Budget 2019: How The Budget Will Impact Term Deposit Investments?

By siliconindia   |   Thursday, January 31, 2019
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Budget 2019: How The Budget Will Impact Term Deposit Investments?

Amid focus on the Interim Budget on February 1, speculations regarding Budget 2019 have started gathering momentum. The interim budget will enable the government to outline its medium-term economic priorities, and it has already started arousing attention regarding the additions and improvisations for investors and tax payers.

The Interim Budget 2019 is speculated to bring good news for risk-averse investors seeking secure investment avenues like term deposits to balance their investment portfolio. With two speculated changes in the 2019 Union Budget, you can gain more from your fixed-income investment options.

Here’s a look at the most likely reforms the Interim Budget 2019 may entail, and how they could impact your deposits:

Restructuring of tax slabs

In 2014, the income tax slabs were increased from Rs. 2 lakh to Rs. 2.5 lakh. Further, in the 2017 budget, the rate of tax was lowered from 10% to 5% for the tax slab from Rs. 2.5 lakh to Rs. 5 lakh. In the upcoming budget, there are high expectations for the basic tax exemptions to increase. This would mean that the taxable income slab would start from an amount above Rs. 2.5 lakh, which would prove quite beneficial if you use Forms 15G/15H to prevent TDS deductions on the interest earned via term deposits.

Increase in deduction limit under Section 80C

The year 2014 also provided the opportunity to claim higher tax breaks, with the deduction limit being pushed to Rs. 1.5 lakh. Rumour has it that the Union Budget of 2019 may bring another increase in that maximum deduction limit. If all goes as expected, the limit may be pushed to Rs. 2.5 lakh, allowing you to increase your investments and make the most of term deposits. Moreover, you can ladder your tax- saving FDs with ease, without worrying about the amount you allocate to other investments in your portfolio.

While you hope for these changes to be brought about, here’s a look at one of the most lucrative fixed deposit options that you can choose, without worrying about the outcome of the Union Budget of 2019.

Bajaj Finance Fixed Deposit

You can benefit from an interest rate of 8.75%, when you invest in Bajaj Finance Fixed Deposit for at least 36 months, and choose to get interest at maturity. Further, senior citizens can gain up to 9.10% interest on the same investment. What’s more, you can earn up to 0.25% additional interest as an existing customer, on renewal or by choosing the special 15-month tenor scheme. Bajaj Finance Fixed Deposits have the highest safety ratings from CRISIL and ICRA, so your deposits are never at risk. You can start investing with an amount of just Rs. 25,000. You can also choose your tenor, and the frequency of your interest payouts.

Investing in Bajaj Finance FDs is quite easy and you can do so, within minutes while enjoying the convenience of having your documentation picked up from your doorstep. Moreover, you can manage your account online at a secure customer portal.

However, since a change in the interest rate is unlikely, now is a good time as any to invest. Once Budget 2019 is tabled, you’ll have a clear picture of the tax benefits you stand to enjoy. In the meanwhile, you can use the FD calculator to gauge the returns you can get, by investing in fixed deposits.

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