FD Investment: People are getting good returns by investing in bank FDs. If you pay attention to some important things while investing in FDs, then along with returns, you can also get many other benefits. Most people make FDs in the same bank, they are deprived of 4 big benefits of making FDs in different banks. If you want to invest in FDs, then definitely know the benefits of making FDs in different banks.

1. Risk is reduced -

By making FDs in different banks, the risk of financial loss is reduced. Interest rates in FDs keep fluctuating, so fixed deposits of different periods should be chosen. You will get average profit due to the increase or decrease in interest rates in these. Because in one FD, the interest rates will be low, then there are chances of interest rates increasing in the other. If you want to invest four lakh rupees, then you can make four different fixed deposits (FD benefits) of Rs 1 lakh each. You can choose their duration as 1, 2, 3, and 4 years.

You will keep getting money every year: By making FDs in different banks, you will have the advantage that when the 1-year FD matures, you can reinvest it in a 4-year FD (FD me gives). Due to this, you will keep getting money in between due to the maturity of FD after one year and for that, you will not have to take an FD break (FD tudwane ke nuksan). You can also get different interest rates by making FDs in different banks. If the interest rate (bank FD interest rates) is low in one bank, then it can be more in another.

2. Selection of period in FD -

Choosing the period of investment (FD tenure) in FD is most important. Before choosing a long term, make sure that you will not have to break it in between due to need for money. If you break FD in between, you will not get much benefit, and a penalty (penalty on breaking FD) can also be imposed.

This is how interest rates are affected: If a bank gives 5% return on 1 year FD and 7% return on 5 year FD (FD interest rates), then make sure that you do not have to break the FD (FD ke fayde) before five years due to need of money. If this seems so, then instead of investing money in long-term FD, invest in short-term FD. If you break FD in between, you will get the same interest rate on 5 5-year FD as on 1 1-year FD.

3. Tax has to be paid on returns -

If you make a large amount of FD (fixed deposit) in the same bank, then you will also have to pay tax on the interest received on it. If you get interest of more than 10 thousand rupees on an FD investment in a year, then you will have to pay tax on it (tax rules on FD). Those with an annual income of more than 5 lakhs have to pay tax on this income.

Show FD income in ITR: Even if TDS is not deducted from the interest received on FD, the income from bonds and FD (FD news) must be shown in the income tax return. Tax (tax on FD) has to be paid every year on the returns received from FD. If someone's annual income is less than the taxable income, then by submitting an income tax return, you can get a refund of that amount which has been deducted in the form of TDS (TDS on FD).

4. Investment in FD is done in this way -

Most people think that FD is only in the bank (bank FD news). But it is not so, it is of two types, one is bank FD and the other is corporate FD. Corporate deposits are usually unsecured loans rather than bank FDs, there is risk in them as there is no guarantee.

Guaranteed returns in bank FDs: Bank FDs have a guarantee of up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation. This guarantee is in case the bank collapses, if the bank does not collapse then the customer gets the full return (FD return). If you have Rs 20 lakh then you can earn profit by investing it in different banks.

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