FIXED DEPOSITS ( FD )
ABOUT FD OR FIXED DEPOSITS In this fast moving economy condition FD or fixed deposit are not good return investment source. But fixed deposits are easy and safest for that person who has no any knowledge about latest generation investment options. Fixed deposits also known as FD, term deposits or time deposits
FIXED DEPOSITS ISSUING AUTHORITYAs per RBI or reserve bank of India guidelines FD or fixed deposits can issue or sale banking and Non banking finance corporation (NBFC) including Post Office.
FIXED DEPOSITS ELIGIBILITYThere have no any eligibility or limitation In India for Indian citizens. Anyone can apply fo FD including Minor ,csenior citizens, HUF etc. NRI or Indian who are non resident of India can apply for FD or fixed deposits but interest rates will be comparatively lower than the Indian citizens.
FIXED DEPOSITORS AGE LIMIT There have no any age limit in India as per RBI guideline. Anyone in any age can apply for FD but now a days at time of applying fixed deposits PAN card and ADHAR cardare mandatory.
FIXED DEPOSITS TERMS OR DURATIONIn most of the banks fixed deposits are available for between 7 days to 10 years duration now. Depending on the FD duration or terms interest will vary from bank to bank. Tax saver fixed deposits are for five years or 10 years duration or terms.
FIXED DEPOSITS INTEREST RATESIn India interest rates on fixed deposits is now from 4% to 8% depending on the FD amount, tenure and bank to bank basis. FD interest rates for senior citizens is higher than below 60 years age peoples. Many cases female citizen get addition interest on their FD depending on banks.
FIXED DEPOSITS AMOUNT LIMITAITON There have no any maximum amount limitation for fixed deposits. You can invest any times at any amounts but tax saver FD have a maximum rupees 1,50,000/- limit per year. Minimum FD amount is vary from bank to bank, which is minimum rupees 100/- to 1,00,000/- rupees.
TAX ON FD OR FIXED DEPOSITSAs per Income tax act 1961, all profit or interest generate from you FD amount are taxable. Your FD issuing authority will deduct your interest or profit amount as per your tax slab. If FD holder’s taxable income including FD interest are below the tax exempted limit then no tax will deducted from FD holders fixed deposits.
FIXED DEPOSITS OR FD NOMINEES Nominees are known as those people who can receive the FD amount after certain death of depositors with valid proof. You can nominee any persons in you FD but there have limitation. Nominee persons more than two are not allowed.
DIFFERENCE BETWEEN FIXED DEPOSITS AND SAVINGS ACCOUNT In savings account you can savings any amount for any terms or duration. Not only savings you can also withdraw any times through cash withdrawal form, cheque, ATM card, ECS, RTGS, etc. banking transaction modes. In fixed deposits you can’t withdraw your amount through banking transaction modes before your fixed deposits terms or duration unlike demand deposits or recurring deposits. If you withdrawal your FD or fixed deposits before your term or duration some amount will be deducted from your fixed deposits amounts. In FD or fixed deposits interest rates are higher than savings bank account till the time of maturity. One advantage of fixed deposits is you can withdrawal loan against your FD or fixed deposits on 1% to 2% interest rates higher than the best interest rates on fixed deposits offered.