As Diwali approaches, it's the perfect time to consider safe and lucrative investment options like Fixed Deposits
(FDs). This Diwali 2024 Fixed Deposit guide outlines essential things to consider before FD investment this Diwali
to make the most of your savings.
1. Check FD interest rates
Comparing FD interest rates for Diwali 2024 across banks is vital, as even
small differences can significantly impact your returns. Look for competitive rates and special festive offers to
maximise your earnings.
2. Choose between short-term and long-term tenures
Consider your financial goals when selecting an FD tenure. Short-term FDs offer greater liquidity but slightly lower
interest rates, while long-term deposits generally provide higher returns but lock in your money for longer.
3. Understand the tax implications of your FD
Fixed Deposit interest income is taxable, and banks deduct TDS if your earnings exceed ₹40,000 (₹50,000 for senior
citizens) in a financial year. Factor this in when calculating your post-tax returns. Some banks offer Tax Saving FDs under Section 80C, allowing deductions up to
₹1.5 lakh.
4. Look for premature withdrawal clauses
Check if your chosen Bank Fixed Deposit allows premature withdrawals and understand the associated penalties. If
liquidity is important to you, ensure the FD offers a favourable withdrawal policy.
5. Consider special FD schemes during Diwali
Many banks introduce special Fixed Deposit schemes during Diwali with unique features like higher interest rates,
bonus payouts or more flexible tenures. Keep an eye out for these limited-time offers to make the most of your
investment.
6. Automatic Renewal
FD auto renewal facility is offered by many banks. In this facility, the accrued interest in addition to the principal amount is re-invested for a pre-determined duration based on your selection. Opting into this FD Auto renewal facility will be reflected in your account opening receipt.
7. Interest Payout
FD investments allow you to choose the frequency of interest payout. Monthly, quarterly and full tenure are the available frequency options. You can also select the interest payout frequency of your choice with FD investments. Most banks offer monthly, quarterly, half-yearly, annual and full tenure interest payout options. To meet your investment objective, select an FD interest payout frequency suitable for you.
Also Read: Simple steps to
open a Fixed Deposit Account
Conclusion
This Diwali, secure your financial future by investing wisely in a Fixed Deposit. By following these essential Fixed
Deposit investment tips for Diwali, you can ensure the best possible returns while enjoying peace of mind. Take
advantage of festive offers, compare rates and choose a scheme that aligns with your goals.
For a smooth and efficient investment experience, consider Axis Bank's Fixed Deposit options, offering competitive
interest rates and flexible tenures. You can start your savings with a minimum investment of just ₹5,000. Enjoy
convenient transfers, an easy account opening process and the benefit of an automatic rollover feature that ensures
continuous interest accrual. With Axis Bank’s digital services, managing your FD remotely is effortless, making it a
reliable and hassle-free way to grow your wealth.
Disclaimer: This article is for information purpose only. The views expressed in this article
are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd.
and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader
for taking any financial decisions based on the contents and information. Please consult your financial advisor
before making any financial decision.
