Know these things before investing money in FD

Fixed deposits of banks can be a better option for deposits and savings. Investment in these is more secure and returns are also pre-determined.

 Apart from this, FDs are not market linked schemes, so market fluctuations do not affect them.

There is also an option to choose different tenures while making a fixed deposit in the bank.

 In such a situation, you can make fixed deposits for a period ranging from 15 days to 10 years as per your convenience.

 There are a few things to keep in mind before keeping your money in a bank FD. Let us tell you what are those important things.

Fixed Deposit is a savings instrument under which interest is earned on the money deposited for a fixed period.

 Before investing money in FD, you have to take special care of the income tax slab.

 If you fall in the 30% slab of income tax, then a major part of the interest earned on FD will be deducted in tax.

 Sometimes banks launch special FD schemes for 444 days or 650 days or 888 days. Higher interest is paid on investing in these schemes.

 You can also invest in sweep-in FDs of banks, which maintain liquidity and also get interest at par with FDs.