Question 1

Is it safe to Invest in FDs via Upstox?

Accepted Answer

Yes, investing in FDs via Upstox is completely safe as your investments are directed to banks, and Upstox serves as a platform connecting you with various banks. Once you invest in an FD, you get all the details directly from your FD provider in your email.

Question 2

What are the benefits of investing in FDs?

Accepted Answer

FDs offer safety of capital, assured returns, flexibility in tenure, and higher interest rates compared to a savings account. They also offer tax-saving options under Section 80C for specific tenures.

Question 3

What happens after my FD is matured?

Accepted Answer

After your FD matures, the FD provider will credit your maturity amount directly to the same bank account you used for investment, usually within 3 working days

Question 4

What happens when I exit my Fixed Deposit before maturity?

Accepted Answer

Exiting a fixed deposit before maturity usually incurs penalties, reducing your interest earnings. The bank may charge a premature withdrawal fee and offer lower interest rates, impacting overall returns. This makes early withdrawal less financially favorable compared to holding the fixed deposit until maturity.

Question 5

How are fixed deposits (FDs) taxed?

Accepted Answer

The interest earned from FDs is added to your total income for the financial year and taxed according to your applicable income tax slab.

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