Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Fixed Deposit is a bank deposit with a predetermined interest rate and tenure, offering capital safety up to insurance limits.
FD locks your money in a bank for fixed months or years at promised interest — safe but taxable returns.
Interest compounded quarterly in most banks. Premature withdrawal attracts penalty. DICGC insures deposits up to ₹5 lakh per bank per depositor. Tax deducted at source if interest exceeds ₹40,000 (₹50,000 for seniors) annually.
₹3 lakh 5-year FD at 7% compounded quarterly matures to roughly ₹4.23 lakh. TDS applies if annual interest crosses threshold — declare in ITR for slab adjustment.
Added to total income taxed at slab rate regardless of TDS. Senior citizens get higher TDS threshold and 80TTB deduction on interest.
Cumulative reinvests interest till maturity. Non-cumulative pays interest monthly/quarterly for income needs.
Only ₹5 lakh per bank insured by DICGC. Split large amounts across banks for insurance coverage.