Friday, June 29, 2012

Savings And Investment Scheme Guide For Indian Poor And Middle Class:Bank Deposit


What Scheme Mean?
A bank Deposit is also known as fixed or term deposit,which can be opened by account holders to earn better interest compared to the interest the account balance earn in a saving bank account.

Eligibility
Need to Resident Of India with a saving bank account.

Entry Age
Need to be above 18years.
Minors with natural guardian.
 

Investment
Minimum:rs 1000 per annum
Maximum:No Limit
Deposits over 15 lakh Qualify for special Interest
 
Interest
Depends on tenure of the deposit
Starts from 7% to 9.75% per Annum

Account Holding Type
Indiviual,Joint,HUF,Companies,trust,association,minor

Tenure
Its provided upto 10 years

Tax Benefits Amount invested in Schedule Bank for 5 years is Eligible for tax deduction based on 80c,but Interest earned are taxable.

How to Join The Scheme/Account/Deposit/Policy?
Deposit can be done in Saving account bank only.
Choose nominee and witness signature.
Define tenure for deposit.

Objective And RiskThe prime objective of the bank deposit is to earn better interest on saving compared to what an ordinary saving bank offer.such deposits are preferred by risk averse investors,who find the guaranteed fixed returns extremely reassuring to invest in.

Tips
Check Interest rate,Instead of large deposit split into 3-5 deposits to reduce impact of interest loss in case of premature withdrawal.Do not leave renewal column free else maturity fresh fixed deposit tenure will commence.

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