1. Risk elements and taxation are of paramount importance in all fixed income products.
2. Corporate Deposits are unsecured loans that don't guarantee anything to the investor.
3. DICGC insures bank deposits of up to Rs.1 lakh only across all branches of a bank.
4. Fixed Deposits are prone to uncertainty because interest rates tend to move in multi-year cycles.
5. Premature withdrawals invite a penalty besides lower returns.
6. Interest earned on all Deposits is fully taxable, and also subject to TDS - recurring deposit, however, has no TDS - if no relevant request form is submitted.
7. No investments in Deposits are eligible for tax deduction except tax-saving FDs.
8. While there is Rs.10,000 tax exemption on savings bank interest, fixed deposit income is fully taxable.
9. Interest rates of small savings deposit schemes are market-linked and falling inflation brings them down.
10. Besides the risks of interest rate, liquidity, inflation and reinvestment in Deposits, there are risks of credit, downgrade and default in Company Deposits.
2. Corporate Deposits are unsecured loans that don't guarantee anything to the investor.
3. DICGC insures bank deposits of up to Rs.1 lakh only across all branches of a bank.
4. Fixed Deposits are prone to uncertainty because interest rates tend to move in multi-year cycles.
5. Premature withdrawals invite a penalty besides lower returns.
6. Interest earned on all Deposits is fully taxable, and also subject to TDS - recurring deposit, however, has no TDS - if no relevant request form is submitted.
7. No investments in Deposits are eligible for tax deduction except tax-saving FDs.
8. While there is Rs.10,000 tax exemption on savings bank interest, fixed deposit income is fully taxable.
9. Interest rates of small savings deposit schemes are market-linked and falling inflation brings them down.
10. Besides the risks of interest rate, liquidity, inflation and reinvestment in Deposits, there are risks of credit, downgrade and default in Company Deposits.