Myths and facts of Fixed Deposits Benedict D'costa Written 4 year ago 0 0 1630 Myth 1: Only banks offer fixed deposits. Fact 1: Fixed deposits are offered by companies too. 0 0 0 Myth 2: More number of regular interest payments, more the returns. Fact 2: A cumulative FD with returns only on maturity would fetch you more. 0 0 0 Myth 3: All 5 year deposits fetch you a tax benefit. Fact 3: Only select 5 year fixed deposits fetch you a tax benefit. 0 0 0 Myth 4: TDS on FD cannot be avoided, as it has to be paid by all. Fact 4: Providing necessary documents could help avoid TDS. 0 0 0 Myth 5: FD interest earned need not be declared in your tax returns. Fact 5: Income earned on FD should be included in annual tax returns. 0 0 0 Myth 6: Premature withdrawal is the only way if I need money mid way. Fact 6: FDs have other options in times of contingencies. 0 0 0 Myth 7: In the long term, fixed deposit offers better returns than the stock market. Fact 7: The effective returns from an FD are lower than stock market. 0 0 0 For more info refer the link. 0 0 0
Myth 1: Only banks offer fixed deposits. Fact 1: Fixed deposits are offered by companies too.
Myth 2: More number of regular interest payments, more the returns. Fact 2: A cumulative FD with returns only on maturity would fetch you more.
Myth 3: All 5 year deposits fetch you a tax benefit. Fact 3: Only select 5 year fixed deposits fetch you a tax benefit.
Myth 4: TDS on FD cannot be avoided, as it has to be paid by all. Fact 4: Providing necessary documents could help avoid TDS.
Myth 5: FD interest earned need not be declared in your tax returns. Fact 5: Income earned on FD should be included in annual tax returns.
Myth 6: Premature withdrawal is the only way if I need money mid way. Fact 6: FDs have other options in times of contingencies.
Myth 7: In the long term, fixed deposit offers better returns than the stock market. Fact 7: The effective returns from an FD are lower than stock market.
For more info refer the link.