Negative Returns are being earned by your Fixed Deposits
Holders of fixed deposits have been earning a negative return in actual terms for most of the former five years
To make issues shoddier, depositors continue to be taxed on this ostensible income.
Bank fixed deposits have never been tax friendly; the level of compliance has been sketchy. But compliance is slowly getting stricter. In the past, RBI norms required banks to take into account deposits in one branch for the purpose of tax deduction at source—a rule which allowed depositors to break up FDs across branches to avoid TDS.
Several private banks allowed customers to break up FDs and route them into […] Read more