April 18, 2024
The Benefits of Investing in Tax-Saving Fixed Deposits
Tax-saving fixed deposits provide a reliable avenue for individuals to save on taxes while securing their funds. This comprehensive guide explores their features, eligibility, and benefits. With a mandatory 5-year lock-in period, tax-saving FDs offer deductions of up to Rs. 1.5 lakh under Section 80C. They assure stable returns, low risk, and stability, contrasting with market-linked options. Consider factors like risk, liquidity, and investment goals when comparing them to alternatives like ELSS, PPF, NSC, or SSY. The investment process is straightforward, requiring choosing an institution, opening an account, depositing funds, selecting a tenure, and claiming tax deductions.
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