While Provident Funds are low-risk investment avenues that can help you grow your money easily, it is important to invest the PF funds in smarter investment avenues that enable you to grow your funds furthermore. Bajaj Finance Fixed Deposit is a preferred investment avenue for setting aside your funds, to multiply them.
How To Get Maximum Returns From Fixed Deposit?With steady returns over a fixed period, Fixed Deposits offer stability with better returns. When you choose Fixed Deposit with higher interest rate, you can boost your returns easily.
For those looking to maximise their returns with Fixed Deposit, here are a few steps to undertake:Plan your investment strategyInvesting in FD alone is not enough to gain more returns, as you need to know how to manage your deposit well. Once your deposit reaches the maturity date, you can consider re-investing, especially as many financial institutions offer higher FD interest rates on renewing investments. Bajaj Finance also offers auto-renewal facility, so you can choose to renew your deposits, while you’re booking them.File your returns on timeIt is important to file your returns on time, and be aware of the latest changes or modifications in the tax laws for FD returns. You can also avail tax exemptions, if you file your returns with Forms 15H or 15G. If you fall in a low-income bracket, you can also receive tax exemption.Ladder your FDs for liquidity and tax benefitsMake the best use of your funds by dividing a single corpus over multiple FDs different tenures. This can help you see your fixed deposits as a financial backup, which help you fulfil your financial requirements easily. This also enables you to gain tax benefits, as you have multiple maturity dates.Choose Cumulative FD for funding long-term goalsCumulative FD enables you to grow your corpus over the tenure, as you get extended benefits of compounding. However, non-cumulative FD helps you gain regular payouts, which makes them best-suited for retired individuals seeking periodic income.
These simple steps can go a long way in helping you maximise gains from your FD scheme, to reduce deductions. You can invest in Bajaj Finance Fixed Deposit, for better returns that help you grow your corpus. You can choose your tenure, avail periodic payouts and earn more returns when you renew your investment. If you’re planning to calculate your maturity amount before you invest, consider using FD return calculator and book your FD today, with an end-to-end online procedure.
Fixed Deposit (FD): Taxable or Tax Free
Tax deducted at source, or TDS, is interest directly deducted from people when they receive payments, salaries, fees, commissions, rent or income from any other sources. The interest earned from Fixed Deposit is taxable, as the rest of your income.
When filing your taxes, you must declare your FD under ‘Income from other sources’, depending on the taxable amount limit, as per your financier. If you deposit a large sum in your FD, tax deductions are incurred at source.