The first quarter of any year is important for tax savings and investment decisions. At this time we all take important decisions regarding financial security. Amidst the ongoing fluctuations in the market, Fixed Deposit (FD) remains a reliable and practical investment option providing stability, security and tax benefits.
Recent budget announcements have made FDs more attractive. The government has increased the TDS limit for bank FDs. It has been increased from Rs 40,000 to Rs 50,000 for general individuals and from Rs 50,000 to Rs 1 lakh for senior citizens. Let us know about the major benefits of investing in FDs…
Huge uncertainty in the market
Stable options in volatile markets These days, there is a lot of uncertainty in the market due to global political tensions and fluctuations in interest rates. Short-term volatility is keeping investors worried amid the possibility of long-term gains.
The market is not happy even with the income tax exemption and the reduction in repo rate. In such times, FD has emerged as a strong support. With assured returns unaffected by fluctuations, it provides peace of mind to risk-averse investors. FD is a better option for people looking for regular income.
Tax benefits with safety: FDs offer a perfect combination of savings and tax efficiency. Tax savers can avail a deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act through FDs, which have a lock-in period of five years.
Compared to other tax-saving instruments like ELSS (Equity Linked Se wing Schemes) and ULIPs (Unit Linked Insurance Plans), FDs are more attractive due to their simplicity and assured returns.
Overdraft facility: In emergency financial situations, FD provides an excellent solution to obtain the required funds while maintaining investments. Through the overdraft facility, banks provide a credit line by accepting the FD as a guarantee.
Customers can avail loans up to a certain percentage of the total amount of the FD. Interest is payable only on the amount utilised. Since the FD is guaranteed, banks usually offer loans at competitive interest rates.
Convenience: Along with security and returns, it is also a better option due to its simplicity and easy availability. Whether through a bank branch or online on a digital platform, opening an FD account is very simple. No special financial expertise is required to understand its terms and conditions. Features like auto-renewal, nomination and online tracking are also available with it, which make it a symbol of convenience as well as security.
Uttam Tebriwal, Deputy CEO, AU Small Finance Bank, says that while evaluating your investment options for tax planning this year, consider the long-term benefits of FDs. Whether your goal is to save for future expenses, avail tax benefits or just grow your savings steadily, FDs will continue to be a reliable companion in achieving your financial goals.
Smart investing not just means earning high returns but also ensuring peace of mind, and through FDs you can have both.
Related Articles:-
- Saudi Arabia indefinitely suspends 1-year multiple-entry visas for 14 countries
- Metro Fare Hike: Rapid Metro fare will increase, know how expensive the journey will be
- Electricity Dept changed the plan for installing smart meters, this change happened regarding Bijli Bill
- Hajj Pilgrim Alert! Saudi Arabia Ban on children’s Hajj pilgrimage, Details Here
- Public Holiday: Govt Declares Public Holiday On February 12 For All Government Offices And Institutions
