Bank FD v/s Banking Fund
We Indian love very much keep deposit in
bank FD. Since my childhood I have seen immense faith of people in bank FD
because they all think that bank FD is the safest instrument on this earth to
keep their hard earned money. Very few people know that the bank only give
guarantee maximum Rs 1 lakh through insurance in case of any system collapse or
bankruptcy. It means more than Rs 1 lakh in bank always in risk. However, there
are very low chances to fail the bank because our central bank RBI is one of
the top regulator in world. Every financial instrument have their own risk and
reward. So we are going to do a small comparison between bank FD and banking
fund.
For example a person invest Rs 1,00,000
in SBI bank FD and in a banking Fund on 20th May 2003. After 11 year the value
of invested Rs 1 lakh in SBI bank FD grows up to Rs 2,66,190. On this amount we
have to pay tax according to our income slab and bank deducts TDS direct at the
time of withdrawing the money. Bank FD is a secure investment compare with other
available instruments. It hardly beats the inflation. Therefore it is not a
wealth creator.
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product and want more information regarding investment or you need investment
services, feel free to ask us. We also conduct the seminar on investment and
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