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How to Calculate Recurring Deposit Interest Rate?
A recurring deposit is one of the best ways a small investor can invest funds and grow them. In a recurring deposit, a fixed amount of money is invested at a fixed duration for a fixed period of time. These installments all mature on the same date. Essentially, a recurring deposit is like having multiple fixed deposit investments, all of which mature on the same day.

How to Open a Recurring Deposit Account?
What is RD account is pretty clear but how to open recurring deposit account? For opening an RD account, the investor needs to visit the nearest bank or post office and fill out the application form. Certain basic documents shall be provided like identity documents, address proofs, bank detail etc.

Features and Benefits of Investing in Recurring Deposit
The best way to grow your corpus and begin investing is to put money into an investment regularly. Investments that call for regular installments not only help to build up savings, but they also enforce discipline among the investors. One of the most popular investments that meets the description above is a recurring deposit or RD. Read this handy guide to know what are the features and advantages of RD account.

Different Types of Recurring Deposit
Recurring Deposit (RD) is an easy and convenient way to start regular savings. In this, a fixed amount is deposited every month and earns interest at a predetermined rate. RD can be opened with any Bank, Post Office or NBFC by any person, a senior citizen, a minor above 10 years with a guardian, partnership firms, clubs, associations and NRIs. The rate of interest varies across financial institutions and the tenure ranges from 6 months to 10 years.

A Complete Guide to Recurring Deposit
Recurring Deposit (RD) is a common financial instrument in India since it is low-risk and offers moderate profits guaranteed to be paid out regularly. Customer options for investment quantity and term length are among its many desirable features.

RD vs FD - Difference Between Recurring Deposit and Fixed Deposit
Today, maintaining a bank account has become a norm. You need to provide your bank account number on various occasions; like receiving the salary from employer or subsidy from the government under a scheme. And most people open either fixed deposits or recurring deposits.

Premature Withdrawal of Fixed Deposit: Penalty Charges & Alternative Options
Most savers like to earn some income passively over and above their regular income flow. Fixed deposits offer them a diversification route for investing their savings. When a saver invests in a fixed deposit, they earn a guaranteed income over a fixed term of the investment. Fixed deposits, also known as term deposits, are suitable for both; working professionals and retired senior citizens. Fixed deposits range in tenor from 7 days and go all the way up to 10 years. The interest rate offered by different banks and financial institutions varies according to the tenor as well as the credit rating of the bank. Each bank has its own terms and conditions for offering fixed deposits to the members of the public.

NPS Returns - Everything You Need to Know
Every person wants to live with financial liberty without compromising their standard of living during the advancing years and it is possible with a pension scheme. With a mission to provide social security to every old age Indian citizen, the Government of India started the National Pension System that allows one to voluntarily invest, accumulate savings and get a lump sum amount in a form of regular income through an annuity plan on retirement.

Know Why do FD Interest Rates Changes Frequently
Fixed deposits are the favourite investment instruments for those who prefer assured returns and low-risk investments offered by banks. The interest rates in fixed deposits keep changing. We will help you understand why this happens and how this affect can your savings.

Kisan Vikas Patra (KVP) – All You Need To Know
Launched in 1988 by India Post, Kisan Vikas Patra is a savings certificate scheme to encourage small savings for securing the people’s future. As the name suggests it was designed to assist farmers who lacked access to traditional banking systems but there is no distinction made between investors.

Sukanya Samriddhi Yojana: Investment for Your Girl's Bright Future
As per an age-old saying, educating the girl child results in the progress of the country. Despite this, there are several sections in the society where the girl child is considered a burden and denied equal opportunities. To change this narrative and provide girls with equal standing, the Government of India introduced the Sukanya Samridhhi Yojana scheme. Let us understand how this scheme is the ideal investment for your daughter's bright future.

7 Best Investment Options in 2022
Investments allow you to draw a roadmap towards achieving your financial goals. They can help you build a corpus of funds for the future. With the COVID 19 pandemic, making investments that secure your future has become more important than ever.

Benefits of Life Insurance
Life insurance is a must in today’s world. Modern living is an expensive business, and people have to bear the burden of huge costs like children’s education, EMIs on home loans, healthcare and so on. So it is important for every earning member to have a life insurance policy to protect the financial interests of his or her family. There are many benefits of life insurance policy, which we will look at in this article.
Features of life insurance
Let’s look at the features and advantages of life insurance policy:
Protection: The first and foremost objective of a life insurance policy is to ensure the financial protection of your family, and this could include dependent parents, spouse, children or siblings. The demise of the sole earning member could put dependents to considerable hardship, especially since cost of living is very high these days. Life insurance gives you the assurance that your family members will be looked after in the event of your untimely demise.
Contract: Life insurance is basically a contract between the insurers and the individual who takes out the policy. You pay premiums every quarterly/half yearly/yearly to the company. In return, the insurer will give a lump sum to your family in the event of your demise.
Premiums: Premiums are paid quarterly / half yearly which you need to pay to get life insurance. The amount will vary from person to person, depending on the tenure of the policy, age of the policyholder, health and type of policy.
Affordable: Life insurance is an affordable way of ensuring the financial well-being of your family. Premiums on policies, particularly term insurance, are quite low and worth your while for the protection they offer.
Easy to buy: Buying insurance from company is quite easy. Insurance companies have specified persons, who will visit you at your home or office and help you with options and paperwork. You can also do it online at your convenience.
Tax benefits: Another one of the benefits of life insurance policy is that you can deduct the premiums you have paid from your taxable income. Under Section 80C of the Income Tax Act.
Savings: There are some life insurance products that combine savings and insurance. This can be a good way of saving for the future and protecting your family at the same time
Types of life insurance
Now that we’ve seen the essential features of life insurance policy, let’s look at the types:
Term insurance
This is the most basic, and most popular, of life insurance policies. You purchase a policy for a certain period for which you pay premiums. For example, if a policyholder wants a policy till the age of 60, he or she can take one. And if the policyholder passes away before 60, the nominee is paid the death benefits.
Unit-linked Insurance Plan
A Unit-Linked Insurance Plan (ULIP) combines investment with insurance. At the end of the policy, the policyholder gets a certain sum. This is unlike a term plan where the payout is made only on the death of the policyholder. Part of the premium is paid for life insurance, while the remainder is invested in either stocks or bonds, depending on the investor’s risk appetite and investment goals. The investments yield returns which are then given to the policyholder after the end of the policy period

What is Life Insurance ?
Life can be pretty uncertain. The death of a loved one is always painful, but it can have pretty serious financial consequences if it happens to be an earning member. Life insurance was devised to protect a family in the event of the death of an earning member. So let’s look at what is life insurance in some detail.
Life insurance definition is that it’s a contract between an individual and an insurer. The individual takes out an insurance policy and pays monthly or annual premiums. If the insured person meets with an untimely death, a lump sum is paid to his family, whether it’s parents, spouse or children.
Now that we have understood life insurance meaning, let’s look at the various types of products available to you.
Term Insurance
When you are finding out what is life insurance policy, you should also understand all the different options. Among them is term insurance. This plan is for a certain fixed period of time. For instance, many people choose to have a life insurance policy till the time they are earning, so that their families do not have to suffer loss of income. The lump sum or death benefit paid will ensure that the families will be able to continue the lifestyle they are accustomed to. Some policies cover permanent disability as well. You can take out a term insurance that lasts for as long as you wish – till you are 60 years old or even a hundred! Of course, you will have to pay higher premiums if you take longer policies.
Whole life insurance
Here’s another term you need to learn while learning what is life insurance policy, and that is whole life insurance. This will provide you with lifetime coverage. Of course, you will have to pay premiums for your entire life for this kind of policy.
Endowment policy
An endowment policy is one that combines insurance with investment. The policy is for a fixed period and the policy holder gets a certain amount at the end of it, if he or she survives that period. If the policyholder does not survive, the nominee will get the sum insured.
Unit Linked Insurance Plan
The Unit Linked Insurance Plan or ULIP is a type of endowment policy which combines life insurance with investment. A portion of the premium goes to cover life insurance, while the remainder is invested in either equity or fixed income instruments. The policyholder has the option of selecting the mix of instruments depending on his or her risk appetite and investment goals.
Benefits of life insurance
Now that we have seen what the meaning of life insurance is, let’s look at the benefits.
Protection for family
Obviously, the biggest advantage of life insurance is that it provides financial protection for your family in the event of an untimely death. Ideally, you should take a life cover that is 10 times your annual income to protect your family’s interests.
Tax benefits
There’s another reason to invest in life insurance, and that is tax benefits. Premiums paid are eligible for a reduction in taxable income under Section 80C of the Income Tax Act. However, the amount is limited to 10 percent of the sum assured.
Varied choices
There are many choices available, from plain term insurance to ULIPs that combine insurance and investment.
Savings
Policies like endowment or ULIPS will help you save for long periods.

Top 5 tax saving investment options
Paying taxes is a legal, ethical duty that every individual has to fulfil. The government uses your tax money towards the development and progress of the country. The government even offers some tax relief if one invests in certain instruments. However, most people tend not to follow a disciplined approach with regards to tax savings and investments. Either they begin investing towards the end of the financial year or they choose their investments to avail tax savings benefits. Both these methods of tax saving are wrong. The smart thing to do is to begin investing in the early months of the financial year. You can choose from the top 5 tax saving investment options to avail maximum benefits.
ELSS mutual funds
Specially designed for tax savings, Equity Linked Saving Scheme or ELSS mutual funds are considered one of the best tax saving investments. ELSS funds are market-linked products, which, though regarded as high-risk products, also offer higher returns. ELSS funds allow you to save taxes under Section 80C of the Income Tax Act of 1961. Also, ELSS funds are equity-linked products that come with a short lock-in period of 3 years. Moreover, ELSS investments can also be made through SIP or systematic investment plans, which allows you to spend a small, fixed, monthly amount as opposed to a lump-sum amount at one time.
Public Provident Fund
A favourite of the conservative investor, the PPF refers to the government issued, long-term savings scheme. Launched in 1968, the PPF tax saving scheme allows the investor to earn tax-free returns. Currently, you can earn 7.6% interest per annum on your PPF savings, and is especially beneficial for individuals of high-income slabs, paying 30.9% tax. Such individuals can earn taxable returns of approximately 11.04%. However, it is mandatory for one to deposit at least a minimum amount of ₹500 per annum, whereas the maximum savings per annum cannot exceed ₹1.5 lakhs. Also, the PPF scheme lasts for a minimum period of 15 years, and partial withdrawals can only be made after the 8th year of investment.
Unit Linked Insurance Plans
Regarded as hybrid products that provide both, protection and savings, Unit Linked Insurance Plans or ULIPs are regarded as great tax saving schemes, because they provide the investor with the much-needed life insurance policy, while also helping him invest in different market-linked assets, which help him meet his long-term goals. Most ULIPs come with 5 to 9 fund options, with variable asset allocation between equity and debt. While the duration of ULIPs is approximately 15-20 years, there is a minimum lock-in period of 5 years. Also, the fund value of an ongoing/matured policy is tax-free.
National Pension Scheme
One of the few tax savings schemes, which allow the investor to surpass the maximum ₹1 lakh limit of deduction, as set by Section 80C of the Income Tax Act; the National Pension Scheme or NPS is also ideal for tax saving investments. Under this scheme, the percentage of the investor’s basic salary (not exceeding 10%), as contributed by the employer towards the national pension scheme, is tax deductible. That said, the investor’s contribution towards NPS is still governed under Section 80 C, which allows you to surpass the ₹1 lakh limit.
Health insurance investments
Although not traditionally regarded as an investment for tax saving purposes, health insurance plans offer coverage that adds more value than any other form of investment. Apart from providing you security against unpredictable health scares, you also earn a tax deduction on health insurance plans, making them one of the best tax saving investments. One can avail a tax deduction of up to ₹15,000 on health insurance plans, where the upper limit on tax deduction for senior citizens is ₹20,000.
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7 PPF Account Benefits You Should know About
If you are looking for a low-risk investment option, a Public Provident Fund or PPF is the answer for you. It is a long-term investment tool that helps you save money as well as enjoy tax benefits. The returns on a PPF investment are high, too, making it one of the most popular investment products of India. PPF account and its benefits are endless but here are seven top benefits you should know about:
Low risk: One of the biggest Public Provident Fund benefits is that it is a safe investment product. Since PPF account is not linked to any markets and is backed by the Government of India, an important PPF account benefit is that it has little to no risk. The returns on your investment are guaranteed by the government, so you can invest in a PPF and relax. An additional PPF account benefit is that if, unfortunately, you default on your debts, the funds in your PPF account cannot be attached by a court order to pay off the debt.
Tax benefits: Any investment up to Rs 1.5 lakh in a year into a PPF account is eligible for tax benefits under section 80C of the Income Tax Act. So your investments will be deducted from your taxable income. Another Public Provident Fund tax benefit is that the interest you earn on your investment is completely tax free.
Nomination benefits: A PPF account can be opened by anybody, including minors. Minors can invest in a PPF account under the guidance of a legal guardian. An important public provident fund benefit is that the account comes with a nomination option. So, you can nominate a beneficiary to your account in the unfortunate case of your death.
No minimum limit: With a PPF account, there is no minimum limit on deposits. You can start as low as Rs 500 and go on increasing the funds up to Rs 1.50 Lakhs.
Good returns: While you have the liberty to invest as low as you want, your returns are guaranteed by the Government of India. One of the PPF account benefits is you can also decide if you want to invest monthly or at once. For Quarter Jan-Mar 2020, the interest rate on a PPF account is 7.9% compounded annually.
Liquidity and loan facilities: A PPF account goes a long way at your time of need. One of the PPF account benefit is that you are eligible to get a loan from the Bank against a PPF account you hold with them from the 3rd F.Y. till end of 6th FY. In case of emergency, you can also make partial withdrawals from your PPF account on completion of five years from the end of the year in which the account was opened.
Flexible tenure: A PPF benefits after 15 years when the account tenure is over. Upon maturity you can decide to withdraw the entire amount or further invest in the PPF for an additional five years by applying for account extension within one year of maturity.
These are the top benefits of a PPF account. There are more advantages such as a PPF account can be transferred from your bank to a post office or other bank near you. You can also have your PPF account moved to a different Bank of Baroda branch. To invest in a safe and reliable investment tool, click here.

All you need to know about the Senior Citizen Savings Scheme
Old age often brings uncertainty. Senior citizens face questions about their physical, emotional and financial health. The Government of India recognises the importance of financial security for the senior citizens and has started the Senior Citizen Savings Scheme (SCSS). Apart from providing financial security to senior citizens, it is one of the best tax saving options for senior citizens.
Who is eligible for the SCSS?
An Indian resident aged 60 years or above.
Indian resident above 55 years but below 60 years who have retired under the Voluntary Retirement Scheme rules or have appropriate superannuation. Under this, the SCSS account needs to be opened within a month of receipt of retirement benefits.
Retired defence personnel (excluding defence civilians) meeting particular terms and conditions can also avail the scheme on attaining the age of 50 years.
Non-Resident Indians, Person of Indian Origin, and members of a Hindu Undivided Family are not eligible for the SCSS.
Where can one avail the SCSS?
An eligible individual can avail the scheme through a private or public sector bank or the Indian Post Office. Since SCSS is a Central Government scheme, the rules and regulations of the scheme are standard across these institutions.
What is the interest rate on the SCSS?
The interest rate on the SCSS changes every quarter. The amount is calculated and credited every quarter, too. For the last financial quarter of 2019-20 i.e. January- March 2020, the interest rate is 8.6%.
What is the minimum and maximum deposit limits?
Individuals availing the SCSS can make lump sum deposits into their account. The minimum deposit stands at Rs.1000 while the maximum amount is Rs. 15, 00, 000. Any deposit greater than Rs.1000 will have to be made in multiples of Rs.1000.
When will the scheme mature?
The deposited amount matures 5 years after the date of account opening. The account holder can extend the account once, by a period of 3 years. However, the application for maturity extension needs to be made within one year of account maturity.
What is the interest on senior citizen scheme taxability?
There is SCSS tax exemption under Section 80C of the Income Tax Act, 1961. However, SCSS tax benefit is capped at Rs. 1, 50, 000.
In case of interest amounting to more than Rs. 50, 000, for a fiscal year, TDS is applicable starting FY 20-21.
What are the different benefits of the SCSS?
Being a government initiative, the depositor is protected by the facts associated with government schemes. This means, the depositor will not be affected by the economy.
The Senior Citizen Saving Scheme tax benefit serves as a good way of saving money as the SCSS tax is deductible under the Section 80C of the Income Tax Act, 1961.
In case of financial emergencies, the depositor can prematurely withdraw the amount with applicable penalties.
Now that you know how SCSS works, you can understand if it is the best financial option for you.

Baroda Tax Saving Term Deposit
Opening a term deposit to earn interest income is an excellent way to make use of the funds lying in your bank account. But by opting for a tax saving fixed deposit, you can also earn interest income and get a tax benefit. Bank of Baroda’s Baroda Tax Saving Term Deposit helps you to save tax while earning income
Tax saving FD features:
Eligibility
Only individuals and Hindu Undivided Families are allowed to open this tax saving fixed deposit. Deposits can be made in a single or joint name. As per Government of India guidelines, the Income Tax benefit is allowed to the first holder of this fixed deposit.
Amount of deposit
The minimum amount of deposit allowed is Rs. 100 and in multiples of Rs. 100. The maximum amount in a financial year is Rs. 1,50,000.
Tenure of deposit
The minimum lock in period for tax saving deposits is 60 months. The maximum tenure is 120 months.
Payment of interest
Interest is compounded quarterly in a tax saving FD. Interest is credited to the accounts at the end of the quarter. This is one of the best tax saving deposits features.
Premature closure
Premature closure of such deposits is not allowed until the maturity of the tax saving FD. This is allowed on customer’s request only after completion of 5 years at Bank’s discretion. The bank will pay interest at 1% below the tax saving FD interest rate in such cases. In case of death of depositor, premature withdrawal is allowed.
Auto renewal
Auto renewal of such deposits is allowed, but not under tax saving deposits scheme. The deposit will be renewed as a regular term deposit for a period of 1 year.
Tax saving FD benefits:
Tax savings
The principal amount invested as a tax saving FD is allowed as a deduction to the first holder of the FD under Section 80C of the Income Tax Act. The maximum deduction allowed in a financial year is Rs. 1,50,000.
No TDS if Form 15H/15G submitted
This FD is subject to TDS rules and regulations. The interest earned on this deposit is taxable. However, if your income is not liable to tax, you can submit a Form 15H/15G and the bank won’t deduct TDS on your interest.
Beneficial rate to senior citizen:
Senior citizens can get a better rate of interest on such deposits. Bank of Baroda pays 0.5% over and above the tax saving FD rates to senior citizens. This is available for deposits below Rs. 1 crore.
Nomination facility available
It is possible to set up nomination for the tax saving FD.
Branch transfer:
The tax saving FD can be transferred from one branch to another branch at the request of the customer. This can be done by submitting a written request to the branch where the customer has the tax saving FD.
Minor accounts for individuals
It is possible to open a tax saving fixed deposit for minors as well. These tax saving deposits can serve as important means of financial planning for them.
Bank of Baroda offers tax saving fixed deposits online and offline through their branches. Opening these is convenient and easy and can be done even in a matter of minutes.

Benefits & Features of Term Deposit
Earning income from your investments doesn’t have to be a complicated exercise. It is possible to earn a decent interest income out of the amount lying in your bank account by opening a term deposit account. A term deposit is any amount kept with the bank for a fixed period of time. With a Bank of Baroda fixed term deposit, you can open a term deposit bank account for a period as short as 7 days and earn income.
Benefits of Term Deposit:
Easy and convenient:
Opening a bank term deposit is very convenient. It can be opened online through NetBanking, or via the mobile banking application. Forms for a term deposit are available online and in branches.
Competitive interest rates:
Bank of Baroda offers competitive interest rates on term deposit schemes. The interest rates differ based on the period of the fixed deposit.
Flexible periods:
Bank of Baroda offers different options for fixed term deposits. The periods can be as short as 7 days or go up to 10 years.
Loan/Overdraft facility available:
Bank of Baroda term deposit customers can avail a loan/overdraft facility against their time deposit. The loan amount is available up to 95% of the fixed deposit amount. The rate of interest on these loans is 1.5% to 1.75% over and above the fixed deposit rate.
Create investments:
Term deposits can be used to create investments in the name of children and senior citizens.
Nomination facility:
You can use the nomination facility to nominate different people for different fixed deposits. Nomination can be done online and in the form as well.
Premature withdrawal allowed:
Each term deposit opening form has an option, callable or non callable. If the callable option is selected, it allows you to withdraw your term deposit prematurely. The rate of interest paid will be 1% less than the time deposit rate of interest.
Features of Term Deposit Scheme:
Fixed Term Investments:
Each bank term deposit is kept for the fixed duration that is selected. This amount is blocked for that duration and unless the callable option is chosen, the amount cannot be withdrawn before maturity.
Earn Interest half yearly:
Interest is earned half yearly compounded quarterly on these deposits. It is credited to the fixed deposit account on maturity. Monthly or Quarterly payment of interest in linked SB account is also available in selective schemes.
Beneficial rate for senior citizens:
Senior citizens get a higher rate of interest on these deposits. Bank of Baroda gives 0.5% extra to senior citizens for their term deposits.
No TDS if interest amount is less than Rs. 10,000/-
The limit for deducting TDS is Rs. 10,000. If your income is below the no tax limit, you can fill Form 15G/15H with the bank and TDS won’t be deducted.
Auto renewal of fixed deposit:
Instructions can be given to the bank to auto renew the term deposit once it matures. The principal and interest amount will be renewed automatically on maturity.
Minimum deposit amount:
The minimum deposit amount is Rs. 1,000 and can be increased in multiples of Rs. 100.
Opening a fixed deposit with Bank of Baroda is really easy and simple. It can be done online within a matter of minutes and opening it in a branch is convenient as well.

Difference between Fixed and Recurring deposits
Understanding the differences between fixed deposits and recurring deposits
The process of wealth creation requires discipline. Money must be put away systematically, over a period of time for wealth to grow. Whether you choose to invest in the stock market, commodities market, mutual funds or even opt for conservative methods of savings such as fixed deposits and recurring deposits; each way of savings comes with its own set of features and benefits. Most people begin with small monthly savings in the form of a recurring deposit, which they convert into a fixed deposit upon maturity. But this is just one way to go about it. In this article, we shall highlight the key differences between fixed deposit and recurring deposits. However, to do so, we need to understand what a fixed and a recurring deposit actually is.
Recurring deposit v/s fixed deposit
Fixed deposits or FDs (also so known as term deposits) refer to the financial instruments provided by banks through which one can lock away a sum of money for a specific duration and earn a monthly, quarterly, half-yearly, annual or cumulative interest at the end of the term. As the term ‘fixed’ suggests, one cannot withdraw money from a FD until the end of the term. Should you choose to ‘break’ your FD prematurely, you have to pay a penalty to the bank. A recurring deposit, on the other hand, refers to a disciplined way of putting away a fixed sum of money in an account every month. One needs to open a special recurring deposit account and can earn the same interest rate as offered on FDs. RDs are a great way to put away savings every month until a more substantial amount of money is accrued, which can then be put away as an FD.
FDs and RDs – key differences
Let us look at the main differences between FDs and RDS
The purpose of the deposit: Investors can put away their idle savings in an FD and earn a specific rate of interest, which is higher than the interest accrued when the money is sitting idle in the savings account. RDs, on the other hand, allow one to inculcate a disciplined habit of saving a fixed sum of money every month.
The duration of the deposit: You can open a fixed deposit for a minimum duration of 7 days, whereas the maximum duration of the deposit is about 10 years. On the other hand, the minimum duration for the RD is six months, whereas the maximum deposit tenure is 10 years.
Renewals and withdrawals: With regards to fixed deposits; one can roll over a deposit for another term, which may be different from the original term chosen. If you do not opt to withdraw an FD, the bank can auto-renew the deposit, but the interest rate may be lower, higher or the same; depending upon the prevailing rate of interest as offered by the bank. However, if you choose to withdraw the deposit before maturity, you have to pay a certain penalty. With regards to renewals and withdrawals of RDs, it is possible for one to close an RD before the chosen term and reinvest it into a term deposit; the account holder can earn an interest rate, with a 1% reduction as penalty. Also, it is not possible to make partial RD withdrawals. However, should you need money urgently; you can take a loan against your RD instead of breaking the deposit and withdrawing the cash.
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Everything you need to know about recurring deposits!
Looking for an easy saving tool? A recurring deposit (RD) may be the answer to your question. So, what is recurring deposit? An RD account is one where you invest a specific amount of money every month.
But what is RD account for, you ask? Well, you earn an interest on your saving. It is a simple investment tool that helps you learn the discipline of investing money every month as well as earn interest on your investments.
Almost all banks offer RD accounts. The interest offered is different for every bank. It usually lies in the range of 5 to 8 % per annum.
What are the features of an RD account?
There are several aspects to an RD account. Some of the main features are:
Minimum saving: You can start with a minimum saving of Rs10. It is a saving tool for all classes. An RD account gives you the chance to start saving low and grow eventually.
Tenure: The minimum period for which you can invest in an RD account is six months. You can invest for up to 10 years.
Interest rate: The interest earned on your RD account is comparable to other investment tools such as fixed deposits.
Discipline: RD accounts help you develop the habit of saving on a regular basis.
Loan against RD: You can avail a loan against your Recurring Deposit account, which acts as a collateral.
Withdrawal: You can only withdraw at the end of the tenure. While premature withdrawals are not allowed, some banks may allow you to withdraw prematurely against a penalty.
What are the benefits of RD account?
There are various advantages of an RD account. Let’s look at some of these advantages:
High returns: Most banks offer an interest on their RD account which is at par with other savings schemes such as the fixed deposit. Some even offer higher interest rates than savings account. You stand to earn high returns even by making small investments in the beginning.
Start low: You can start an RD with as much as Rs10. It gives you the freedom to start with small investments. So, what is RD account for? You make small investments every month and earn interest.
Simple process: Starting an RD account is very easy , especially if you have an existing savings account. In that case all you have to do is link the RD account to 6the savings account.
Good for short-term goals: You can start saving in an RD to fulfil your short-term expenses. It also helps you inculcate the habit of saving money regularly.
Save in piecemeal: An RD account lets you make small deposits at regular intervals, unlike other savings schemes that require you to deposit large amounts in a go. At the same time, the interest is at par with such schemes.
What is RD account if not an ideal saving tool for starters?
If you are new to investments and want to develop a habit of saving money, RD account is the right option for you. It is also ideal for people with low incomes who want to save money for achieving short-term goals.

Everything you needed to know about tds on fd rates
A bank or financial institution is required to deduct TDS (tax deducted at source) at 10% from the interest income you earn on your fixed deposits and remit it to the central government, if the interest income exceeds Rs.10,000 in a financial year..
TDS is tax deducted at source. It is that part of your income that is directly paid out in the form of tax by the deducting agency, like your employer or your bank, before passing on the rest of the income in your hands.
In the Union Budget 2018, the Finance Ministry had increased the interest income threshold to Rs.50,000 for senior citizens. Only on exceeding Rs.50,000 as interest income, can the bank deduct TDS for senior citizens or those 60 years of age and above, under the new Section 80TTB of Income Tax Act.
When you have more than one deposit in different branches of the same bank, then the interest income from all the FDs is added up and 10% of this cumulative value is deducted as TDS.
What if a depositor’s annual income is below taxable income bracket?
Now, if a depositor’s annual income is less than Rs.2.5 lakh a year, and Rs.3 lakh in case of senior citizens, then the depositor is liable to pay no taxes. Under those circumstances, the depositor must submit Form 15 G or 15H right at the beginning of the year to prevent TDS from getting deducted from their interest income. Failing which, the depositor will have to file for refund at the end of the year, which can be tedious.
What is Form 15G and 15H?
Form 15 G
When a depositor’s annual income is less than Rs.2.5 lakh (or Rs.3 lakh for senior citizens) and tax due is nil, then the depositor must file Form 15G or Form 15H with the bank requesting the bank to not deduct TDS on interest income from FDs exceeding Rs.40,000 or, in the case of senior citizens, Rs.50,000.
Form 15H
Form 15H is similar to Form 15G, except that Form 15H is exclusively for senior citizens who are 60 years and above in age.
Conditions For Form 15H
The depositor should be 60 or above of age
Annual income should be less than Rs.3 lakh in case of senior citizens and Rs. 5 lakh for super senior citizens.
Should be a resident Indian.
Some examples of Form 15G/H
Mrs. Dsouza is 35 years old. Her annual income is Rs.2,35,000. The interest receipts on her FDs are Rs.50,000. What should Mrs. Dsouza do?
Mrs. Dsouza needs to submit Form 15G because her annual income is lower than Rs.2.5 lakh which is the minimum taxable income threshold. Since, her interest income is Rs.50,000, which is Rs.10,000 higher than the TDS exemption limit, the bank will deduct TDS at 10% if she does not file proof of her zero tax dues through Form 15G. So to prevent her loss of interest income by TDS deduction, she must file the form 15G before her first interest income is received.
Mr. Raina is 66 years old. His annual income is Rs.2,20,000 and his interest income is Rs. 60,000. What should Mr. Raina Do?
The minimum taxable income limit for Mr. Raina’s age group is Rs.3 lakh. Since his annual income is less than that, it means his taxable income is zero. So he should file Form 15H with his bank to prevent TDS deduction on his interest income which is higher than the exemption limit of Rs.50,000 for senior citizens.
In the above example, what if Mr. Raina’s interest income is Rs. 30,000 from his FD?
Since, his interest income is less than Rs.50,000 exceeding which, the bank comes into the picture and deducts TDS at 10%, Mr. Raina does not have to do anything, given that his annual income is also below minimum taxable income limit.
Please remember
You must submit Form 15G or Form 15H along with a valid PAN, failing which the TDS would be deducted at 20%.
Form 15G/H has to be submitted to all the bank branches where you are receiving interest income from.
If you have multiple FDs and interest income from even a single branch exceeds Rs.10,000 in a financial year, then you must file Form 15G/H to prevent TDS deduction.

Features & Benefits Flexible Recurring Deposit Scheme
Flexible Recurring Deposit Scheme (Yatha Shakti Jama Yojana)
Bank of Baroda offers its customers a unique scheme that makes it possible for you to save money flexibly, month after month. You can avail the attractive Yatha Shakti Jama Yojana - a flexible recurring deposit scheme which comes with a host of benefits and salient features. Under the flexi recurring deposit scheme, depositors may choose a small core amount to open their deposit and increase the core amount subsequently, up to three times.
Features of the Flexible Recurring Deposit Scheme
Opening the flexi RD
The flexi RD can be opened with a small initial amount of Rs.100 only
Amount of deposit
Depositors may choose their initial amounts in multiples of Rs 100, up-to a maximum amount of ₹10,000. You may choose to deposit either your core amount or up-to 3 times your core amount. Core amount contributions are mandatory in this scheme.
Tenure of deposit
The tenure of the recurring deposit schemes range from 12 months to 120 months.
Interest payment
Interest on the flexi RD will be paid and credited on a half yearly basis in the months of September and March. The interest paid is calculated on daily balances, with half yearly compounding of interest.
Benefits of the Flexible Recurring Deposit Scheme
Additional interest rate benefits
Senior citizens with deposits below ₹1 crore are eligible for 0.50% additional interest. Staff and ex-staff members of Bank of Baroda are also provided with additional interest. Ex-staff members who are senior citizens can avail both bonus interest rates.
Nomination facility
Nomination facility is also offered to flexi RD holders.
Premature withdrawal facility
Interest is paid after deducting a penalty of 1% from applicable rates or contracted rates, whichever is lower in only those cases that are subject to charging penalty.
Loan and overdraft facility
You may avail a loan or overdraft facility against the flexi RD of up to 95% of the outstanding balance in your account at interest rates as per Bank of Baroda guidelines.
No penalty
No penalties are levied for delayed payments of monthly instalments.
TDS
No TDS will be deducted for persons submitting forms 15G/15H as applicable

Fixed Deposits- Features, Benefits, Disadvantages
A fixed deposit is one of the most popular investment options in India. Several people consider fixed deposits as the best investment option and invest a significant portion of their savings in this instrument. But what is a fixed deposit?
A fixed deposit is a type of deposit in which a sum of money is locked for a fixed period of time. However, the tenure for the fixed deposit is decided by the person who invests his funds. This tenure could be anywhere from a few days to several years. In return for locking in these funds, fixed deposits pay the depositor a fixed rate of interest. All banks offer fixed deposits at different rates. Opening a fixed deposit is extremely simple and can be done both online and offline. To understand whether investing in a fixed deposit is the best option, we need to look at the advantages and disadvantages of fixed deposit account.
Let us examine the fixed deposit advantages and disadvantages.
Advantages of Fixed Deposit:
Assured rate of return:
The major reason why people prefer investing their funds in a fixed deposit is the assured rate of return. Once you invest your funds in a fixed deposit account, you can be guaranteed of receiving the stated rate of return. Banks publish the fixed deposit rate of interest on their website and in bank branches which makes it easy for a customer to ascertain how much return he will get. Banks also have a fixed deposit interest calculator on their websites where a customer can calculate the interest he will receive on investing a particular sum of money for a particular period of time.
Tax threshold for interest:
Banks are not mandated to deduct tax on any interest until it crosses Rs. 10,000. This means unless the total interest earned by a customer on different fixed deposits totals Rs. 10,000, the bank will not deduct any tax. This provides comfort to small deposit holders.
Flexible tenure:
The tenure for a fixed deposit is flexible and depends on the deposit holder. Each bank has their own minimum tenure rules however, the final decision can be taken by the deposit holder. It is also possible to decide whether to redeem the fixed deposit or to extend it for the same period of time.
Easy liquidation:
It is relatively easy to liquidate a fixed deposit. For FDs booked online, they can be liquidated online via net banking as well. Otherwise, most bank branches have a form to liquidate the FD.
Loans against fixed deposit:
An FD is a dependable instrument to keep in case of financial emergencies. Taking a loan against a fixed deposit is very easy. You can take a loan up to 95% of the fixed deposit amount depending on the bank. This makes it a dependable investment.
Disadvantages of Fixed Deposit:
Reducing interest rates:
Even though fixed deposits have a lot of advantages, the interest rates do not move in line with inflation. This means in some cases, they may actually earn less than the inflation rate. The interest rates for fixed deposits have been falling in recent times which has reduced the attractiveness of this investment.
Locked in funds:
Fixed deposits lock in your funds for a fixed duration. These funds are not available for you to use unless you withdraw the funds prematurely. Fixed deposits are not at all liquid and cannot be converted into cash easily.
Penalties on withdrawal:
Banks charge penalty to the depositors who withdraw their fixed deposits prematurely. This penalty is in the form of a reduced rate of interest.
No tax benefit:
The interest earned on fixed deposit is added to the taxable income of the deposit holder. There is no deduction on any interest earned. However, senior citizens get a deduction up to Rs. 50,000 on interest.
Fixed interest rate:
The rate of interest on a fixed deposit remains the same for the entire duration of the fixed deposit. Even if the rates increase, the bank does not pay additional interest to the deposit holder.
After looking at the advantages and disadvantages of a fixed deposit account, it is clear that this is an instrument for people who do not have much of a risk appetite. If you’re a person who likes to see fixed income in his account, then this is the instrument for you. The earnings from this form of investment are limited. However, banks have a sweep in facility where excess funds from a savings account can be diverted to a fixed deposit until the customer needs these funds. By enabling this feature, you can increase the returns from your fixed deposit account.

How does Fixed Deposit Work
A fixed deposit is one of the most popular investment avenues in India, particularly among risk-averse middle class investors. How does fixed deposit work? Let’s take a look.
How does a fixed deposit account work?
For that we have to understand that there are two parties involved here. One is the bank and the other is the customer. Banks need money, which they lend to borrowers from whom they charge interest. Banks obtain that money from its customers mainly through various accounts – current, savings etc.
One way of obtaining that money is through fixed deposits for which they offer certain rates of interest. The funds that they get is lent to borrowers for a slightly higher rate of interest. The difference between the interest rate on FDs and on loans is called the spread, which is the bank’s earnings.
How does fixed deposit work in India? If you have some spare cash and want to invest in fixed deposits, there are many options available for you. You can deposit money for periods ranging from a few days to a few years. Of course, the interest rates for shorter periods will be lower than those offered on fixed deposits of longer maturities. For example, if you want an FD for 30 days, the interest rate could be around 6 percent. If the deposit is for a year, the interest rate could be 7 percent.
The interest rates charged by different banks vary, so you might have to do a comparison to find the best rate. However, differences tend to be small. Smaller banks, like cooperative banks, may offer higher rates of interest than the large banks. However, you must remember that there is a direct correlation between risk and returns. High interest rates will always mean a higher level of risk.
Whether or not you choose to invest in a fixed deposit depends on how much returns you are satisfied with, and the amount of risk you are prepared to bear. Generally, returns on fixed deposits are lower than other investment avenues like equity, but the risks too are lower.
Advantages of fixed deposits
Hedge against inflation
Remember, the real value of your capital is being constantly eroded by inflation. If you have Rs 1 lakh and the inflation rate is 5 percent, the value of that Rs 1 lakh will become Rs 95,000 the next year. So depositing that cash in a fixed deposit will preserve the value of that cash.
Less risk
Fixed deposits are less risky than other investment avenues like equity. Moreover the Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the Reserve Bank of India, insures FDs up to Rs 1 lakh (principal and interest), so your money is perfectly safe up to Rs 1 lakh.
Assured returns
Interest rates are fixed beforehand, so you don’t have to worry about what you’ll get when the FD matures
Now that we have explained what is a fixed deposit and how does it work, you can go ahead and open one. The process is straightforward and simple. If you have a savings account with your bank, you can open an FD with just a few clicks of your mouse. You can open an FD in other banks as well, but you have to open a savings account first. FDs are a good investment, and should be part of any investor’s portfolio.

How to open a fixed deposit account
Fixed deposits and the importance of having one
Time deposits or Term deposits are most commonly known as fixed deposits. Apart from mobilising funds from demand deposits like savings and current accounts, banks also resort to fixed deposits to raise funds. Fixed deposit, like the word suggests, have a fixed duration.
How to open a fixed deposit account
Now that we know what a fixed deposit (FD) is, let us see how we can open a fixed deposit account.
Fixed deposit accounts can be opened in the same way a savings account is opened.
One can either go to a branch of the bank and open a fixed deposit account after choosing the tenure or the person can use internet banking to open an account.
Banks these days offer the flexibility of automatically transferring money from the savings account to the fixed deposit account above a threshold limit as prescribed by the customer. It is called auto-sweep facility.
The key variable to choose in a fixed deposit account is the tenure. The interest rate is fixed by the bank.
Fixed deposits can be opened in banks where one does not have an account. However, here the documentation process is long, and one will need to provide all the details needed in a Know-Your-Customer (KYC) documentation.
There is no restriction in the number of fixed deposit accounts one can open.
Fixed deposits offer better interest rates as compared to a savings account but do not offer the customer the flexibility of withdrawing money as and when they want.
Duration of fixed deposits can vary from a few days to longer-term deposits which can go on for years. Interest changes with time. Higher the time period for which the money will be locked in higher will be the interest rates.
For example, a deposit for 7 days is generally given an interest of 3.5 per cent annualised while that for a year maybe around 6.5 per cent. The shorter period deposits will be more aligned to the savings deposits while the longer term deposits will be aligned to the bond market rates. The maximum period for which fixed deposits are offered is 10 years.
Banks offer higher interest rates for Fixed deposits to compensate for liquidity. Also, they seek longer-term deposits in order to lend the money to projects which have a long gestation period.
The longer-term deposits are more aligned to the bond markets where they compete with corporate and Non-Banking Finance Companies (NBFCs) for money.
Fixed deposits in the form of bonds or debentures are offered by corporate and NBFCs. Bond markets are increasingly getting a popular source of funds for corporate also as they do not have to go through the lengthy process of raising money through the banking system.
Mutual funds, especially the debt funds invest the money raised through the public in bonds. Thus fixed deposit rates of the banks have to be attractive enough to prevent depositors from running to mutual funds or the bonds offered by NBFCs.
In order to make the deal more attractive banks have over the years started offering frills with a Fixed Deposits account such as overdraft facility, zero cost credit cards, nomination facility, safe deposit lockers, internet banking among others.
Fixed Deposits earn higher interest than a Savings Account because the former gives them leg room to lend to people who need the money for roughly the same time limit. A one-year fixed deposit in a bank can allow the bank to lend money to a person who requires a personal loan for one-year period.

PPF Tax Benefits & Features you must Know About
A popular investment and tax saving instrument for Indians since it was first introduced in 1968 by the Central Government, the Public Provident Fund is a great tool to boost small savings by every individual across India. One of the biggest reasons thousands open opt for PPF is the PPF tax benefits.
The following are the features of a PPF for your comprehensive understanding:
Tenure
The PPF is a long-term investment with a minimum tenure of 15 years. PPF holder can extend the tenure by a period of 5 years every time.
Rate of interest
The rate of interest is determined by the Ministry of Finance every quarter. The compound interest is paid out at the end of the financial year i.e. on March 31. The interest is determined based on the balance between the closing of the 5th day and last day of each month.
Limits on investment
PPF is appealing to every section of society with different income levels. The minimum deposit every financial year is Rs.500 while the maximum amount is Rs.1, 50, 000. You can deposit the amount in lumpsum or in instalments in a financial year.
Opening Balance
You need to have at least Rs.500 to begin with when you open the account. Maximum amount upto Rs.1,50,000 can be invested every year and is eligible for exemption under section 80C of IT Act.
Mode of deposit
There is limited restriction on how you can deposit money into your PPF account. You can transfer funds online, deposit cash, cheque or pay through a demand draft.
Frequency of deposit
The account holder needs to make a deposit at least once a year for 15 years.
Nomination
The account holder may nominate one or more people (maximum 4) who will receive the amount in the PPF in case of the account holder’s death. The amount that each nominee will receive can also be determined by the account holder during nomination.
Joint account
One individual can hold only one PPF account at any given point of time. No joint account is allowed.
Risk-free
The PPF is backed by the government and offers complete protection of investment regardless of market conditions.
Loan
You are eligible to take loan against your PPF provided it is between its 3rd-6th Financial year. The loan amount is capped at 25% of the balance in the 2nd year preceding the year in which you applied for the loan.
Eligibility
You need to be an Indian citizen residing in India. Members of HUF cannot open a PPF account. One eligible individual can hold only one PPF account. However, an individual can hold another PPF account on behalf of a minor.
Can one withdraw from their PPF before maturity?
A PPF account can be closed only when it completes 15 years. However, if the account holder needs to withdraw money from their PPF account due to a financial emergency, they can do so only from the 7th year onwards. These withdrawals can be made only once in a fiscal year.
What are the tax benefits offered with a Public Provident Fund? Is PPF maturity taxable?
A PPF is categorised as EEE which stands for Exempt-Exempt-Exempt. This means that the principal amount can be deducted under Section 80C of the Income Tax Act, 1961.
Furthermore, there is no PPF maturity tax i.e. the account holder does not have to pay tax on the interest accumulated on maturity of the PPF or the total amount post maturity.
A simple enough tax saving instrument with good rate of interest, you can start a PPF for yourself or your child with Bank of Baroda.

Reasons Why You Need To Have a Fixed Deposit
Since the generation of our fathers and grandfathers, fixed deposits remained a preferred instrument to put our hard earned savings in. We would put away a lump sum in a fixed deposit offering an attractive and steady interest rate. Why we preferred and continue to prefer fixed deposits is because of the fixed interest rate which does not go up and down with changes in lending rates. FDs were considered safe and they gave us stable returns. Now you can even open an FD online without even having to go to the bank.
FDs are good for people who have extra lumpsum, which they don't need to use at the time.
FDs ensure capital protection and uniform flow of income. If you are risk-averse and do not want equity exposure, FD is for you
A Fixed Deposits is a saving instrument where you put a lump sum amount for a fixed period of time and earn a fixed rate of interest. On maturity you earn the principal invested along with the interest, which you can always reinvest! They are also called term deposits because you park money in them for a given tenure. Here are the key features of a Fixed Deposit:
Fixed rate of interest
Fixed deposits come with a fixed rate of interest when you open one. The rates of interest themselves keep getting revised from time to time, based on key lending rates. But you only get the rate of interest you locked into while booking the fixed deposit. Bank of Baroda, one among the oldest and largest banks of India, offers one of the highest deposit rates in the country, and has been a preferred bank to open FDs with, for many years now, given its security, pedigree and attractive rate of interest.
It is secure
Unlike financial instruments that depend on market movements, which are volatile, for you to profit from, fixed deposits are secure instruments since they give steady returns. For example, if the interest rates were to fall, you will still earn the rate of interest you were promised while booking the FD.
A bank’s market value, legacy and history also give it immense credibility and a sense of security to the depositors like the millions of depositors of Bank of Baroda who have parked their hard earned income and salaries in the Bank of Baroda deposit schemes for over a century now.
Return on investment
How much your returns on investment are on an FD will really depend on the interest rate and tenure of the FD you choose. You are likely to get more from investing in a long term FD but short term FD will give you more liquidity, depending on whether if your financial requirement is more immediate. You can also pick various options in FDs where you can either reinvest the proceeds you get from an FD or you can request for pay outs on a quarterly or monthly basis. In both the cases, the returns will vary
Flexible Tenures
Bank of Baroda offers flexible tenures. It offers both short term and long term FDs for the benefit of the depositors.
Lending facility against FDs
Some banks also offer loans against FDs, so you do not have to break or liquidate your FD before maturity to get cash. Also, you can continue to earn the interest on the FDs. These loans are in the form of an overdraft (OD).

Tax Benefits Under NPS One Can Avail of
National Pension Scheme or NPS is a central government scheme for all those who want to save for their retirement days early on. So if your retirement is still some time to go and you are already planning to make arrangement for your golden days, the NPS is your ticket to achieving these goals. There are several benefits of the NPS scheme as it is a low risk scheme. The tax benefits that come with the NPS make it a great choice of investment. Here are some of the NPS tax benefits:
NPS tax benefit for individuals:
Any person subscribing to the NPS is eligible for a tax deduction of 10 % of his/ her gross income up to Rs1.5lakh under the section 80 CCD (1) of the Income Tax Act. In an exclusive tax saving benefit, you are also eligible for an additional deduction for investment up to Rs50,000 in NPS (Tier I account) under subsection 80CCD (1B). This exclusive benefit is over and above the deduction of up to Rs 1.5 lakh under section 80C. NPS tax benefits for individuals under corporate sector
You are eligible for an additional tax benefit if you have subscribed to NPS scheme under the corporate sector. This deduction is under the section 80CCD (2). Under this the employer’s NPS contribution up to 10% of salary (Basic + DA) is deductible from taxable income, without any monetary limit.
NPS tax benefits for corporates
Corporates making contribution towards employee’s NPS is deducted as business expense from their profit and loss account. So the employer’s contribution towards NPS up to 10% of salary (Basic + DA) can be deducted as NPS tax exemption.
NPS tax benefits on partial withdrawal
National pension scheme tax benefits is that you can partially withdraw funds from your NPS tier-I account .This benefit is available for specified purposes only. The amount withdrawn up to 25% of your contribution is exempt from tax.
NPS tax benefit on annuity purchase
If you invest funds in annuity, it is completely exempt from tax. Only the income from annuity received in the subsequent years is taxable.
NPS tax benefit on lump sum withdrawal
When you are 60 years old, if you withdraw the funds in lumpsum, maximum 60% of the corpus can be withdrawn from which 40% of the corpus is exempted from tax.
One of the biggest selling points for NPS is the additional tax benefits attached to the scheme. If you have a low appetite for risk and want to plan for your retirement days, invest in an NPS now. Click here to invest in an NPS tax saving scheme.

What are the Benefits of Recurring Deposits
There are many benefits of recurring deposit.
Small installments
Most banks have a very low amount of monthly installment. Some banks even have recurring deposit schemes where the installment frequency is quarterly or half yearly. This ensures people with low amount of savings can also invest in such schemes.
Goal based saving
One of the best benefits of recurring deposit is that it helps with goal based savings. Regular monthly installments earn interest and work towards building a corpus for the short term. Installments can be planned so that a required corpus is built up for use in the future. To check the maturity amount for a given installment amount, you can use a recurring deposit interest calculator which is available for free on major bank websites. By using this calculator, you can plan your finances so that your monthly investments build up to the amount you need.
High rate of interest
Recurring deposits earn the same rate of interest as fixed deposits. Thus, these can be used effectively as a tool to earn income. Interest is compounded quarterly on the investments made which helps the investor to earn on interest as well as the principal. Senior citizens can get a higher rate of interest on their recurring deposits.
Saving for minors
Most banks allow recurring deposits to be opened by minors with a joint holding by the parent or the legal guardian. This helps to build investments for the minor’s use.
Disciplined investing
A recurring deposit is an excellent way of ensuring disciplined investing. Since the installment amount for a recurring deposit has to be paid on the same day every month, the investor is forced to put aside that amount. It inculcates discipline and a savings habit to the extent of the installment amount.
Loan facility
Most banks offer a loan facility on the recurring deposit amount. This loan is given up to 95% of the recurring deposit amount. This can be resorted to in case of any emergency.
Easy to open
Opening a recurring deposit is extremely simple. You do not need to have a savings bank account in that particular bank to open a recurring deposit account. Opening a recurring deposit account can be done online via net banking of the particular bank. In case it is not possible to open it online, you can visit the bank branch, fill up the recurring deposit form and submit the required documents along with a cheque for the installment amount.
TDS limits
The recurring deposit benefits to tax are available when it comes to TDS. Banks deduct tax on the recurring deposit interest only when it exceeds Rs. 10,000 in a particular year. If the total interest amount does not exceed Rs. 10,000, then they do not deduct tax. Also, no tax is deducted if the depositor submits Form 15G/15H certifying that their income is below the no tax limit.
Nomination facility
Recurring deposits come with a nomination facility. This means the recurring deposit amount will be paid to the nominee in case of death of the deposit holder. Setting up nomination for a recurring deposit is very simple. This detail can be provided while opening the recurring deposit account.
Deduction on interest earned
While the interest earned on a recurring deposit is chargeable to tax, interest earned up to Rs. 50,000 is deductible under Section 80TTB of the Income Tax Act for senior citizens. This provision ensures a higher amount of income remains in their hands.
A recurring deposit is an excellent investment option for people who have small savings and want to build up a corpus for specific goals

What is Forex Card?
Planning to go on a trip abroad? Don’t forget to carry a forex card for a hassle-free trip. So, what is forex card?
A forex card is the safest way of carrying foreign currency for paying for expenses when you are travelling abroad. It is a prepaid card which you can load with a specified amount in a foreign currency. So, when you are travelling overseas, you can swipe this forex card to pay for your expenses, instead of carrying cash around. It works as a debit card. You can also withdraw cash with your forex card from an ATM.
What is forex card and its types?
A forex card is a type of prepaid card in which you can load money in foreign currency. It is globally accepted, and you can either pay for your expenses using your forex card or withdraw cash in foreign currency at an ATM.
Forex cards are largely divided into two types – single currency cards and multicurrency cards.
Single currency forex card: A single currency forex card can be loaded with a particular foreign currency. You can use load this card with a currency when travelling to a particular country.
Multi-currency forex card: As the name suggests, you can preload this card with multiple currencies. Check with your bank about the currencies that you can load onto your multi-currency forex card.
What is the use of forex card?
A forex card is your best friend when you are travelling in a foreign country. There are several benefits of carrying a forex card over travelling with wads of cash or looking for places to convert currencies.
With a forex card, you are likely to get a better conversion rate. Buying a forex card from a bank is a cheaper solution to currency converted.
Most banks offer a range of forex cards that can suit your needs. You need not necessarily have an existing account with the bank to be able to purchase a forex card.
You can avail of many deals, offers and discounts that most banks offer when you purchase a forex card.
A forex card is much safer than carrying cash around. It comes with the chip and pin technology, which adds another layer of safety. Further, if you lose your forex card, you can get your card hot listed immediately to avoid any misuse of the card.
If your card has a remaining balance when you are back home from travel, you can encash the amount at the existing exchange rates. To avoid maintenance charges, you can get your card blocked until your next visit overseas.
How forex cards work?
What is forex card if not a debit/ credit card for your overseas travels. They are globally accepted and are a safer alternative to cash. But how does a forex card work?
It works exactly like a credit or debit card. You apply for a card. Once your application is approved, you receive the card with a pin. Change the pin. Use internet banking to load the card with your desired amount and currency. Now you are good to go.
When abroad, just swipe your forex card at the point of sale machine whenever you pay for something. Just like a debit/ credit card transaction, you will receive SMS and email notification of your transaction and the balance.
Gone are the days of travelling with cash in hand. The world has gone digital and it’s time you did, too. With a forex card in hand, you can get the best deals. Be a global citizen and shop without any limits with a forex card. Avoid queues for exchanging your currencies. Forget about the hassles of travelling with wads of cash in your pocket. Just swipe your forex card and enjoy your trip to the fullest.

What is NPS? It's features and benefits!
If you are looking for a safe investment option, the central government’s National Pension Scheme (NPS) is a good choice. You may be wondering what is NPS scheme?
The NPS is a central government pension scheme that can be availed by employees from the public, private and unorganised sectors. Under this scheme, you csssssan make investments in a pension account at regular intervals through the course of your employment. Not only will you accrue interest on your investments, the account will act as a pension fund for you after your retirement. Upon retirement, you will be allowed to withdraw a percentage of the savings and the rest of the funds will be disbursed to you as equal monthly pension.
While the scheme was earlier available to central government employees only, it has now been extended to the general public (everyone except those in the armed forces.) As an additional benefit, you can also avail tax deductions for your investments in NPS.
Types of NPS account
Primarily, there are two types of NPS accounts: Tier I and Tier II. Tier I is a mandatory account and Tier II is a voluntary one. The biggest difference between the accounts is that investments made in Tier I account are eligible for tax deductions of up to Rs 2 lakh but investment towards Tier II account do not attract any tax benefits. However, you may withdraw funds prematurely from your Tier II account. Premature withdrawals from Tier I account are not allowed.
What are the features of NPS scheme?
Here are some of the prominent features of the NPS scheme:
Minimum investment: The minimum amount that one must contribute towards the NPS is Rs500. While there is no upper limit to the maximum amount that one can contribute, a Tier I account requires a minimum contribution of Rs1,000 in a financial year.
Frequency of contribution: A subscriber must make at least one contribution in a financial year.
Eligibility: Any Indian citizen between the age of 18 years and 65 years can invest in this scheme.
Fund manager: If you are not happy with the performance of your NPS account, you can seek a change in your fund manager.
What are the benefits of NPS scheme?
The NPS account comes with a host of benefits. Here are some NPS advantages:
Tax benefit: With the NPS account, you stand to avail tax deductions up to Rs 2 lakh. You can claim a deduction of up to Rs 1.5 lakh for your contribution as well as for the contribution of your employer into NPS. Section 80CCD(1) of the Income Tax Act covers the self-contribution part under Section 80C. The maximum deduction you can claim under 80CCD(1) is 10% of your salary. For the self-employed taxpayer, one can claim 20% of the gross income. Section 80CCD(2) covers the employer’s NPS contribution. The maximum amount that is eligible for deduction is the lowest of the three—actual NPS contribution by employer, 10% of basic + dearness allowance, gross total income. Apart from this, you can claim any additional self-contribution up to Rs50,000 under section 80CCD(1B) as NPS tax benefit.
High returns: Since a part of your NPS goes to equities, returns on NPS are higher than traditional tax-saving investments such as the PPF.
Low risk: The central government has capped the equity exposure of NPS to the range of 50 to 75 %. This reduces the risk involved in investment into NPS.
Retirement benefits: Upon attaining 60 years of age, you can withdraw up to 60 % of your savings in a go. The rest of the funds are given to you as equal monthly pension. By saving early on, you can prepare for your retirement days
If you want to enjoy your retirement days without having to worry about your expenses, it is advisable to invest in the NPS. By investing early, you can prepare for a hassle-free and peaceful retirement life.

What is Pradhan Mantri Jan Dhan Yojana
Since his election as the Prime Minister of India, Narendra Modi has launched several schemes that are targeted to people of different income groups – especially those belonging to the middle and lower-income groups. One of the most popular schemes he’s launched is known as the Pradhan Mantri Jan Dhan Yojana. But what is Jan Dhan Yojana? Let’s find out.
What is Pradhan Mantri Jan Dhan Yojana
Launched in August 2014, the Pradhan Mantri Jan Dhan Yojana is a savings scheme introduced by the PM to ensure that every Indian citizen can open a savings account and gain a sense of financial independence without worrying about maintaining account balances. This scheme targets people belonging to the economically weaker and middle-income groups. It encourages them to open a savings account and benefit from a bouquet of financial facilities and services. Apart from providing a zero balance savings account, account holders also become eligible for benefits like credit insurance and pension as well as easy and affordable remittance, among other things.
What is the benefit of Jan Dhan Account?
Having explained what is PMJDY, let’s take a look at some benefits of the Jan Dhan account. They are as under:
It is a zero balance savings scheme
As mentioned above, the Jan Dhan Account is a zero balance savings account. This means that account holders don’t have to worry about maintaining an average monthly balance in their savings account. They are not charged or penalised for non-maintenance of minimum monthly balances.
Account-holders can avail loans and overdraft facilities
People belonging to economically weaker sections, often do not have a bank account and have to rely on private money lenders for loans. These money lenders often quote high-interest rates, thus adding to the financial woes of such people, and putting them in an infinite loop of loans and EMIs. However, with PMJDY, account holders can avail bank loans at loan interest rates. People who’ve maintained balances for six consecutive months can also avail overdraft facilities of ₹5,000 against savings parked in the PMJDY account.
Account-holders receive accident and life insurance cover
Since people belonging to economically weaker sections cannot afford to invest in insurance, the PMJDY scheme offers the added incentive of accident and life insurance cover. This coverage is provided complimentary with the RuPay debit card under which account holders receive accidental insurance coverage and life insurance coverage worth ₹100,000 and ₹30,000 respectively.
Benefits from government schemes are directly transferred into the PMJDY account
Account-holders can easily access their pension accounts through the PMJDY account. Those individuals who have invested in any government schemes like the SCSS or Atal Pension Yojana, can opt to have their benefits directly transferred into their Jan Dhan savings account.
Final word: Now that you know what is PM Jan Dhan Yojana, and its benefits, you can consider opening your account and availing the benefits that go with it. Visit your nearest bank and find out how to open your PMJDY account.
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