Fixed deposits are a convenient and hassle-free way to save money. They can easily be opened by depositing a lump sum amount and picking a fixed duration that suits your needs. Your money earns interest during this tenure enabling you to grow your wealth and secure your future.
Fixed deposits are not only meant for long term savings. They also provide short term advantages with their tax-saving benefits. Let’s get to know how a tax savings fixed deposit can be profitable for you.
What are the benefits of a tax-savings fixed deposit?
It is a safe instrument: Fixed deposits are offered by banks. You can simply go to a bank of your choice and open a fixed deposit account by submitting a lump sum amount. There are no middlemen involved. You deal directly with the bank, and the Reserve Bank of India monitors the bank to eliminate any scope of the fraud. This makes fixed deposits a low risk and secure product for investing.
It offers better returns than savings accounts: As opposed to saving money in a bank account, a fixed deposit provides you with a higher rate of interest. This facilitates better earnings over a period of time.
It enables tax deduction under Section 80C: Fixed deposits allow tax saving under Section 80C. You can get tax deductions of up to ₹1, 50,000 under Section 80C of the Income Tax Act of 1961 for your investment in a fixed deposit. However, to qualify for Section 80c deduction, you need to choose a lock-in period of at least five years. Moreover, you are also required to register your PAN card with your bank.
It allows you to take a loan: You can take a loan against your fixed deposit from the bank. The bank will charge you 1% or 2% above the rate of interest on your deposit, and you need to settle the loan within 60 months. This can be a great option if you need funds for an emergency.
It is not a volatile investment: Most investments are impacted by the fluctuations of the market. This increases their risk quotient and can cause financial stress and anxiety. A fixed deposit, on the other hand, is not affected by market fluctuations. Your invested money is kept safe with the bank, and you earn a high interest when you withdraw the funds on maturity.
It provides high rate for senior citizens: The rate of interest for a fixed deposit is higher for senior citizens as compared to others. This ensures better earnings for people above the age of 60 years.
Secure your money with YES BANK’s tax savings fixed deposit
The YES BANK fixed deposit allows you to invest and save your funds for a future contingency. You can enable tax saving under Section 80C and safely store your money in the deposit so that it can grow over time.
The rates of interest offered by YES BANK are some of the most competitive in the market, so you earn your money’s worth, while enjoying the credibility and dependability of a brand name like YES BANK.
YES BANK also offers a reinvestment option if you wish further to invest your money in a scheme of your choice. You can do so after your deposit’s tenure is over.
The benefits of a fixed deposit are plenty. So, if you wish to enjoy financial stability, you can choose the YES BANK fixed deposit and enjoy the benefits of competitive interest rates over time.