When we have a sum of money and we want to invest it, Fixed Deposit is one of the best options to get return benefits.
Looking for an FD with no taxation? Then tax Saving Bank Fixed Deposits are fixed deposit schemes with good returns that are not taxed. To avail this scheme we need to invest the specific amount where you can enjoy tax benefit for investments of up to only INR 1, 00,000. But to benefit from this kind of savings one needs to save for a minimum of five years.
If you have tax saving fixed deposit under the Deposit Insurance and Credit Guarantee Scheme of India then you have an insurance coverage of up to INR 1 lakh.
Besides banks, one can also apply for fixed deposits from co-operative banks and non-banking financial institutions (NBDC) like LIC/Shriram Transport Finance Company Ltd which offers FDs and sometimes they offer better interest rates on FD than the banks. Though one need to make sure that the investment needs to be made in reputed NBFC as some of them are susceptible as well.