Mumbai34 minutes ago
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Bank of India has changed the interest rates of green deposit and savings deposits. After a recent change in the repo rate, the bank has reduced the interest rate on 999 days of green deposit from 7% annually to 6.7%. This rate will be applied to deposits of less than 1 lakh to 10 crore rupees.
In addition, the interest rate on savings deposits up to Rs 1 lakh has been reduced from 2.75% to 2.50% annually. The new rates are applicable from 7 July. There has been no change in any other rate of savings deposits.
What is green deposits? Is it different from FD?
The Green Deposit Scheme is similar to a fixed term deposit. In this, such people can invest, who want to help in making the environment clean and living with their money.
Because, the bank invests money in the same projects that work on renewable energy, green building, and smart agriculture and water-vest management projects. An amount of more than 1000 rupees and less than 3 crore rupees can be deposited in it.
6.25% interest on 1 year FD in SBI
State Bank of India (SBI) had cut interest rates of fixed deposits (FD) by up to 0.25% in June. SBI is now getting 6.25% interest for 1 year FD. The new interest rates are applicable from June 15. Earlier, the bank had also cut interest rates by 0.20% on 16 May last month.
5 special things of fixed deposit
- Fixed Interest Rate: In FD, customers get the interest rate already fixed. For example, if you put in FD for 5 years at an interest rate of Rs 1 lakh 7%, you will also get interest with a total deposit amount when the period is completed. This interest can be simple or compound.
- Flexible Tenure: The duration of FD can range from 7 days to 10 years. You can choose a period i.e. tenure according to your need. Short -term FD pays less interest, while long -term FD gets more interest.
- Security: Your money is completely safe in FD, especially if you invest in a reputed bank or NBF. In India, it gives an insurance cover to FD up to Rs 5 lakh, that is, even if the bank drowns, your money will be safe.
- Liquidity: If you need money in the middle, you can break FD ahead of time, but it may have to pay some penalty, and interest will also be less.
- Tax exemption: If you invest in 5-year tax-saving FD, then you can get a tax exemption of up to Rs 1.5 lakh under Section 80C. But remember, the interest from FD is taxable.
Keep these 3 things in mind while making FD
1. It is necessary to choose the right tenure
It is necessary to think about his tenure (duration) before investing in FD. This is because if investors withdraw before maturity, they will have to pay the fine. Before the FD mature, it will have to be given a penalty of up to 1% if it breaks. This may reduce the total interest earned on deposits.
2. Do not put full money in the same FD
If you are planning to invest 10 lakh rupees in FD in one bank, then instead invest in more than one bank in more than one FD of 8 FD of 1 lakh rupees and 4 FD of 50 thousand rupees. If you need money in the middle, you can arrange money by breaking FD in the middle according to your need. The rest of your FD will be safe.
Tax exemption is available on 5 -year FD
The 5 -year -old FD is called Tax Savings FD. On investing in this, you can claim a cut of Rs 1.5 lakh from your total income under Section 80C of the Income Tax Act. Understand this in easy language, you can reduce your total taxable income by 1.5 lakhs through section 80C.
