FD is considered a safe investment as it promises safe, decent and assured returns whereas stocks can be risky despite promising high returns. However, both are great investment instruments and you should diversify and invest some part in FDs and some in stocks.
FD Investment: Fixed Deposit is one of the most widely used and popular means of investment. However, interest rates for FDs have not been very impressive in the recent past. When you invest in an FD scheme, you need to keep several factors in mind. Here are a few things you can do to get the most out of your FD. Let’s know about them…
Should one invest in multiple FD schemes?
If you invest in multiple FD schemes for different tenures keeping in mind both your short term and long term goals then you will be able to get returns that will help you meet your financial needs for both short term and long term. will do You can consider investing in multiple FD schemes.
Should FD interest rates be compared before investing?
Yes, you must compare FD interest rates offered by different banks before investing so that you invest in schemes that promise maximum returns.
Is there tax on FD?
Yes, the interest you get on your invested amount is considered as income from other sources and hence is taxable.
