People are ecstatic about the rate hike in the fixed deposits, most of the things are in favor of this scheme which has contributed to its success, yet there are a few drawbacks which are associated with this scheme through none of them should be a cause of major concern for the investors but still it is important for a person to be aware about every aspect of this facility.
A term deposits scheme requires the investor to be patient as the more the tenure of the deposit the more investor would earn, also there are various other facilities like stocks, mutual funds that can yield comparatively higher returns in a very short period of time.
The safety feature of this scheme is what keeps the investors in high spirits which is lacking in all the other investment options. The other drawback with this scheme is tax deductions. The interest that the investor earns comes under taxable category and TDS is deducted from the total interest earned by the investor.
2 comments:
Thank you for taking your time and writing this blog. This blog surely helps to know about things one must consider before going for FD's.
suppose i have two deposit amount of Rs.1,25,000/- each in two branches of same bank will it attract TDS?
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