such schemes should be profitable and dependable. It is better to invest in schemes that pay quarterly interest and compound interest.
Long term tenure
If you do not have any responsibility in a few years time, then invest in such schemes that will fetch you good interest. Investing for less than one year is useless, invest for at least 1 year. This shows an increase in money.
Conclusion
It should be remembered before investing that the interest rate in the economy is falling and it will happen in the next few years also. In such a situation, plans should also be taken keeping this in mind.
Sometimes you have to break your FD in case of emergency, in which case penalty has to be paid, keep this point also in mind that how much loss you can lose if you withdraw money prematurely.
