Bank FDs are a highly
sought-after financial instrument these days. With judicious and attractive
schemes being offered with these FDs is what is making it all the more popular.
The most dynamic feature of bank fixed deposits is that customers can avail
loans against these FDs up to 85 to 95 percent of the value of deposits. The bank FD interest rates come with easy
repayment options and are not very highly marked.
Bank FDs popularity is not
limited to the boundaries of Indian territory, the Non Resident Indians can
also open these accounts. In fact this type of investment is very common among
NRIs. Tax is deducted by the banks on FDs if interest paid to a customer at any
bank exceeds Rs. Ten thousand in a financial year.
Summary: The bank FD
interest rates are quite feasible when it comes to taking loans on these
FDs. This fact has made bank fixed deposits a popular and preferred investment
option with Indians as well as NRIs.
