Fixed Deposit for Monthly Income

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1. Tax Planning for 2009 - Part 1 wrote:

   [...] Another good source for the tax savings is the Fixed Deposit scheme. from 2006, the government has extended the tax benefits as five-year fixed deposit schemes.  In the existing the provision, you are eligible to claim the tax benefits up to Rs.100000. But, with the tax saver fixed deposit you cannot apply for the loan against fixed deposit. The interest rates on fixed deposit is decreasing rapidly, it may touch the 7% per anum mark with in next few months. It was golden time when the fixed deposit rate is above 10%. I have written a detailed article on how to start the fixed deposit for tax savings. [...]

   March 27th, 2009 at 12:04 am
2. Insurance Cover for your Fixed Deposit in the Banks wrote:

   [...] to avoid TDS on Fixed Deposit? Top 5 Rules for Fixed Deposit Investment Fixed Deposit for Monthly Income Tax Savings on Term Deposit under Section [...]

   April 27th, 2009 at 6:32 pm

1. srikanth said:

   I applied for FD in ICICI bank thru online. I get receipt after 1 week thru registered post.

   May 25th, 2009 at 12:07 am
2. krishnas said:

   HI Srikanth,

   Did you get the receipt through registered post? Please share your experience on opening the ICICI bank FD through online.

   Thanks,
   Krishna

   May 25th, 2009 at 1:29 am
3. gulshan badole said:

   Sir actually i want to know if i keep the 80,000 in ICICI with fixed deposit then how many interest or rupees i can earn by monthly wise please tell me pleasurly.

   May 30th, 2009 at 8:26 pm
4. krishnas said:

   HI Gulshan,

   It depends on the interest rate. You have not mentioned the interest rates for the deposit. You can find the latest interest rates here:
   http://www.icicibank.com/pfsuser/interestrates/interestrates.htm

   If you have any doubts please reply to this comment.

   Thanks,
   Krishna

   May 30th, 2009 at 8:41 pm
5. jaikumar said:

   i want to invest to get good intrest every month with garenteee

   June 2nd, 2009 at 3:54 am
6. jaikumar said:

   i want to invest to get good interest every month with guarantee

   June 2nd, 2009 at 4:01 am
7. krishnas said:

   HI Jaikumar,

   Thank you for the comment. Please let me know your requirements like how much you want to invest. I can help you to invest in the fixed deposit.

   Thanks,
   Krishna

   June 2nd, 2009 at 4:37 am
8. minakhsee said:

   If any one want to invest We wll give a good plan OF LIC with good return with gurantee kindly call 9833501974

   June 10th, 2009 at 10:40 pm
9. gulshan badole said:

   Sir, I heard that ABC Indya Network pvt.ltd. is joint with the ICICI and they both invest in the google, zopac, and many place that is right or not. and ABC Indya also giving monthy payment by keeping the FD in the ABC Indya.

   So pls I want to know about both tyep and schemes, and many more pls give me whole detail about that early soon. I home that u help me for this.

   June 25th, 2009 at 12:51 am
10. krishnas said:

    @minakhsee ,

    You are from which city or town.

    Thanks,
    Krishna

    June 25th, 2009 at 4:07 am
11. krishnas said:

    @Gulsan,

    If you are looking for to invest in the FD, please look into the reputation of the company. If they are new to the market please stay away from them. I would suggest you to go for Tata Motors or Mahindra Fixed Deposit schemes if you are looking for corporate FD schemes.

    Thanks,
    Krishna

    June 25th, 2009 at 4:46 am
12. gulshan badole said:

    Krishnas, hi mostly thanks for the investment that where i should to do that. If i want to invest in the Mahindra Fixed Deposit schemes then u can help me and give the information about that there process and terms, conditions.

    July 3rd, 2009 at 9:48 pm
13. krishnas said:

    HI Gulsan

    You can contact this number : 09711580860
    He is Mahindra Finance advisor dealing with Fixed Deposits. Please tell him that you got the number from Think – Plan – Invest website. He can guide you through the process. If any difficulties please reply back me.

    Thanks,
    Krishna

    July 4th, 2009 at 11:56 pm
14. Ankita said:

    Hi Krishna,

    I had invested some money last year in 5 year fixed deposit in SBI under the tax savings scheme. I didn’t knew about the 5 year locking period then. And now I am in urgent need for money. The people in the bank told me that in no condition I can get my money. Even if I am ready to pay the amount I saved as tax last year.

    But when I inquired more into it, I came to know that if pay the tax money along with the interest in the IT dept and then take that receipt to the bank, then they would allow me to do so. But its was just hear say so I wanted a second opinion on this.
    Could you please tell is this can be done (I am ready to pay the tax amount with interest), and approx. how long does it take for the entire procedure to complete?
    Thanks,
    Ankita

    July 5th, 2009 at 11:02 pm
15. K.DINESH KUMAR said:

    Respected Sir/Madam

    Am 22yrs old unmarried pursuing student for MBA, my dad offering me 20,00,000 lacs for fixed deposit am from chennai , so kindly advice me which fixed deposit scheme will yield me high % monthly interest with maximum guarantee for my investment.

    July 6th, 2009 at 8:42 pm
16. K.DINESH KUMAR said:

    Also please specify me how to split that 20,00,000lacs amount in to 3 parts in to 3 schemes to avoid TDS please kindly advice me the 3 firms for monthly interest earning.

    July 6th, 2009 at 9:13 pm
17. krishnas said:

    HI Dinesh,

    Thank you asking our advice. First of all i want to know what kind of investment you are looking for. But how ever you have mentioned as the Fixed Deposit.

    1)It is obvious that your investment amount is small. So, you have to split the amount and invest in the different sources.

    2)Since you are having the huge amount, while depositing the money in bank, banker may ask you the source of income. In that case I would advice you to get the money from your father as Gift Cheque. That will avoid any legal problems in the future. Because, any money you received is taxable. If you receive the gift from your father, it is not taxable since your father paid tax for that amount.

    3)High paying Fixed Deposits are corporate FDs like Tata Motors and Mahindra Finance. You can invest part of the money there for short term like three years.

    4)Please keep in mind that now all the banks have reduced the interest rates on Fixed Deposit below 8%. So, please choose any of the nationalized banks you prefer. Your father can help you because he might have account with banks. You can go for the same bank.

    5)TDS will be deducted only when the total interest income is over Rs.10000. So, please split it as Rs.400000 each and deposit in the different branches.

    This suggestions are on Fixed Deposit because you are interested. Since the interest rates are very low, you will not get much return for your investment. I would advice you to look for buying land or invest part of the money in mutual funds.

    If you need more details on that, please reply me. I will guide you. Since you are just 22, you very well utilize the 22 lacs and multiply that many in few years if you are working properly.

    Hope this helps you.

    Thanks,
    Krishna

    July 6th, 2009 at 9:48 pm
18. krishnas said:

    I got this message from Minakshee.Pillay@relianceada.com:

    Hi I would suggest you to go for a ULIP Policy. It is unit linked insurance policy. Even if you for eg invest Rs5000 per month for 5 years, you are investing 300000. The next 5 years would be taken care of by the company and at the end of ten years you would get a minimum of 6 Lacs. This is a very gud investment plan + you also get insurance cover of around 6 lacs… This is only an example for little money but you have huge money for investment that means you will get good return as well as insurance You also have the option to go for an FD but that would not give u gud returns or insurance cover…. I am a financial consultant and if you want you can contact me, I can suggest you more options..Do let me know if this was helpful….my cell no is 9833501974
    Regards
    Minakshee
    Extn:80596

    July 6th, 2009 at 10:16 pm
19. K.DINESH KUMAR said:

    sir as you adviced i would get the money from my dad as gift cheque,
    As am have savings account in two nationalized banks lets say 400000 lacs amount in each bank am making FD for short term like 2 years and another 800000lacs amount am making FD for short term in TATA and mahindra finance by dividing proportinally it comes totally 1600000 lacs if this is the case is it risky am investing this large amount in FD and under my one name investing this large amount is possible or not…am already paying 10000 yearly in mutual fund in my name in LIC ..explain me best mutual fund scheme for my age 22 or what is the smart way you will suggest me to do for my age in FD

    July 6th, 2009 at 11:48 pm
20. krishnas said:

    HI Dinesh,

    You can invest all your money in your name. But, investing on the same place would be not advisable. You can split it as you said in your previous comment and invest it. That will be good idea. More over you can get the interest for that amount every quarter if you are interested.

    I think you can invest in FD for few years in that time you get good idea on the investments. Since you are young, put the FD for three years. When you are 25, close some of the FDs and invest in other areas like Mutual Funds,Shares,etc. Sundaram is the popular Mutual Fund scheme. But, it depends on the policy also.

    Thanks,
    Krishna

    July 7th, 2009 at 1:33 am
21. K.DINESH KUMAR said:

    sir thank you so much for your valuable guidance regarding investment planning … i will progress accordingly to your useful plans given to me. Also i like to say this website is very useful for students like us to update our knowledge in various topics that you all explaining excellently.

    Regards
    k.dinesh kumar
    chennai

    July 7th, 2009 at 2:21 am
22. krishnas said:

    Hi Dinesh,

    Thank you for the comments. I am happy to help you if you have any doubts in the financial planning. Since you are student, you have more scope to learn wide variety of knowledge while studying.

    Thanks,
    Krishna

    July 7th, 2009 at 2:57 am
23. Raja Deepak said:

    Hi

    I am Deepak ,Working in a corporate.i need your help regarding the below queries
    1 I need one good life insurace plan to cover as i am married and have a child (1.9yrs).So please suggest me a good plan under LIC.
    Untill now i have taken one ulip plan and it has covered me for 500000.
    2 Please tell me whom to contact for Tata motors FD.

    July 7th, 2009 at 1:21 pm
24. miaskhee said:

    LIC of India’s Komal Jeevan children’s policy has very good investment cum risk plan for citizens. LIC has looked into the need to protect the children in the event of loss of a earning member of the family. Some of the benefits are listed below for the benefit of prospective investors.

    1.Parents interested in protected their own life for the benefits of their childrens with Premium Waiver Benefit option.
    2.Children’s life is also covered in this policy from the age of 7.
    3.Premium payments options include 10 to 18 years, where the benefits of the policy could be reaped by children till the age of 26.
    4.Proposer could be father/mother of the child. parent should be a earning member of the family.
    5.Term Rider benefit could be availed upto 20% of the sum assured, maximum of upto 1 Lakhs addition to the PWB.
    6.Guaranteed Addition of Rs.75/1000 sum assured per year of the policy. Just look at this example.

    Example:

    Master Rahul is aged 3 years and he is the son of Mr.Rakesh, aged 35 years. Mr.Rakesh takes a Komal Jeevan policy for Rs.10 Lakhs. He opts for Premium Waiver Option and Term Rider Option.

    A.Life risk cover on Master Rahul starts at completing age of 7.
    B.If Mr.Rakesh dies before Master Rahul reaches an age of 18, the payment of future premiums are waived, since Mr.Rakesh had opted for PWB premium. Further Rs.1 Lakh is paid towards Term Rider Benefit being Rs.1 Lakh.
    C.At 18 and 20 years of age, Master Rahul will get Rs.2,00,000.00 each. Likewise, he will get Rs.3,00,000.00 each at age of 22 and 24 years. At age of 26, he will get Rs.17,25,000.00 as Guaranteed Addition. (Rs.75/1000 sum assured for 23 years)

    Kindly Call Minu 9833501974

    July 15th, 2009 at 2:56 am
25. krishnas said:

    HI Minaskhee ,

    Thank you for the valuable information.

    Thanks,
    Krishna

    July 15th, 2009 at 3:11 am
26. satya said:

    sir, please let me advice if i hv 100000.00 and i want to get interest p.m then how much rupee i can get as interest and what is the procedure to get interest monthlywise.
    thans…satya!!

    August 15th, 2009 at 1:05 am
27. krishnas said:

    Hello Satya,

    It is easy to get started with the Fixed Deposit with any of the banks. Even online you can do it without visiting the branch itself. Please send me your mobile number to krishna.sa at gmail dot com. I will discuss with you.

    Thanks,
    Krishna

    August 15th, 2009 at 6:55 pm
28. rahul said:

    Hello krishna,

    A maximum monthly income by investing Rs 3600000 (risk medium, return medium/high), please suggest.

    Rs 6 lac spare which should have good return plus high liquidity.

    September 1st, 2009 at 10:36 pm
29. bhavin said:

    hi krishna,

    can you please elaborate more on

    5)TDS will be deducted only when the total interest income is over Rs.10000. So, please split it as Rs.400000 each and deposit in the different branches.

    how you gave this recommendation ?

    September 2nd, 2009 at 2:43 am
30. krishnas said:

    Hello Bhavin,

    TDS will be calculated based on the branches total interets income. If you are investing the huge amount in single branch there is possibility for paying the more amount as tax. To avoid that you can split the amount and invest in the different branches. Moreover, there is no TDS upto Rs.10000 in each branch. Am I cleared your doubt?.

    Thanks,
    Krishna

    September 2nd, 2009 at 2:55 am
31. rahul said:

    Hi krishna
    Just need to clarify , is the rs 10000 limit of tax exemption in one Fixed deposit or cummulative total of fixed deposit in one branch.

    September 2nd, 2009 at 3:14 am
32. krishnas said:

    Hello Rahul,

    It is in single branch. If you have many accounts with the same branch, they will add all the interest income together and deduct the TDS (If it exceeds Rs.10000).

    Thanks,
    Krishna

    September 2nd, 2009 at 3:32 am
33. bhavin said:

    a) what will be the interest income at 7% rate ? If I put 4lac as advised what TDS benefit can I avail?

    b) is it something to avoid TDS or get tax benefit – we have to pay the “actual-tax” on the interest income based on our slab anyway – am I correct ?

    September 2nd, 2009 at 3:32 am
34. krishnas said:

    Bhavin,

    You are correct. TDS is deducting tax at the source and some times you need not pay because your total income itself much lower then taxable income. Note that it is your responsibility to show all your interest income while filing the IT returns. That doesn’t happen normally. Most of the people deposit in different branches and fully evade the tax burden.

    http://www.thinkplaninvest.com/subscribe/

    Thanks,
    Krishna

    September 2nd, 2009 at 4:05 am
35. ANISH said:

    HI KRISHNA,

    I AM A BUSINESSMAN.I NEED YOUR ADVICE ON INVESTING RS.40,00,000 AS FIXED DEPOSIT IN ANY BANK YOU SUGGEST TO GET A GOOD AMOUNT AS MONTHLY INCOME INORDER TO HANDLE MY OTHER BUSINESSES.

    I NEED A SUDDEN REPLY FROM YOU…

    September 9th, 2009 at 12:31 am
36. krishnas said:

    Hi Anish,

    Thank you for the comments. You can split the Rs.40 lacs into different banks. Nowadays banks offering 7-8% interest rates for the fixed deposit. I would suggest you to deposit in the following way

    1. Deposit some of the money in corporate FD with higher interest rates and short duration because you may need money in the future.

    http://www.thinkplaninvest.com/2009/08/tata-motors-invites-fixed-deposit-from-public/
    http://www.thinkplaninvest.com/2009/03/mahindra-finance-fixed-deposit-scheme/

    2. Deposit in the private banks like ICICI and HDFC.

    3. Deposit money in SBI,IOB,or any nationalized banks for long term with cumulative interest schemes where you don’t take the interest.

    In the first two options you can choose to get the interest money for every month or quarterly for your expenses.

    Also read about TDS on fixed deposit:
    http://www.thinkplaninvest.com/2009/04/how-to-avoid-tds-on-fixed-deposit/
    http://www.thinkplaninvest.com/2009/04/what-is-tds-and-tan/
    http://www.thinkplaninvest.com/2009/04/top-6-rules-for-tds-on-fixed-deposit/

    Hope this clears your doubts. If you have any other doubts please reply to this comment.

    Thanks,
    Krishna

    September 9th, 2009 at 6:25 am
37. ANISH said:

    will u please reply fast ????????

    September 9th, 2009 at 9:34 pm
38. ANISH said:

    HI KRISHNA,

    WHEN I INVEST F.D OF 40 LACS IN DIFFERENT BANKS DOES I HAVE ANY OPTION FOR GETTING A BUSINESS LOAN FROM THOSE BANKS IN LESS INTEREST RATE ?????

    September 9th, 2009 at 9:40 pm
39. krishnas said:

    Hello Anish,

    If you are having the FD document, you have the option for getting the loan using your FD and the interest rates on that loan will be 1% higher than the fixed deposit rate. For example, if the deposit is at 7%, your loan will be at 8%. You have to make the decision. In cases like you have the deposit of Rs.20 lacs, if you need Rs.5 lacs for the business purpose, then instead of closing the FD or applying for the personal, get the loan using your FD. It is the only way you can get the loans.

    Other cases, if you are the long term customer for the bank and have all the assests in that bank, based on the trust bank may give you the loan.

    Thanks,
    Krishna

    September 9th, 2009 at 10:02 pm
40. ANISH said:

    HI KRISHNA ,

    IF I INVEST 50 LACS IN F.D , WILL I GET A LOAN OF 50 LACS ITSELF FOR 5YRS TERM?

    September 25th, 2009 at 12:11 am
41. ANISH said:

    ALSO PLEASE TELL ME THE DOCUMENTS REQUIRED…..

    September 25th, 2009 at 12:31 am
42. Anil Reddy said:

    Hi Anish,
    I am planning to invest Rs. 5 lakhs in a bank FD for 5 years @ 8% per year. I dont plan to avail the monthly interest returns of Rs 4000, and roll it with the 5 lakhs. My question is>>How much total amount will I get after the FD due period of 5 years for the 5 lakhs? Please ignore any income tax considerations, which can be another question later. Thanks in advance for your answer

    September 28th, 2009 at 4:20 am
43. rahul said:

    Hi anil,

    You will get not 4000 rs in a month but 40000 rs in first year

    2nd year will be 43200 , 3rd yr – 46656 , 4th yr — 50388
    5th yr –54419
    total 40000+43200+46656+50388+54419= 234663.

    Tax free since the FD is for 5 yrs…I m not sure if every yrs interest is clubbed to ur other income to calculate tax.

    September 28th, 2009 at 4:32 am
44. ANISH said:

    HI KRISHNA,

    PLEASE SENT ME A REPLY….

    October 5th, 2009 at 11:37 pm
45. minakshee said:

    Life Insurance is a way of Savings . I will give u some points to be noted and its Benefits

    life insurance will give u

    1. Savings (depends on Mode- monthly, Quarterly , Half yearly, Annual)
    2. It can be used as a tax savings
    3. It can Give u Pension
    4. It Can Protect ur Family
    5. Investment through life insurance can also be done
    6. Now u also have mutual fund investment.
    Minakshee
    9833501974

    October 5th, 2009 at 11:52 pm
46. Sajal said:

    Hello Krishnas,

    First of all many thanks to you for such a wonderful site & service. I really feel glad to be here.

    I m software engineer and I m salaried persons since last 3 years. But due to some problems I was not able to file IT return. From this year I would like to start it.

    My pkg is right now 3.8 lacs. And my side income (which I get from foreign clients) is around 2.5 lacs. so first of all I want to have as much as less tax on this. My fiancee help me for my side business.. so how it is if I get my side income on behalf of her. So it’s like her pkg is 2.5 lacs. But I doubt here how tax would be calculated for her since it’s coming in $ in western union money transfer, although they cut enough charges on that.

    Also I would really appreciate if u can suggest me a better short term investment planning with my current income with rough figures. I heard about ppf, post, MF, LIC, shares, FD.. but I m confused..your feedback would be really appreciated on this, as I need to take care of my fiancee’s income as well (2.5 lacs).

    Recently i took one insurance policy of Bharti-axa having 20K premium. this is the only investment i have made so far from this year.

    Also my company providing me my whole salary as a basic.. so can i myself claim any allowances like travel, petrol other charges while filling a IT return form?

    Also please let me know how can I make sure i have all white money?

    Thanks,
    Sajal

    October 8th, 2009 at 1:21 pm
47. krishnas said:

    Hello Sajal,

    Thank you for writing to me. For your salary there won’t be any problem because that will be deducted from your employer. Only thing is you have to worry about the tax savings investment to avoid tax. That will not be a problem because your salary is 3.8 lacs. Since your whole salary is basic then you cannot claim HRA exemption for the tax purpose. In your case, up to Rs.160000 there is no tax. Your taxable income is Rs.380000-Rs.160000=Rs.220000. You can reduce the taxable income by investments. You can invest Rs.100000 on section 80c. You have already invested Rs.20000 on insurance which is coming under the section 80c. Remaining Rs.80000 have to be invested. Please choose any of the good options listed in this article:
    http://www.thinkplaninvest.com/2009/03/tax-planning-for-2009-part-1/
    http://www.thinkplaninvest.com/2009/04/tax-planning-for-2009-part-2/

    I would advice you to invest in the fixed deposit for the safety. If you are looking for the high return please choose mutual funds.

    For here, Rs.2.5 lac is income. Out of that Rs.190000 is no tax. Only 60000 is taxable income. Since she is doing it like a business, you have to submit the proof for income that can be any receipts or bank statements. Also deduct any expenses incurred for running that business. I hope this explanation is useful. If you have any doubts please reply to this comment.

    Thanks,
    Krishna

    October 8th, 2009 at 5:17 pm
48. minakshee said:

    Dear sajai, go for one LIC policy.Its one type of investment cum tax saver.
    Jeevan Saral, is the best policy in the market. It is awarded a Golden peacock award for its unique features. 1. Premium is independent of the age. 2. Life cover is 250 times of the monthly investment. Ex: Premium of Rs. 1000/- per month will give a cover of 2 lakh 50 thousand. 3. ATM facility. Withdraw Accumulated money in Full or Partial after 10 years. Any body in mumbai interested in buying Jeevan Saral may contact me 9833501974. anf after 10 years you will get surely Rs.212904. Its all free from Income tax.you are just investing Rs.12000 and u are getting back Rs.212904.since it Goverment Body no fear of loss . the Insurance Sector is establishing itself as one of the most prosperous markets in modern times.Pl call for more information 9833501974

    October 8th, 2009 at 11:26 pm
49. krishnas said:

    Hello minakshee ,

    Thank you for the reply. LIC also good tax savings plan if you don’t have one.

    Thanks,
    Krishna

    October 9th, 2009 at 1:32 am
50. Sajal said:

    Hello Krishnas,

    First of all many thanks for your kind reply, same to you Minakshee.

    Ok as you said I can choose from FD & MF. I have heard also few other options like postal investment, KVS (Kishan Vikas Patra).. hows that?

    Also as there is not much diff between interst rates of Recurring Deposits & FDs…. which is much better and what’s the reason? Also if you can suggest good MFs for 1 to 2 years investment?

    For my fiancee you said as she is doing it like business i can show the expenses also… do we need to establish a firm Or company to do that.. or it can be done personally?? And as far as expenses concered which kind of expense I can include.. say I purchase personal computers, other asseccories for my office use.. Can i include those? sorry for this silly question, but one of my friend said you can almost include everything you purchase, I wonder? please have your comments on this.

    Finally i wonder what’s called my white money on paper??

    Between I m planning to invest around 160000/-… what should be your porfolio.. lets say for mid-term(1 to 1/2 years) investment, regardless of taxsaving, since I m planning to do IT return from next year?

    sorry if I include too many doubts, I m really curios to know all these things and I believe I m now touch with Experts.

    Thanks,
    Sajal

    October 9th, 2009 at 10:14 am
51. krishnas said:

    Hello Sajal,

    You can go for any of the post office savings because the interest rates are higher compare to the fixed deposit. And also it is more safe for your money.

    For expenses, anything you have spend for earning that money. You must produce the bills for that. The expenses must be relates to your business.

    Rs.160000 you can invest in the company FD schemes. If you are interested in Mahindra Finance please contact me. I am agent for that company. But, I am not forcing you to take that one. I am not suggesting you to take MF or Shares, because these days the sensex is not stable and it is better to go for the less risky option.

    If I missed any of your doubts please reply again. I am happy to answer all your questions.

    Thanks,
    Krishna

    October 10th, 2009 at 8:46 am
52. Sajal said:

    Thanks Krishana. I had few more which you missed out

    What is the difference bet Recurring and fixed deposits… which is better and how?

    As you said i can go for Mahindra FD for my 1.6 lacs. would u please let me know what would I get after 1 year for cumulative plan? and what would I get after 1 year is tax free? Also please let me know if there are any hidden charges, since I recently experienced it with ICICI Pro MF… I just get back my money from that plan.

    Finally I wonder what’s called my white money on paper?? What r good & legal options to convert money in white?

    October 11th, 2009 at 12:33 am
53. krishnas said:

    Hello Sajal,

    1. Bank Fixed Deposits are also known as Term Deposits. In a Fixed Deposit Account, a certain sum of money is deposited in the bank for a specified time period with a fixed rate of interest.

    Loan / overdraft facility is available against bank fixed deposits. Premature withdrawal is permissible but some penalty is levied. Tax Deductible at Source, if the interest paid/ payable on deposit exceeds Rs.10000/- per customer, per year, per branch.

    Under a Recurring Bank Deposit, a specific amount is invested in bank on monthly basis for a fixed rate of return. The deposit has a fixed tenure, at the end of which the principal sum as well as the interest earned during that period is returned to the investor.

    In most of the public sector banks, one can start a Recurring Deposit Account with a monthly installment of Rs. 100/- only.Loan/overdraft facility is also available against Recurring Bank Deposits.

    2. To convert all your money to white is just pay all the taxes. That is the only way. Show your actual income and pay the income tax.

    3. Regarding the Mahindra deposit, I will reply you once get the more details.

    Thanks,
    Krishna

    October 11th, 2009 at 1:12 am
54. krishnas said:

    Hello Sajal,

    You will get Rs.12800 as the interest for one year deposit with Mahindra Finance for Rs.160000. The rate of interest is at 8% p.a..

    Thanks,
    Krishna

    October 11th, 2009 at 1:45 am
55. minakshee said:

    Hi Sajai, I would suggest you to go for a ULIP Policy. It is unit linked insurance policy. Even if you for eg invest Rs5000 per month for 5 years, you are investing 300000. The next 5 years would be taken care of by the company and at the end of ten years you would get a minimum of 6 Lacs. This is a very gud investment plan + you also get insurance cover of around 6 lacs… You also have the option to go for an FD but that would not give u gud returns or insurance cover…. I am a financial consultant and if you want you can contact me, I can suggest you more options..Do let me know if this was helpful….You have an option of one time investment also.
    Minakshee 9833501974

    October 11th, 2009 at 9:25 pm
56. krishnas said:

    Hello minakshee,

    Thank you for the help.

    Thanks,
    Krishna

    October 11th, 2009 at 10:11 pm
57. arun said:

    Hi Krishna,

    Can i get your email please.

    Regards,
    Arun

    October 27th, 2009 at 1:44 am
58. arun said:

    Dear Krishna,

    Can you advice me a good SIP ? I am working abroad.

    Sincerely,
    Arun

    October 27th, 2009 at 3:13 am
59. minakshee said:

    “Jeevan Saral, is the best Insurance Plan in the market. It is awarded a Golden peacock award for its unique features. 1. Premium is independent of the age. 2. Life cover is 250 times of the monthly investment. Ex: Premium of Rs. 1000/- per month will give a cover of 2 lakh 50 thousand. 3. ATM facility. Withdraw Accumulated money in Full or Partial after 10 years. For more information pl call me 9833501974

    October 27th, 2009 at 3:19 am
60. krishnas said:

    Hello Minakshee,

    Thank you for the information.

    Thanks,
    Krishna

    October 27th, 2009 at 6:40 am
61. krishnas said:

    Hello Arun,

    Can you try these four. I found its doing good. Also there is many other SIP doing good. do the good analysis before
    investing.
    1. DSP BLACKROCK EQUITY FUND – DIV REIN
    2. RELIANCE GROWTH FUND DIV. REIN
    3. SBI MSF UMBRELLA CONTRA DIV REIN
    4. DSP BR TOP 100 EQUITY FUND DIV REIN

    Thanks,
    Krishna

    October 27th, 2009 at 6:42 am
62. krishnas said:

    Hello Arun,

    If you have any questions write it here:
    http://www.thinkplaninvest.com/contact/

    I will reply from my email id.

    Thanks,
    Krishna

    October 27th, 2009 at 6:43 am
63. Awadesh said:

    Dear Krishna,
    thank you so much for providing such valuable information. I want to invest 1.0 lacs for my mother in such a way that she could get some money per month keeping the original amount very safe. Could you please suggest me the most efficient way to follow ? I have just started earning some money and this is my first dream to fulfill.

    regards,
    awadesh

    October 30th, 2009 at 5:41 am
64. krishnas said:

    Hello Awadesh,

    Thank you for the comments. I happy to see your dream and the financial goals.

    In that case you can go for Fixed Deposits in Tata Motors or any of the banks. Even you can choose the banks like ICICI or HDFC to start your FD account. They will give you the monthly interest on your savings account. Your mother can use that for the expenses. Private banks will have good option in this case compare to public banks. Your money also will be safe. I am happy to guide you if you have any doubts.

    Thanks,
    Krishna

    October 30th, 2009 at 6:01 am
65. krishnas said:

    Hello Awadesh,

    This link will help you to open HDFC FD account online. You need not visit the bank branch for opening the fixed deposit account:
    http://www.thinkplaninvest.com/2009/10/how-to-open-hdfc-fixed-deposit-in-online/

    In the same way you can do with ICICI bank also.

    Thanks,
    Krishna

    October 30th, 2009 at 6:03 am
66. Awadesh said:

    Hello Krishna,
    thank you so much for your valuable quick reply.
    Could you please tell me that how the given option is better than Post office monthly income scheme (POMIS) ?

    October 30th, 2009 at 6:45 am
67. krishnas said:

    Hello Awadesh,

    The following are the points in POMIS scheme.

    1. 6 years lock in period
    2. maximum 450000 allowed in this scheme
    3. 8% interest
    4. interest payable monthly
    5. If the account is closed on or before expiry of three years opening of such account, an amount equal to two percent of the deposit shall be deducted and remainder paid to the depositor
    6. If the account is closed after expiry of three years opening of such account, an amount equal to one percent of the deposit shall be deducted and remainder paid to the depositor

    Even this scheme looks good. But lock in period is more compare to the company FDs, it is more flexible. You cannot do the cumulative in this plan.

    Hope this clears your doubts.

    Thanks,
    Krishna

    October 30th, 2009 at 6:52 am
68. Sandeep said:

    Dear Krishna,

    Hi,

    Request you to please suggest, how can I achieve following goals,

    Presently I am @ 37 yrs of age can spare approx 50~60 K / Month.

    1. Need Approx — 40 L @ age of 48 yrs( down the line 10 yrs)

    2. Pension Plan — To Start @ the age of 58th Yr onwards.

    3. Considering the present liabilities — need insurance cover of approx — 50 L.

    Looking forward to have your inputs for various investment plans.

    Thanks & regards

    Sandeep

    November 4th, 2009 at 8:57 pm
69. ajay gupta said:

    which is best bank to provide higher percentage on Fixed Deposit for Monthly Income.

    November 26th, 2009 at 2:18 am
70. krishnas said:

    Hello Ajay,

    All the banks have reduced the interest rates now. It will be varied from 6-8% only.

    Thanks,
    Krishna

    November 28th, 2009 at 6:20 pm
71. sunil said:

    One querie regarding PAN card..does one can know about the person income FROM PAN NO?bank ask for PAN NO for the cash above 50k…but why do they ask?please let us know

    December 29th, 2009 at 9:41 pm
72. Rajesh said:

    I would like to deposit 40 Lakhs of rupees to get the interest of it as the monthly income. How much will I get as the monthly interest for this deposit when the interest rate is 8% after the tax deduction?

    January 30th, 2010 at 1:53 pm
73. Rajesh said:

    I would also like to know the different methods of depositing this 40 Lakhs in order reduc the Tax deduction. Plz Help.

    January 30th, 2010 at 2:09 pm
74. krishnas said:

    Hello Sunil,

    Using PAN, govt can track your income and tax payment. Banks can not use anything with the PAN. These rules are forced by the govt. Every year banks will submit the transaction to the RBI.

    Thanks,
    Krishna

    January 30th, 2010 at 11:37 pm
75. Sunil said:

    Hello Sir,

    Thanks a ton,i was not aware about this, by putting the pan card no it pull up the income details……

    January 31st, 2010 at 2:55 am
76. krishnas said:

    Hello Sunil,

    That is fine. But, it is mandatory to submit the PAN card. It should be.

    Thanks,
    Krishna

    January 31st, 2010 at 3:49 am
77. krishnas said:

    Hello Rajesh,

    If you split the deposit and putting different branches, you can avoid the TDS. Normally TDS is deducted on 10% on the income. That too when the annual interest income is above Rs.10000 in a single branch.
    If you have any more comments, please reply to this comment.

    Thanks,
    Krishna

    January 31st, 2010 at 3:51 am
78. Rajesh said:

    Thank you so much Krishna. You have been a great help. I understand that I need to split the 40 Lakhs to small amount and then put it in different braches. So, Can I get the interest from all these branches to be deposited into a single savings account?

    January 31st, 2010 at 9:58 am
79. krishnas said:

    Hello Rajesh,

    You are always welcome!!!
    Yers. You can take all the amount and deposit into single account.

    Note that, paying taxes for your earnigs is your responsibility.

    Thanks,
    Krishna

    February 1st, 2010 at 7:14 pm
80. varghesemv said:

    Please do not put in HDFC any schema they are number no cheaters. they will show you big excel sheet but at the end you will not get the amount which you put… I had personnel experince with this HDFC bank…..

    Thank

    February 16th, 2010 at 10:55 pm
81. chandrika said:

    Hi Rajesh,
    Can u drop in ur mail id for further discussions.my id is chandrikanandhakumar@yahoo.com

    February 18th, 2010 at 8:08 am
82. Harisha KV said:

    dear sir

    i want invest Rs.400000.00 for two years and I have ccl (OD)in my bank up to Rs.500000.00. fo that security or colatral purpose i want give Rs.400000.00 or that amount valid investment as in so kindly help me where I invest and that should be use as clotral purpose

    March 10th, 2010 at 2:48 am

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