Fixed Deposit vs Mutual Fund Parameter Fixed Deposit (FD) Mutual Fund (MF) Returns Fixed Variable Risk Negligible Significant Investment via Directly with the bank/company Directly with fund houses or indirectly via distributors/brokers Withdrawal The penalty is imposed on premature withdrawal which constitutes lowering of the interest rate at which due returns are to be paid…
On the 1st of February 2020, Finance Minister Nirmala Sitharaman presented the Union Budget 2020 in the Parliament. In it, an increase in deposit insurance to Rs. 5 lakh was proposed which was earlier set at Rs. 1 lakh for the bank account holders. This revision in the insurance cover came into effect from the 4th of February, 2020. What is…
3. Tax Exemption for Senior Citizens: No TDS is applicable on the FD interest of Senior Citizens (individuals aged 60 years or more) if the interest amount does not exceed Rs 50,000 in a financial year. 4. Tax Benefit: Only fixed deposits made for a fixed period of 5 years qualify for a tax deduction…
For every individual, whether salaried or self-employed, saving money proves to be an essential part of one’s life. Saving money is easier said than done. Every individual aims to save a certain amount of money but end up spending it all. This could lead to several problems in the long run when you will be…
We know about fixed deposits, don’t we? But just so that we are on the same page fixed deposits are one of the safest and most consistent saving schemes that guarantee us a fixed percentage of the principal as the return over their tenure. Fixed deposits can be opened by Indian residents, Senior Citizens, and…
