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Fixed Deposit benefits: These 5 great benefits are available on FD with guaranteed return, do you know about them?

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Everyone knows that FD gives guaranteed returns. But do you know that on getting FD, you get many other facilities apart from returns, which not many people know about. Let me tell you.


Whenever it comes to savings, the name of FD (Fixed Deposit-FD) definitely comes because your investment in it is safe, as well as you get guaranteed returns. In today’s time, of course, people have started talking about investing money in mutual funds, but if you talk to the old people, then even today they do not see any better option than FD. But do you know that apart from guaranteed returns, there are many more features in FDs? People do not talk much on these facilities or do not know much about it. Let me tell you.

Loan facility

If you have got FD done somewhere, then you get the facility of loan in lieu of it. Apart from this, overdraft facility is also available on the basis of loan in many banks. The reason for this is that the amount of FD is in the form of a guarantee with the bank. The bank gives you a loan according to your amount. If you are unable to repay the loan on time, then that loan is covered by your FD amount.

Insurance cover

You are also given the facility of insurance cover on FD by the Deposit Insurance and Credit Guarantee Corporation. Suppose the bank goes bankrupt due to any reason, then you can get an amount of up to five lakhs under the insurance cover along with the return. That is, there is no tension of losing money.

Life insurance

There are also some banks, which also offer the benefit of life insurance on FD. This amount is equal to the amount of FD. This offer is given by the bank to the customers so that they can attract more and more people for FD. However, there is an age limit as well.

Tax benefits

If you make an FD for 5 years or more, then you get a chance to claim tax exemption under section 80C of the Income Tax Act 1961. If you make an FD of less than 5 years, then you will have to pay tax. Apart from this, if the interest received from the bank in any of the five years exceeds 40 thousand rupees, then you will still have to pay tax.

Guaranteed return

Now let’s talk about the benefits that everyone talks about. That is the guaranteed return on FD. Whether you get an FD for one year, for 5 years or for 10 years, you know how much money you will get at the time of maturity. This is the reason why FD is considered a safe investment and in today’s time, even after having all the investment options, people get FD without worry.

Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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