Fixed Deposit: Take Care Of These Important Things

Fixed Deposit has been a very popular way of investing in India. But in the time of COVID, the FD rates given by banks have come down. If you want to invest in FD, then it is important to keep some special things in mind.

Choose your tenure wisely

While investing in FD, it is very important that the period for which you are investing should be chosen carefully. Because you have to pay some amount in penalty on FD deposit before the stipulated time, this can reduce the profit on your deposit.

Invest money like this 

If you are thinking of investing a large amount in FD, then do not invest all the money in one bank, invest little money in different banks. If you are investing 2 lakhs, then get two FDs of one lakh each in two different banks.

Also understand TDS

You have to pay tax on the interest earned from FD. If you have income below the tax range, then you have to submit Form 15G/ Form 15H to stop deducting TDS.