Those who invest in FD should be careful, banks do not tell these 5 important things
FD - People think that their money is 100% safe by investing in FD. But is it really so? There are many such things done by banks, which are not told to FD investors... So let's look at those things today through this news-
HR Breaking News, Digital Desk- Today there may be many investment options available, but still for many people Fixed Deposit is the most preferred among reliable investment options. Guaranteed return is available on investing in FD. People think that their money is 100% safe by investing in FD. But is it really so? There are many such things done by banks, which are not told to FD investors.
Banks do not tell these 5 things-
How much of your money is safe-
Investing in FD is considered safe, but if the bank defaults, investors may suffer losses. In such a situation, only Rs 5 lakh of investors are safe. DICGC guarantees insurance of bank deposits up to Rs 5 lakh only, so investors should be careful.
You should also keep in mind that this guarantee of Rs 5 lakh is not only for the FD money but also includes the amount deposited in savings account, current account or RD account in your name in that bank. That is, all together will get a guarantee of up to Rs 5 lakh. If the amount is more than this, your money is lost.
Tax will have to be paid on interest-
While filing income tax return, tax has to be paid on the interest earned on FD. However, there is no tax on the interest received on investing in some investment schemes such as pension schemes and Public Provident Fund (PPF). This gives the taxpayer the benefit of saving tax.
There can be a loss on the interest received from FD-
On investing in FD, the interest is the same throughout the period. In such a situation, if you invest in FD in the long term, then you may incur a loss. Even if the bank increases the interest rate on FD later, many times you do not get the benefit of it.
You may have to pay a penalty-
Investment in FD is done for a fixed period. If the money is withdrawn before that, then you may have to pay a penalty. The penalty can be different in all banks.
There are many other investment options available-
Investment in FD is considered safe until the bank defaults. But before investing, you should be aware of other investment options available in the market. Like mutual funds, in which investors can get a return of 12 to 20 percent per annum.