If you’re in a low tax bracket, a tax-saving FD can be a smart investment choice. Key Features:Lock-in Period: Tax-saving FDs typically have a lock-in period of 5 years, during which premature withdrawals are not allowed. Effective Returns: To calculate your effective returns, deduct the tax savings (₹7,500) from the final maturity amount (₹1,99,566). Tax Bracket: Tax-saving FDs are most beneficial for individuals in lower tax brackets. However, carefully evaluate your financial goals, risk tolerance, and tax-saving needs before investing in tax-saving FDs to ensure they align with your overall financial strategy.

Source: News 24 October 09, 2023 14:12 UTC