This is the savings plan of banks, you will get more benefit
Every man saves somehow to secure his future. The way Future Savings is most liked in India is FD. Most people consider the bank FD as the best. Apart from this, some people invest in mutual funds, so some people buy shares. At the same time, some people also open a PPF account. In such a way, we are telling RJ you how much money can be invested in the bank, and then you can earn more.
Tax free FD Many bank customers also offer tax-free FD. Any kind of tax you get on this kind of FD does not seem to be taxed. However, remember that return on every FD is not tax-free. Typically tax free FD returns around 6 percent. Its lockin period is 5 years. At the same time, you cannot take this money in between. It has two advantages: one, you get more interest than the savings account. You get a discount in the second tax also.
Flexi account or sweep in facility Most banks are offering such facilities to their savings account holders like SBI, Bank of India, HDFC Bank, Punjab National Bank, ICICI Bank, Axis Bank etc. Let's tell you what this feature is and how you can take advantage of it.
What is Sweep Inn Facility? A maximum deposit is settled for the Savings Account in banks. Many times the customers can also decide maximums. After that, you can not remain more in your account. In view of this restriction, banks offer facility to convert surplus amounts to FDs. At this amount, the bank gets interest according to the interest rate fixed for the FD in the bank. This is called sweep in facility.
Examples: The Bank's Savings Account Limit is Rs. 3, 00,000 4, 00,000 in your account is deposited. In this case, the bank will make a FDI of your Rs. 1, 00,000. The advantage of this would be that the customer will continue to get interest on the Savings Account. With this, the interest on FD will also be available on the additional amount. In this case, the customer has double benefit.
PPF Public Provident Fund (PPF) has been a favorite investment for investors for many years. And why do you get tax benefits when you do not invest? At the same time, there is no tax to be paid at the time of maturity. In such a case, if the government guarantees are added, then PPF is a unique investment. At present it gets interest at 7.6 per cent. Apart from this you can deposit minimum 500 rupees in PPF and max 150,000 rupees annually. PPF Selective Bank Can is opened in the branches.
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