Fixed Deposit of Rs. 60 Lakhs

Investing in a fixed deposit of Rs. 60 lakhs offers several advantages, making it an attractive investment option for many individuals. Some of the key benefits include:

1. Stability and safety: FDs are considered low-risk investments, ensuring that your principal amount remains secure while earning interest.
2. Regular income: With the option of monthly interest payouts, FDs provide a steady source of income. For instance, at an interest rate of 7.35%, a fixed deposit of Rs. 60 lakhs would generate a monthly interest of approximately Rs. 36,750.
3. Higher interest rates: Compared to savings accounts, FDs generally offer higher interest rates, particularly when invested for longer tenures.
4. Tax considerations: Although interest earned from FDs is taxable, submitting Form 15H/G can help you avoid deductions if your annual income falls below the tax exemption limit. Moreover, investing in tax-saving FDs can provide deductions under Section 80C of the Income Tax Act, up to an investment of Rs. 1.5 Lakhs.
5. Flexibility: FDs come with various tenure options, allowing you to choose an investment period that aligns with your financial goals.
6. Senior citizen benefits: Senior citizens often enjoy higher interest rates on FDs, making them an even more attractive investment option for this demographic.

• A fixed deposit of Rs. 60 lakhs comes with several attractive features that make it a popular investment option. One of the key advantages is the flexibility in interest payout options. You can opt for monthly interest payouts to generate a regular income stream from your FD, which can be particularly useful for those who rely on their investments for a steady cash flow.
• Another feature to consider is compounding interest. Some FDs offer the option to reinvest the interest, known as a cumulative FD. This can lead to higher returns over time due to the power of compounding, as the interest earned is added back to the principal amount, allowing you to earn interest on your interest.
• It is important to note the tax implications for an FD of Rs. 60 lakhs. The interest earned is subject to Tax Deducted at Source (TDS) if it exceeds Rs. 40,000 per annum for non-senior citizens and Rs. 50,000 for senior citizens. Keep this in mind when planning your investment strategy, and consult with a tax professional if needed.
• FDs offer a range of tenure options, with a minimum of seven days and a maximum of ten years. This allows you to choose an investment period that aligns with your financial goals and liquidity requirements. However, if you need to withdraw your funds before the maturity date, premature withdrawal is allowed but often incurs a penalty in the form of reduced interest rates.
• Minors can also benefit from fixed deposits. They can open FDs under the guardianship of a parent or legal guardian, providing an opportunity to start saving and investing from a young age.

• To open a fixed deposit of Rs. 60 lakhs, you must meet the following eligibility criteria:

  1. Age: You should be at least 18 years old. Minors can invest through their legal guardians.
  2. KYC documents: You must provide a PAN card, Aadhaar card, address proof, and passport-sized photographs.
  3. Account: If booking the FD through a bank, you should have an existing savings account. For NBFCs, fresh registration may be required.
  4. Deposit amount: The minimum deposit amount for most banks ranges from Rs. 5,000 to Rs. 10,000. As Rs. 60 lakhs exceeds this threshold, additional declarations may be necessary.

  Special cases:

  • Senior citizens: You may be eligible for higher interest rates (typically +0.25–0.75% p.a.) without altered eligibility criteria.
  • Hindu Undivided Families (HUFs): You can invest in tax-saver FDs under Section 80C.
  • Non-Resident Indians (NRIs): You can invest via Non-Resident External (NRE)/ Non-Resident Ordinary (NRO) accounts, subject to Foreign Exchange Management Act (FEMA) guidelines.

  For tax-saver FDs, there is a mandatory lock-in period of 5 years to avail 80C deductions. The maximum investment allowed under Section 80C is Rs. 1.5 lakh annually, separate from regular FDs.

  When choosing a fixed deposit provider, consider factors such as interest rates, flexibility, digital access, and trust. Airtel Finance, with its partner banks, offers a range of fixed deposit options to suit your investment needs.