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How Will the Interim Budget Influence Fixed Deposit Rates?

As is the common knowledge, the budget set at the national level influences the entire country’s financial situation, and it doesn't distinguish between different sectors of the economy. The budget is generally passed by the legislature and later on approved by the chief executives or the president of the country.

The budget is finally presented to the general public by the Current Finance Minister of the nation. Since a budget affects all financial situations and sectors, it is important for potential investors to understand and take note of the additions and revisions in the budget before investing in any scheme. Budget affects both (money market as well as capital market instrument).

It affects Fixed Deposit (FD) and its interest rates too. Hence, once these changes are noted, it is advised that you utilise FD Calculator to calculate your maturity amount while considering the current laws and policies.

Fixed Deposit

Fixed Deposit is a type of investment scheme which is suitable for all individuals who are seeking a high return on their investments in a safe investment scheme. Fixed Deposit provides high-interest rates to their customers along with flexible tenors. A Fixed Deposit scheme is supported by various credit rating agencies such as ICRA and CRISIL to name a few. Also, there exists no market fluctuations on Fixed Deposit's maturity amount.

How Budget 2019 affects Fixed Deposit

The Budget 2019 which was presented on 1st February 2019 will influence Fixed Deposits in the following ways

  • As per the budget 2019, Individual taxpayers with annual income up to Rs 5 Lakhs are eligible for tax rebates. This is beneficial for taxpayers who come under this category as they can invest their surplus into Fixed Deposits and earn higher ROI. Investing in Fixed Deposit schemes also benefits the individual as Fixed Deposits as per Section 80C are eligible for tax deductions. Thus individuals get to grow their wealth with Fixed Deposits.
  • As per the budget 2019, there have been standard tax deductions for all salaried persons who earn Rs 40,000-Rs 50,000. For such individuals, the Fixed Deposit scheme becomes favourable as they get to put their savings in a safe investment scheme which is recognised for its high interest rates. The good thing about Fixed Deposits is that they can be opened with a minimum initial deposit. Individuals who belong to these salary income slab can even start a Fixed Deposit Scheme under their parent's name and get higher interest rates.
  • As per budget 2019, Around 3 Crore Middle-class taxpayers will get tax exemptions too. These becomes a favourable situation for these group of individuals as they can opt for Fixed Deposit Laddering which will allow them to grow their investments with respect to multiple sources. Fixed Deposit becomes the perfect vehicle to increase their earnings as they can invest their surplus funds for a longer duration of times with less liquidity.

Thus we can conclude that Budget 2019 plays a favourable role for investors who seek to grow their earnings with respect to Fixed Deposits. It is even estimated that Fixed Deposit Rates will enhance more so than post demonetization due to more and more people investing under this scheme. However, FD interest rates aren't the only thing that investors should be looking for. They should be doing in-depth research on their schemes with respect to security, tenors and other benefits also. Individuals are also recommended to consult their Certified Financial Planners for any advice on the financial health of Investment schemes.

Optimise wealth with Bajaj Finance Fixed Deposit

Bajaj Finance provides Fixed Deposit facility to individuals seeking to grow their wealth through a safe investment avenue. The features provided under this investment scheme are:

  • High-Interest Rates are provided to the individuals ranging from 8.75%-9.10%.
  • Senior citizens FD allows higher interest rates by 0.35%.
  • The investment scheme allows flexible tenors ranging from 12-60 months.
  • There is a special tenor available under this policy which ranges for 15 months. This particular tenor provides 0.25% more interest as compared to the 12-month tenor.
  • The company is accredited with ICRA (MAAA) and CRISIL (FAAA) rating in India.

FD calculator is even provided for calculating the maturity amount as well as estimating returns in advance under the respective scheme. Start investing today, to maximise your gains.

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