Tax is deducted by the banks on
FDs if interest paid to a customer at any bank exceeds Rs. Ten thousand in a
financial year. Bank FDs popularity is not limited to the boundaries of Indian
Territory; the Non Resident Indians can also open these accounts. In fact this
type of investment is very common among NRIs. The bank FD interest rates come with easy repayment options and are not
very highly marked. With judicious and attractive schemes being offered with
these FDs is what is making it all the more popular. The most dynamic feature
of bank fixed deposits is that customers can avail loans against these FDs up
to 85 to 95 percent of the value of deposits.
Summary: The bank FD
interest rates are quite feasible when it comes to taking loans on these
FDs. This fact has made bank fixed deposits a popular and preferred investment
option with Indians as well as NRIs.
