123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Making The Most Of Your Fixed Deposit

By Author: Aishwarya Mahurkar
Total Articles: 291

Fixed deposits are believed to be the simplest and safest form of investment available for an investor. One of the biggest deductions which banks conduct on an investor’s interest earned is TDS. If the interest an individual earns is higher than ten thousand in a single financial year, the bank will be required to deduct ten percent of the interest earned. This is a huge blow to the amount of interest you could have received. However, since most financial institutions follow their own procedures and deduct the TDS at different times, one can take steps to avoid paying TDS. The first thing an individual can do is space out their fixed deposits. When you are opening a new deposit, the financial institution provides the investor with details about the interest earned at the end of the tenure. What an investor can do is space out their deposits so that the tenure of each ends in different periods of time so in no particular year does the interest earned exceed ten thousand rupees.


Fixed deposits are the perfect way for an individual to increase their savings. One can simply opt for a tax saving fixed deposit to improve their savings. Such a deposit requires the individual to put in a fixed amount of money for a minimum of 5 years. During this period one cannot withdraw money from the deposit. The interest rate offered for such a deposit is higher making it an ideal investment option.


A fixed deposit can be used for a variety of purposes besides simply earning a high interest. The other two ways in which one can make the most of their fixed deposit are:


Emergency fund


It is extremely important for every individual to have their own emergency fund. This fund can usually used in unforeseen circumstances especially for medical emergencies. One can never predict when they may get into an accident or contract a serious disease. In such cases have an emergency fund would make affording medical treatment a simpler and less stress option.


Repaying loans


When applying for any type of a loan, it is extremely important for the borrower to plan how to repay the loan. Most financial institutions require the borrower to repay the loan in monthly EMIs. Any defaults on the payment can force the bank to serious action. Hence one can simply start a fixed deposit to help in periods where the borrower cannot afford the EMI.


One can use their fixed deposits for a variety of purposes. It is a safe investment which guarantees high returns.

Author Bio :

An experienced writer on finance topics, the author articulates of investment choices such as fixed deposit products in India & recurring deposit schemes. She writes about a variety of topics including the benefits of recurring & fixed deposits and how to make the right investment choice.

Total Views: 80Word Count: 471See All articles From Author

Investing / Finance Articles

1. No Credit Check Faxless Payday Loans
Author: www.faxlesspaydayloansbadcredit.ca

2. Understanding Corporate Debt Restructuring In India
Author: Aniket Vichare

3. Tips To Know Before Applying For A Personal Loan By Srg
Author: srg housing

4. The Ultimate Guide To Cryptocurrency Wallet
Author: cryptocoinx

5. Buy And Sell Mutual Fund Online | Moneytreesolution
Author: Moneytreesolution

6. Can I Get A Loan Despite Bad Credit Unemployment?
Author: nocreditcheckloansguaranteed

7. Advantages Of Binance Crypto Exchange
Author: Cryptocoinx

8. Payday Loans For People On Benefits Direct Lenders - 100% Online Decision
Author: Hamish Rutherford

9. Best Mcx Commodity Tips Provider In India
Author: Abhishek

10. Why Open An Nri Account?
Author: Samantha Kennedy

11. Commercial Mortgage Loan
Author: Loansa Assit

12. Why Perform A Fundamental Analysis Of A Company?
Author: Aastha Kapoor

13. Open Online Trading Account With The Lowest Brokerage Charges
Author: Krutika Sharma

14. Avail Reliable Tax Return Online Australia Services To Get The Job Done Like Never Before
Author: jameslogaa

15. Get Yourself Best Sip Plans For Long Term
Author: Jignesh Shah

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: