What is Fixed Deposit

Fixed deposit is the way of saving of Your money whether it your income or have fund in cash. You will get high interest on it. Today interest on Fixed Deposit in Govt. bank is on average 5.10% pa. You can create minimum Rs. 1000 Fixed deposit for one year or more. You can break it before maturity but you have to give the penalty for this.  

I remembered in 2016, I had Fixed deposit of Rs. 16 Lakh almost one lakh in each bank and I got 9% pa interest and now almost 4% decrease in the interest of Fixed deposit in India. 

Process of Opening Fixed Deposit 

Today fixed deposit can open in almost all the bank app. I have 4 fixed deposits for 4 different goal in my bank. Just open my bank account in app through my thumb and go to deposit and open the tab of open fixed deposit. With in few minutes, I fill the detail and my fixed deposit has ready and fund will deducted from my bank account. No need to go physically to bank. 

Fixed deposit gives us compound interest which we receive at the time of maturity with principle amount. 

We have to set the repayment instruction the app

a) credit the principle and interest on the maturity of fd

b) credit interest and principle fd renew

c) renew automatically both fd and interest after maturity for next same period. 

benefits

We can get 90% against fd

we can partly break the fd

we can save income tax under 80C

If interest is more than Rs. 10,000 from fd in one financial year, you ahve to paid TDS 10% on interest. 

IF total income does not fall under tax limit, you can submit form 15 g and avoid TD even more interest than Rs. 10000 pa 

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