Question: Is LIC Better Than FD?

Can I withdraw FD before maturity?

Fixed deposits, with premature withdrawal facility, allow the depositor to close the FD before the date of maturity arrives.

This comes as a relief in times of cash crunch.

However, a certain amount may be required to be paid by the depositor as a penalty to the bank.

This usually ranges between 0.5% and 1%..

Is Rd account tax free?

The interest income earned on your RD is not exempted from income tax. … You need to add the interest income as ‘income from other sources’ when you file your IT returns. TDS will be deducted on interest on recurring deposits if the amount exceeds Rs. 10000.

Is Rd better than FD?

The interest amount earned at the end of maturity of a Fixed Deposit is higher than the interest earned on an RD. The interest amount earned is lesser than the interest earned on an FD. The interest earned on an RD is paid on maturity along with the capital amount.

What’s the best investment in 2020?

Here is my list of the seven best investments to make in 2020:1: Stay the Course with Stocks – But Tweak Your Portfolio.2: Real Estate Investment Trusts (REITs)3: Invest in Yourself.4: Invest in a Side Business.5: Payoff Debt.6: Starting or Supercharging Retirement Savings.7: Spending Time with Family.

Is Post Office FD safe?

Government-backed schemes like post office saving schemes and bank fixed deposits are safe and they also offer assured returns. However, the trouble with them is that they offer only modest returns. Often the post-tax returns fail to beat inflation. When that happens over a long period, your money loses its value.

Is LIC a good investment option?

Is LIC Plan a good investment? Yes, LIC offers best life insurance plans. If you are looking for investment and protection option under one product, you can consider Endowment or Unit Linked Investment Plan (ULIP) as per your risk appetite and financial objectives.

Which is best FD or MF?

But, in the long-term, Mutual Funds have the capacity to provide FD beating returns. Further, Mutual Funds are highly liquid and more tax efficient as compared to the benefits of FD. So, as per all the criteria discussed earlier, Mutual Funds makes a better investment option than FD.

Is FD tax free?

Interest income from Fixed Deposits is fully taxable. … This Tax is Deducted at Source by the bank at the time they credit the interest to your account, and not when the FD matures. So, if you have a FD for 3 years – banks shall deduct TDS at the end of each year. (See below for more details on TDS on FDs).

Can I lose money in mutual funds?

There is no guarantee you will not lose money in mutual funds. In fact, in certain extreme circumstances you could end up losing all your investments. … Mutual funds are managed by fund managers who invest in a wide variety of stocks, bonds and commodities. So, it’s not that all of your mutual funds would fail.

Which is the safest mutual fund in India?

SBI Bluechip Fund.Aditya Birla Sun Life Tax Relief 96.SBI Small Cap Fund.ICICI Prudential Bluechip Fund.Canara Robeco Bluechip Equity Fund.Kotak Emerging Equity Fund.Mirae Asset Tax Saver Fund.Tata India Tax Savings Fund.More items…

Which investment is better than FD?

Short term debt funds invest in bonds with a maturity period of one to three years. It is suitable for low-risk investors with a similar investment horizon. It is a tax-efficient investment as compared to fixed deposits for investors in the higher tax brackets.

Which bank is best for FD 2020?

IndusInd Bank is the topmost bank for 1 year FD as it offers the highest interest rate of 7.00% on deposits of this tenure….Banks Providing Best FD rates for 1-year Tenure.1 Year FD RateBanks with this rate6.75%Jana Small Finance Bank6.60%Equitas Bank6.50%Yes Bank6.50%IndusInd Bank1 more row•Jan 12, 2021

Which FD scheme is best?

Small Finance Banks FD Rates 2021Best FD Interest Rates from Small Finance Banks in IndiaBank NameRegular CustomersTenureUtkarsh Small Finance Bank7.00%700 daysEquitas Small Finance Bank7.00%2 years 1 day to 3 yearsAU Small Finance Bank6.75%24 Months 1 Day to 36 Months & 60 Months 1 Day to 120 Months5 more rows•May 11, 2020

How can I double my money in 5 years?

Rule of 72: Divide 72 by the Expected Annual Returns Since you want to double your money in 5 years, your investments will need to grow at around 14.4% per year (72/5). Or if your goal is to double in 10 years, you should invest in a manner to earn around 7.2% every year.

How many years FD will double?

To know the time duration in which your FD amount will get doubled, you have to divide 72 with the highest rate. For example, if the highest rate on FD is 6.95%, then the number of years in which your FD will get doubled is 72/6.95= 10.36. Thus, it will take 10 years for your FD to get doubled.