Investment

In present scenerio,  it is advisable to invest in Fixed Deposits in Nationalised banks which assured,  stable and good return with no risk.

For senior citizens, all banks are offering additional 0.50 to 0.75% interest extra.

Hi

Investment in NSC & Int accrued on NSC is eligible for Tax Savings so from pint of view of tax savings go for NSC.

Int on FD has diff rates.8% to 10%. Sr citizen gets 0.5% additional rate of FD.

Priya,

If a person is conservative and does not want to take risk then definitely Investment in Fixed Deposits is good. Rate of interest varies from bank to bank and also period to period.

For senior citizen there is always 0.50% high rate as compare to non senior citizen.

If investment is done for 5 years then it is advisable to take 5 years tax saving fixed deposits bcoz by taking this, a person will get deduction u/s 80c.

I hope this will help you

Thanx

CA Anubhav Vishnoi

8750089567

Thanks Mr. Subhash and Vaibhav for you replies. What will be difference in yield when i withdraw after 5 years.. Isuppose NSC issued by post offices is also a good option. Is that true?

There will be difference in yeild rate between periodic interest payments and maturity interest.

In periodic interest say- monthly, quarterly interest will paid as per your standing instructions for interest payments whereas in case of withdrawal on maturity ex; 5 years, interest will be compounded quarterly basis and it will make good amount interest on interest if amount of fixed deposit is higher side.

Hence yeild rate on maturiy is higher than the periodic interest payments. 

Priya interest is always taxable.

Yes NSC is also a good option bcoz the invested amount and accrued interest both qualifies for deduction u/s 80c. TDS is not deducted on annual credit interest. A person can take loan on NSC. NSC can be transferred easily. So many benefits.

Thanx

CA Anubhav Vishnoi

8750089567

Hi

Yield It depends n rate of Interest, compare rate of interest.

In NSC int is accrued annually & where is its monthlly in case of som FD.

So yield on FD will be more if rate of Int is same in both the cases.

Only plus point for NSC is that Int eraned on the same is tax free so you are saving IT on the same.

Thx//Vaibhav

Thank you such for all your valuable replies...