5 Important Things To Know Before Opening An FD Account During Covid Times

Due to the COVID-19 crisis, most of the banks have reduced interest rates on fixed deposits. In such a situation, you should be careful if you are planning to make a fixed deposit.

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Fixed Deposit: The COVID-19 pandemic has impacted the world financially. People are looking for safer and better ways to invest their money. If you are planning to put your money in a Fixed Deposit (FD) in this period, here are some important things you should know. Making an informed decision with reference to investments will help you get higher returns. And your money will also be in safe hands.

Keep these five things in mind while making FDs

1. First of all, decide how much money you want to save and for how long. Once you have made an FD, don't break it before its maturity. Doing so can lead to losses. 

2. In the COVID-19 era, most banks have reduced the interest on FDs. So, before making an FD, you must compare the interest rates offered by different banks. Make sure you choose the safest option. After this, make an FD plan. 

3. Apart from banks, the post office also gives good schemes on FD. Therefore, before making an FD, go to the nearest post office and inquire about their schemes. You might find a better scheme there. 

4. If you get an interest of more than Rs, 10,000 annually on the FD, it is taxable. If your income doesn't fall in the taxable range, you can avoid tax by submitting the relevant form. Make sure you find out more about this. 

5. You must make someone a nominee in your FD. By doing this, the nominee will easily get the full amount of the FD in case of any unfortunate incident. So, this is an important step you shouldn't forget.