FD Investment- If you are thinking of investing in FD, then keep these things in mind
Rate of interest:
Before investing in any FD scheme, it is important to check its interest rates. Additionally , keep in mind that senior citizens can often enjoy an additional interest rate of 50 basis points on their FD investments.
Pay attention to the investment period while choosing an FD. Generally , longer term investments ( 1 to 3 years) fetch higher interest rates.
Understand that once you invest in an FD , your funds remain locked until the tenure of your FD scheme is completed. Withdrawal of money prematurely means losing interest rate.
A lesser known fact is that returns from fixed deposit schemes contribute to taxable income. It is important to be aware of the tax implications associated with the gains from your FD investments.