FD is the short form of Fixed Deposit, it is an investment method that is found by the banks. People will try to invest their savings money in the banks for future purposes with high return rates. So, while investing the FDs in the banks, it can risk-free and another thing is that the bank will offer slightly lower interest rates which is compared to non-banks. Also, Fixed Deposit in banks will pay back the customers once their duration is over with good returns and there are some banks that offer best fd rates India without any risk-taking. Below are the things needs to be considered for opening the FD account.
Opening an FD account
You can open the account with the bank where you have already a savings account. Sometimes few banks don’t allow you to open the FD account without having to open a savings account. But required to submit the KYC documents in case the bank allows you to place an FD without a savings account.
Minimum and Maximum Investment amount
The minimum amount that needs to open a fixed deposit will vary from bank to bank. But there is no fixed amount where you need to invest in FD exactly.
Tenure of FD
The duration of the FD can be varied from one bank to another and you can invest in FD for a minimum period of 7 days and a maximum of 10 years. Also, you can choose the period where you can keep the FD as per your requirement.
The interest rates which is offered on FD will depend upon the period you are investing in FD and also varies from bank to bank for FDs for the same tenure. Interest Payments are also known as the best fd rates India which gives a good return as per the investment into account.
The interest received on FD is taxable in the hands of the investor and rates are applied according to the income tax slabs. So, TDS will be deducted by the bank if the interest payment in one financial year exceeds more Rs10,000 which is as per the current tax laws.
FD is very safe for investments which have many facilities like a nomination, automatic renewals, and premature withdrawals. However, above things can be considered as the best fd rates India that would afford many benefits to people. Hope that I have covered all the topics in my article about things needs to be considered for opening the FD account. Thanks for reading!