Fixed Deposit Tips: Know these things before getting FD, it will be beneficial


Fixed Deposit Fixed Deposit (FD) has been one of the most popular investment options in India. People prefer to invest in FDs because of their safe and fixed returns. However, whenever you invest in FD, some important things must be taken care of. Today we are going to tell you about these important things.

choice of tenure
Whenever investing in an FD, think carefully about the tenure. Keep in mind that there is a penalty for breaking the FD before maturity. This can reduce the total interest earned on the deposit.

Invest money in different FDs

  • Full money should not be invested in one FD.
  • If you want to invest 5 lakh in FD, then get five FDs of 1 lakh in more than one bank.
  • This is necessary so that when you need money, you can get an FD broken in the middle according to your need. With this, the rest of your FD will be safe.

FD tax on interest earned on

  • The interest earned from FD is taxed as per the income tax slab.
  • If the interest earned on FD is more than Rs 10,000 in a financial year, then there will be TDS deduction. This will be 10% of the total interest earned. For senior citizens, this limit is 50 thousand.
  • If your income is below the taxable range, Form 15G and Form 15H can be submitted to the bank to not allow TDS deduction on FD.


  • Banks earlier had the option to withdraw interest on quarterly and annual basis.
  • Some banks are now offering the option of monthly withdrawal as well.

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