Initially, the 5-year tax saving came under the tax exemption limit and Fixed Deposit. The banks have proposed to offer the tax exemption to 3-year FD as well. It is because the 3-year ELSS (Equity Linked Savings Scheme) offers a tax deduction of up to Rs. 1,50,000 every year as per the section 80C of the Income Tax Act, 1961.
It made the 5-year tax-saving FDs less lucrative for many investors. Therefore, the banks have now decided to introduce the 3-year tax saving fixed deposit. As a consequence, you might be able to avail the tax deduction of up to Rs. 1,50,000 on a tenor of 3 years as well.
Saving taxes help you to maximise the fixed deposit returns. However, the FD returns are directly linked with the FD interest rate associated with the FD plan. Bank FDs are not offering a high interest rate these days. As a result, even the tax-saving FDs might not fulfil your expectations in terms of interest earnings. Instead, you can invest your deposits in Bajaj Finance FD that is offering an interest rate of up to 7.05%. The high interest rates help you to keep up with the impact of increasing inflation rate. Also, the convenient investment and withdrawal options offered by this FD scheme help you to reach your investment goals without any hurdles. Some of the exceptional features of this FD scheme are highlighted below:
Laddering FDs seamlessly
Your FD investment becomes more liquid if you invest in multiple FDs of varying tenors. Also, you can compound the interest earnings by consolidating the FD returns in a cumulative FD for longer tenor. The FD interest rates also tend to increase with time. Therefore, laddering FDs gives you a higher chance of depositing your returns at a higher interest rate.
Don’t worry about the investment formalities associated with multiple FD accounts as Bajaj Finance FD allows you to deposit in multiple FDs with a single paycheque through its multi-deposit facility. Moreover, as Bajaj Finance offers a start-to-end online process to its customers, you don’t have to worry about the hassles of the investment process. The document verification process can be completed online through the CKYC procedure and the payment can be done online via net banking and UPI. Also, the online FD form allows you to register your details with ease.
Premature withdrawals
Premature withdrawals are not possible with tax-saving FDs. However, Bajaj Finance FD gives you the option of liquidating your deposits post 3-month completion from the deposit date.
Flexible investment & interest withdrawal options
For funding your short-term requirements you can choose a shorter tenor as a flexible tenor range from 12 to 60 months is available with Bajaj Finance FD. Also, you may choose to withdraw the interest earnings periodically after every year, six-months, 3-months, or 1 month by investing in Bajaj Finance non-cumulative FDs.
Along with all these benefits, you also get the security for your deposits as Bajaj Finance FD has been rated as a stable investment option by CRISIL and ICRA.
The banks have requested the government to allow them to include the 3-year FD in the tax-exemption limit. It means that the tax-saving FDs might be available even with a shorter tenor in the coming days. However, it might not make much of a difference in returns as the FD rates in India are already quite low. Invest in Bajaj Finance FD to earn high interest along with the stability of investment.
You also get the option of withdrawing the interest payouts periodically through the non-cumulative FD type. A flexible tenor range from 12 to 60 months and convenient online investment options is available. Along with that, the facility to invest in multiple FDs seamlessly makes Bajaj Finance FD a best option to maximise your earning potential through FDs.