Bank deposit schemes are one of the easily available and affordable methods of savings option. All the banks in India offer the below mentioned deposit products to their customers. All you need to have is an account in a particular bank where you are going to stay invested.
1.Fixed Deposit Schemes - You can invest a lump sum amount and draw the interest on a monthly or quarterly or half yearly basis.The interest charged is simple.
2.Cumulative Deposit Schemes - This is an option where you can deposit a lump sum amount and draw the total maturity amount i.e., principal + interest, at the time of maturity. Here the interest is compounded either quarterly or half yearly.
For both the options mentioned above you can mention the time period of your wish. Ideal time is one to three years.
3.Tax saver schemes - To get tax exemption you have stay invested in a deposit scheme without drawing interest for atleast five years as per Indian Income tax laws. It is the same as cumulative deposit scheme but you have to deposit for atleast five years or you can ask whether the bank is offering you any Tax saver scheme. Almost all banks have such options.
4.Recurring Deposit schemes - It is the affordable method available for the people from all walks of life. You can deposit a particular amount every month for a particular period from one year to ten years. Some banks offer you a time period for more than ten years. You can start with a minimum of Rs.100.00 to a maximum amount without limitations. Some banks offer you flexible schemes where you can deposit certain future monthly deposits in advance.
The interest rates for all the above schemes varies from time to time
and differs for each and every bank. However you can check the latest
interest rates provided in their websites. Also there are many
calculators available online for checking the returns.
Things to remember while depositing:
Do not forget to mention your PAN card. If you are earning an interest for more than Rs.10000.00 in a financial year you will be charged 20% TDS (TAX) if you do not provide your PAN card and you will be charged 10% TDS if you provide your PAN Number.
And one more important thing is,whenever you are depositing make it a habit to nominate somebody and tell your closed ones how much and where you have invested. Accidents happen every time. As a banker I often see families of the dead person struggling to settle their claims from the deposit.
