Grow Your Money With Fixed Deposit!

Fixed Deposit is one of the most preferred investment option among conservative investor who need fixed and regular income. Fixed Deposit also popularly known as Term Deposit is an investment option wherein interest rate is fixed for a predefined term. Deposits placed by an investor with companies are known as Company Fixed Deposit. These deposits are accepted by manufacturing companies, financial institutions and non-banking finance companies. Deposits mobilized by these companies are governed by the Companies Act u/s 58A.

• The tenure of company FDs can range from a few months to a few years.
• You can choose from monthly, quarterly, half-yearly, yearly or cumulative interest payment option.
• The interest income rate earned on FD is added to your income and is taxed as per your income tax slab.
• In cases where the annual interest income exceeds Rs 5,000; TDS will be deducted by the company.
• If you do not want the TDS to be deducted, you need to submit form15G/H with the company.

Being fully aware is the first step while taking any financial decision. In that case, a fixed deposit account, much like a savings account (but with better return), ensures that you get back everything you put in and more.